0000949365-20-000448.txt : 20201030 0000949365-20-000448.hdr.sgml : 20201030 20201029183500 ACCESSION NUMBER: 0000949365-20-000448 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20200831 FILED AS OF DATE: 20201030 DATE AS OF CHANGE: 20201029 EFFECTIVENESS DATE: 20201030 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FRANKLIN TAX FREE TRUST CENTRAL INDEX KEY: 0000757010 IRS NUMBER: 000000000 STATE OF INCORPORATION: DE FISCAL YEAR END: 0228 FILING VALUES: FORM TYPE: N-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-04149 FILM NUMBER: 201274057 BUSINESS ADDRESS: STREET 1: ONE FRANKLIN PARKWAY CITY: SAN MATEO STATE: CA ZIP: 94403-1906 BUSINESS PHONE: 650-312-2000 MAIL ADDRESS: STREET 1: ONE FRANKLIN PARKWAY CITY: SAN MATEO STATE: CA ZIP: 94403-1906 0000757010 S000006911 FRANKLIN ALABAMA TAX-FREE INCOME FUND C000018753 CLASS A1 FRALX C000018754 CLASS C FALEX C000173665 Advisor Class C000194353 Class R6 FALRX C000205892 Class A FALQX 0000757010 S000006912 FRANKLIN GEORGIA TAX-FREE INCOME FUND C000018755 CLASS A1 FTGAX C000018756 CLASS C FGAIX C000173666 Advisor Class FGFZX C000194354 Class R6 FGFQX C000205893 Class A FGAQX 0000757010 S000006913 FRANKLIN HIGH YIELD TAX-FREE INCOME FUND C000018757 ADVISOR CLASS FHYVX C000018758 CLASS A1 FRHIX C000018760 CLASS C FHYIX C000194355 Class R6 FHYRX C000199703 Class A FHYQX 0000757010 S000006915 FRANKLIN KENTUCKY TAX-FREE INCOME FUND C000018764 CLASS A1 FRKYX C000173667 Advisor Class FKTZX C000194356 Class R6 FKTRX C000205894 Class A FRKQX 0000757010 S000006916 FRANKLIN LOUISIANA TAX-FREE INCOME FUND C000018765 CLASS A1 FKLAX C000018766 CLASS C FLAIX C000173668 Advisor Class FLTZX C000194357 Class R6 FLAQX C000205895 Class A FQLAX 0000757010 S000006917 FRANKLIN MARYLAND TAX-FREE INCOME FUND C000018767 CLASS A1 FMDTX C000018768 CLASS C FMDIX C000079635 ADVISOR CLASS FMDZX C000194358 Class R6 FMDQX C000205896 Class A FQMDX 0000757010 S000006918 FRANKLIN MASSACHUSETTS TAX-FREE INCOME FUND C000018769 CLASS A1 FMISX C000018770 CLASS C FMAIX C000079636 ADVISOR CLASS FMAHX C000194359 Class R6 FKTMX C000205897 Class A FMAQX 0000757010 S000006919 FRANKLIN MICHIGAN TAX-FREE INCOME FUND C000018771 CLASS A1 FTTMX C000018773 CLASS C FRMTX C000068549 ADVISOR CLASS FMTFX C000194360 Class R6 FKTNX C000205898 Class A FMQTX 0000757010 S000006920 FRANKLIN MINNESOTA TAX-FREE INCOME FUND C000018774 CLASS A1 FMINX C000018775 CLASS C FMNIX C000079637 ADVISOR CLASS FMNZX C000194361 Class R6 FKTDX C000205899 Class A FMNQX 0000757010 S000006921 FRANKLIN MISSOURI TAX-FREE INCOME FUND C000018776 CLASS A1 FRMOX C000018777 CLASS C FMOIX C000079638 ADVISOR CLASS FRMZX C000194362 Class R6 FMOQX C000205900 Class A FMQOX 0000757010 S000006922 FRANKLIN ARIZONA TAX-FREE INCOME FUND C000018778 CLASS A1 FTAZX C000018780 CLASS C FAZIX C000068550 ADVISOR CLASS FAZZX C000194363 Class R6 FAZRX C000205901 Class A FAZQX 0000757010 S000006923 FRANKLIN NEW JERSEY TAX-FREE INCOME FUND C000018781 CLASS A1 FRNJX C000018783 CLASS C FNIIX C000068551 ADVISOR CLASS FNJZX C000194364 Class R6 FNJRX C000205902 Class A FNJQX 0000757010 S000006924 FRANKLIN NORTH CAROLINA TAX-FREE INCOME FUND C000018784 CLASS A1 FXNCX C000018785 CLASS C FNCIX C000079639 ADVISOR CLASS FNCZX C000194365 Class R6 FNCQX C000205903 Class A FQNCX 0000757010 S000006925 FRANKLIN OHIO TAX-FREE INCOME FUND C000018786 CLASS A1 FTOIX C000018788 CLASS C FOITX C000068552 ADVISOR CLASS FROZX C000194366 Class R6 FKTOX C000205904 Class A FOHQX 0000757010 S000006926 FRANKLIN OREGON TAX-FREE INCOME FUND C000018789 CLASS A1 FRORX C000018790 CLASS C FORIX C000079640 ADVISOR CLASS FOFZX C000194367 Class R6 FOFRX C000205905 Class A FOFQX 0000757010 S000006927 FRANKLIN PENNSYLVANIA TAX-FREE INCOME FUND C000018791 CLASS A1 FRPAX C000018793 CLASS C FRPTX C000079641 ADVISOR CLASS FPFZX C000194368 Class R6 FRPRX C000205906 Class A FPAQX 0000757010 S000006928 FRANKLIN VIRGINIA TAX-FREE INCOME FUND C000018794 CLASS A1 FRVAX C000018795 CLASS C FVAIX C000079642 ADVISOR CLASS FRVZX C000194369 Class R6 FRVRX C000205907 Class A FVAQX 0000757010 S000006929 FRANKLIN COLORADO TAX-FREE INCOME FUND C000018796 CLASS A1 FRCOX C000018797 CLASS C FCOIX C000079643 ADVISOR CLASS FCOZX C000194370 Class R6 FKTLX C000205908 Class A FCOQX 0000757010 S000006930 FRANKLIN CONNECTICUT TAX-FREE INCOME FUND C000018798 CLASS A1 FXCTX C000018799 CLASS C FCTIX C000079644 ADVISOR CLASS FCNZX C000194371 Class R6 FCTQX C000205909 Class A FQCTX 0000757010 S000006932 FRANKLIN FEDERAL INTERMEDIATE-TERM TAX-FREE INCOME FUND C000018802 CLASS A1 FKITX C000018803 CLASS C FCITX C000074134 ADVISOR CLASS FITZX C000194372 Class R6 FITQX C000205910 Class A FKQTX 0000757010 S000006933 FRANKLIN FEDERAL LIMITED-TERM TAX-FREE INCOME FUND C000018804 CLASS A1 FFTFX C000096868 Advisor Class FTFZX C000194373 Class R6 FFTRX C000205911 Class A FFLQX 0000757010 S000006935 FRANKLIN FLORIDA TAX-FREE INCOME FUND C000018806 CLASS A1 FRFLX C000018808 CLASS C FRFIX C000173669 Advisor Class FFTZX C000194374 Class R6 FRFQX C000205912 Class A FQFLX 0000757010 S000066695 Franklin Municipal Green Bond Fund C000214930 Advisor Class FGBKX C000214931 Class A FGBGX C000214932 Class C FGBHX C000214933 Class R6 FGBJX N-CSRS 1 primary-document.htm
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
 
FORM N-CSRS
 
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
 
Investment Company Act file number 811-04149
 
_Franklin Tax-Free Trust
(Exact name of registrant as specified in charter)
 
_One Franklin Parkway, San Mateo, CA  94403-1906
(Address of principal executive offices)    (Zip code)
 
_Craig S. Tyle, One Franklin Parkway, San Mateo, CA  94403-1906
(Name and address of agent for service)
 
Registrant's telephone number, including area code: (650) 312-2000
 
Date of fiscal year end: _2/28
 
Date of reporting period: _08/31/20
 
Item 1. Reports to Stockholders.
 
 
SEMIANNUAL
REPORT
AND
SHAREHOLDER
LETTER
Franklin
Tax-Free
Trust
August
31,
2020
Sign
up
for
electronic
delivery
at
franklintempleton.com/edelivery
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
Franklin
High
Yield
Tax-Free
Income
Fund
Franklin
Massachusetts
Tax-Free
Income
Fund
Franklin
Municipal
Green
Bond
Fund
Franklin
New
Jersey
Tax-Free
Income
Fund
Internet
Delivery
of
Fund
Reports
Unless
You
Request
Paper
Copies
:
Effective
January
1,
2021,
as
permitted
by
the
SEC,
paper
copies
of
the
Fund’s
shareholder
reports
will
no
longer
be
sent
by
mail,
unless
you
specifically
request
them
from
the
Fund
or
your
financial
intermediary.
Instead,
the
reports
will
be
made
available
on
a
website,
and
you
will
be
notified
by
mail
each
time
a
report
is
posted
and
provided
with
a
website
link
to
access
the
report.
If
you
already
elected
to
receive
shareholder
reports
electronically,
you
will
not
be
affected
by
this
change
and
you
need
not
take
any
action.
If
you
have
not
signed
up
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electronic
delivery,
we
would
encourage
you
to
join
fellow
shareholders
who
have.
You
may
elect
to
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shareholder
reports
and
other
communications
electronically
from
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Fund
by
calling
(800)
632-2301
or
by
contacting
your
financial
intermediary.
You
may
elect
to
continue
to
receive
paper
copies
of
all
your
future
shareholder
reports
free
of
charge
by
contacting
your
financial
intermediary
or,
if
you
invest
directly
with
a
Fund,
calling
(800)
632-2301
to
let
the
Fund
know
of
your
request.
Your
election
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paper
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account.
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Value
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Guarantee
franklintempleton.com
Not
part
of
the
semiannual
report
1
SHAREHOLDER
LETTER
Dear
Shareholder:
During
the
six
months
ended
August
31,
2020,
the
U.S.
economy
contracted
in
2020’s
first
and
second
quarters
in
response
to
the
novel
coronavirus
(COVID-19)
pandemic.
The
U.S.
Federal
Reserve
(Fed),
having
lowered
the
federal
funds
rate
three
times
in
2019
amid
global
trade
tensions,
held
the
rate
unchanged
through
February
2020.
However,
given
larger
economic
risks
posed
by
COVID-19,
the
Fed
lowered
its
key
rate
by
0.50%
on
March
3
and
further
by
1.00%
on
March
15,
decreasing
the
rate
during
the
period
from
1.75%
to
0.25%.
In
its
efforts
to
support
U.S.
economic
activity,
the
Fed
also
announced
broad
quantitative
easing
measures
to
support
credit
markets.
During
the
six-month
period,
municipal
bonds
delivered
marginally
positive
total
returns
as
investors
were
attracted
to
tax-free
income
in
a
declining
interest-rate
environment.
Factors
contributing
to
this
positive
investment
environment
for
municipals
included
relatively
low
inflation,
interest-
rate
declines
and
recent
actions
by
the
Fed
to
support
the
municipal
bond
market.
On
July
1,
2020,
we
appointed
Ben
Barber,
as
senior
vice
president
and
director
of
our
municipal
bond
department,
and
we
are
pleased
that
he
has
rejoined
Franklin.
Ben
most
recently
served
as
co-head
of
municipal
bonds
at
Goldman
Sachs
Asset
Management.
Ben
started
his
career
of
over
28
years
of
municipal
bond
investing
at
Franklin
in
1991,
working
with
several
current
investment
team
members
through
1999,
when
he
joined
Goldman
Sachs.
Franklin
Tax-Free
Trust’s
semiannual
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
experts.
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,
as
do
mutual
fund
share
prices.
As
always,
we
recommend
investors
consult
their
financial
advisors
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
advisor
when
you
have
questions
about
your
Franklin
tax-free
investment.
Sincerely,
Rupert
H.
Johnson,
Jr.
Chairman
Franklin
Tax-Free
Trust
Ben
Barber
Senior
Vice
President
Director
of
Municipal
Bonds
This
letter
reflects
our
analysis
and
opinions
as
of
August
31,
2020.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
country,
industry,
security
or
fund.
Statements
of
fact
are
from
sources
considered
reliable.
franklintempleton.com
Semiannual
Report
2
Contents
Semiannual
Report
Municipal
Bond
Market
Overview
...................
3
Investment
Strategy
and
Manager’s
Discussion
.......
4
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
....................................
5
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
..
10
Franklin
High
Yield
Tax-Free
Income
Fund
...........
15
Franklin
Massachusetts
Tax-Free
Income
Fund
.......
20
Franklin
Municipal
Green
Bond
Fund
................
25
Franklin
New
Jersey
Tax-Free
Income
Fund
..........
30
Financial
Highlights
and
Statement
of
Investments
....
35
Financial
Statements
.............................
128
Notes
to
Financial
Statements
.....................
137
Shareholder
Information
..........................
154
Visit
franklintempleton.com
for
fund
updates,
to
access
your
account,
or
to
find
helpful
financial
planning
tools.
3
franklintempleton.com
Semiannual
Report
SEMIANNUAL
REPORT
Municipal
Bond
Market
Overview
Beginning
in
March
2020,
the
global
spread
of
the
novel
coronavirus
and
the
drastic
measures
individual
countries
implemented
to
limit
infections
shocked
both
equity
and
fixed
income
markets.
Investors
sought
perceived
safe
havens,
driving
U.S.
Treasury
(UST)
yields
lower
and
causing
a
surge
in
volatility.
In
the
municipal
bond
market,
sellers
significantly
outnumbered
buyers,
resulting
in
market
dislocations.
March
2020
saw
outflows
of
$42
billion
from
municipal
bond
funds,
reversing
half
of
the
inflows
seen
throughout
2019.
Ratios
of
municipal
bond
yields
versus
duration-matched
USTs
cheapened
across
all
maturity
buckets,
surpassing
levels
reached
during
the
global
financial
crisis.
Municipal
bond
issues
closely
related
to
the
impact
of
the
virus,
including
states
like
New
York
and
New
Jersey
and
sectors
like
transportation,
retreated
more
than
other
parts
of
the
market.
In
March,
the
U.S.
Federal
Reserve
announced
it
would
begin
purchasing
municipal
bonds
as
needed
to
support
market
stability;
however,
there
were
still
significant
dislocations
within
the
secondary
bond
market
at
month-end,
and
new
issuance
had
all
but
stopped.
Moving
into
April
and
continuing
through
August,
municipal
bond
market
technical
conditions
improved
as
funds
flowed
into
the
market
and
were
met
with
negative
net
supply
of
tax-exempt
bonds.
Ratios
of
municipal
bonds
versus
USTs
tightened
but
remained
significantly
wider
than
at
the
beginning
of
2020.
Throughout
the
sector,
municipal
issuers
projected
large
deficits
reaching
into
2021
as
revenues
from
tax
receipts
and
usage
fees
fall
while
costs
of
services
increase.
The
Investment
Company
Institute
(ICI)
reported
net
inflows
of
approximately
$11
billion
into
municipal
bond
mutual
funds
in
August
2020.
Since
March,
over
half
of
the
record
outflows
in
March,
$42
billion,
had
returned
to
the
sector.
For
the
six-month
period,
municipal
bond
mutual
funds
had
approximately
$9
billion
of
net
outflows,
according
to
the
ICI.
For
the
six-month
period,
investment-grade
municipal
bonds,
as
measured
by
the
Bloomberg
Barclays
Municipal
Bond
Index,
posted
a
+0.19%
total
return,
while
USTs,
as
measured
by
the
Bloomberg
Barclays
U.S.
Treasury
Index,
posted
a
+3.42%
total
return,
and
investment-grade
corporate
bonds,
as
measured
by
the
Bloomberg
Barclays
U.S.
Corporate
Bond
Index,
posted
a
+3.11%
total
return.
1
All
three
of
these
fixed
income
sectors
underperformed
U.S.
stocks,
as
measured
by
the
Standard
&
Poor’s
®
500
Index,
which
posted
a
+19.63%
total
return
for
the
period.
1
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
August
31,
2020,
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.
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
Semiannual
Report
Investment
Strategy
and
Manager’s
Discussion
Investment
Strategy
We
use
a
consistent,
disciplined
strategy
with
the
objective
of
maximizing
tax-free
income
and
capital
preservation
by
focusing
on
credit
selection.
We
seek
to
maintain
exposure
to
securities
that
produce
high
tax-free
income,
while
balancing
risk
and
return
within
each
Fund’s
range
of
allowable
investments.
We
do
not
purchase
high-yield
securities
in
our
investment-grade
funds;
however,
if
a
security
is
downgraded,
we
are
not
required
to
sell
it.
Our
security
selection
process
includes
purchasing
securities
that
we
believe
are
undervalued
in
the
market
and
which
have
met
our
credit
selection
criteria.
We
do
not
use
leverage
or
derivatives,
which
could
add
volatility
and
contribute
to
underperformance
in
adverse
markets.
Manager’s
Discussion
Due
to
the
positive
sloping
municipal
yield
curve,
we
found
value
in
higher
quality
securities
in
the
15–30
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
August
31,
2020,
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,
country,
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
Semiannual
Report
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
This
semiannual
report
for
Franklin
Federal
Intermediate-
Term
Tax-Free
Income
Fund
covers
the
period
ended
August
31,
2020
.
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
to
provide
as
high
a
level
of
income
exempt
from
federal
income
taxes
as
is
consistent
with
prudent
investment
management
and
preservation
of
capital
by
investing
at
least
80%
of
its
total
assets
in
securities
that
pay
interest
free
from
such
taxes.
1
The
Fund
maintains
a
dollar-
weighted
average
portfolio
maturity
(the
time
in
which
the
debt
must
be
repaid)
of
three
to
10
years.
Performance
Overview
The
Fund’s
Class
A
share
price,
as
measured
by
net
asset
value,
decreased
from
$12.39
on
February
29,
2020,
to
$12.32
on
August
31,
2020.
The
Fund’s
Class
A
shares
paid
dividends
totaling
13.2462
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
2.13%,
based
on
an
annualization
of
the
2.2350
cents
per
share
August
dividend
and
the
maximum
offering
price
of
$12.60
on
August
31,
2020.
An
investor
in
the
2020
maximum
federal
income
tax
bracket
of
40.80%
(including
3.80%
Medicare
tax)
would
need
to
earn
a
distribution
rate
of
3.60%
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
six
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.
Credit
Quality
Composition
*
8/31/20
Ratings
%
of
Total
Investments
AAA
16.36%
AA
56.02%
A
17.47%
BBB
4.96%
Refunded
4.20%
Not
Rated
0.99%
*Securities,
except
for
those
labeled
Not
Rated,
are
assigned
ratings
by
one
or
more
Nationally
Recognized
Statistical
Credit
Rating
Organizations
(NRSROs),
such
as
Standard
&
Poor’s,
Moody’s
and
Fitch,
that
can
be
considered
by
the
investment
man-
ager
as
part
of
its
independent
securities
analysis.
When
ratings
from
multiple
agen-
cies
are
available,
the
highest
is
used,
consistent
with
the
portfolio
investment
process.
Ratings
reflect
an
NRSRO’s
opinion
of
an
issuer’s
creditworthiness
and
typically
range
from
AAA
(highest)
to
D
(lowest).
The
Below
Investment
Grade
category
consists
of
bonds
rated
below
BBB-.
The
Refunded
category
generally
consists
of
refunded
bonds
secured
by
U.S.
government
or
other
high-quality
securities
and
not
rerated
by
an
NRSRO.
The
Not
Rated
category
consists
of
ratable
securities
that
have
not
been
rated
by
an
NRSRO.
Cash
and
equivalents
are
excluded
from
this
composition.
Portfolio
Composition
8/31/20
%
of
Total
Investments
*
Transportation
24.70%
General
Obligation
18.51%
Utilities
16.05%
Hospital
&
Health
Care
11.80%
Refunded**
8.58%
Tax-Supported
8.07%
Subject
to
Government
Appropriations
6.17%
Higher
Education
4.22%
Other
Revenue
1.65%
Housing
0.25%
*
Does
not
include
cash
and
cash
equivalents.
**
Includes
all
refunded
bonds;
the
percentage
may
differ
from
that
in
the
Credit
Quality
Composition.
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
estimated
tax-basis
net
investment
income
distributions
for
the
period
shown.
A
portion
or
all
of
the
distribution
may
be
reclassified
as
return
of
capital
or
short-term
or
long-term
capital
gains
once
final
tax
designations
are
known.
Assumes
shares
were
purchased
and
held
for
the
entire
accrual
period.
Since
dividends
accrual
daily,
your
actual
distributions
will
vary
depending
on
the
date
you
purchased
your
shares
and
any
account
activity.
All
fund
distributions
will
vary
depending
upon
current
market
conditions,
and
past
distributions
are
not
indicative
of
future
trends.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Statement
of
Investments
(SOI).
The
SOI
begins
on
page
40
.
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
6
franklintempleton.com
Semiannual
Report
Thank
you
for
your
continued
participation
in
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund.
We
believe
our
conservative,
buy-and-hold
investment
strategy
can
help
us
achieve
high,
current,
tax-free
income
for
shareholders.
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
August
31,
2020,
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
August
31,
2020
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
7
franklintempleton.com
Semiannual
Report
The
performance
tables
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
8/31/20
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
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
6-Month
+0.52%
-1.74%
1-Year
+2.60%
+0.29%
5-Year
+13.52%
+2.10%
10-Year
+33.23%
+2.68%
Advisor
6-Month
+0.57%
+0.57%
1-Year
+2.85%
+2.85%
5-Year
+14.32%
+2.71%
10-Year
+34.72%
+3.03%
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
2.13%
3.60%
0.50%
0.41%
0.84%
0.69%
Advisor
2.43%
4.11%
0.76%
0.67%
1.28%
1.13%
See
page
8
for
Performance
Summary
footnotes.
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
Performance
Summary
8
franklintempleton.com
Semiannual
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
proj-
ects,
such
as
utilities,
hospitals,
higher
education
and
transportation.
A
change
that
affects
one
project
would
likely
affect
all
similar
projects,
thereby
increasing
market
risk.
Unexpected
events
and
their
aftermaths,
such
as
the
spread
of
deadly
diseases;
natural,
environmental
or
man-made
disasters;
financial,
political
or
social
disruptions;
terrorism
and
war;
and
other
tragedies
or
catastrophes,
can
cause
investor
fear
and
panic,
which
can
adversely
affect
the
economies
of
many
companies,
sectors,
nations,
regions
and
the
market
in
general,
in
ways
that
cannot
be
foreseen.
The
Fund’s
prospectus
also
includes
a
description
of
the
main
investment
risks.
1.
The
Fund
has
an
expense
reduction
contractually
guaranteed
through
6/30/21.
Fund
investment
results
reflect
the
expense
reduction;
without
this
reduction,
the
results
would
have
been
lower.
2.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
3.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
4.
Effective
9/10/18,
Class
A
shares
closed
to
new
investors,
were
renamed
Class
A1
shares,
and
a
new
Class
A
share
with
a
different
expense
structure
became
available.
Class
A
performance
shown
has
been
calculated
as
follows:
(a)
for
periods
prior
to
9/10/18,
a
restated
figure
is
used
based
on
the
Fund’s
Class
A1
performance
that
includes
any
Rule
12b-1
rate
differential
that
exists
between
Class
A1
and
Class
A;
and
(b)
for
periods
after
9/10/18,
actual
Class
A
performance
is
used,
reflecting
all
charges
and
fees
applicable
to
that
class.
5.
Distribution
rate
is
based
on
an
annualization
of
the
respective
class’s
August
dividend
and
the
maximum
offering
price
(NAV
for
Advisor
Class)
per
share
on
8/31/20.
6.
Taxable
equivalent
distribution
rate
and
yield
assume
the
2020
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.
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
(3/1/20–8/31/20)
Share
Class
Net
Investment
Income
A
$0.132462
A1
$0.141679
C
$0.107832
R6
$0.151541
Advisor
$0.147955
Total
Annual
Operating
Expenses
8
Share
Class
With
Fee
Waiver
Without
Fee
Waiver
A
0.71%
0.81%
Advisor
0.46%
0.56%
Your
Fund’s
Expenses
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
9
franklintempleton.com
Semiannual
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
184/365
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
3/1/20
Ending
Account
Value
8/31/20
Expenses
Paid
During
Period
3/1/20–8/31/20
1,
2
Ending
Account
Value
8/31/20
Expenses
Paid
During
Period
3/1/20–8/31/20
1,
2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$1,005.20
$3.57
$1,021.65
$3.60
0.71%
A1
$1,000
$1,005.20
$2.82
$1,022.39
$2.84
0.56%
C
$1,000
$1,002.40
$5.60
$1,019.62
$5.65
1.11%
R6
$1,000
$1,006.00
$2.02
$1,023.20
$2.03
0.40%
Advisor
$1,000
$1,005.70
$2.31
$1,022.90
$2.33
0.46%
10
franklintempleton.com
Semiannual
Report
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
This
semiannual
report
for
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
covers
the
period
ended
August
31,
2020
.
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
to
provide
as
high
a
level
of
income
exempt
from
federal
income
taxes
as
is
consistent
with
prudent
investment
management
and
preservation
of
capital
by
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,
increased
from
$10.59
on
February
29,
2020,
to$10.61
on
August
31,
2020.
The
Fund’s
Class
A
shares
paid
dividends
totaling
6.0438
cents
per
share
for
the
reporting
period.
2
The
Performance
Summary
beginning
on
page
12
shows
that
at
the
end
of
this
reporting
period
the
Fund’s
Class
A
shares’
distribution
rate
was
1.00%
based
on
an
annualization
of
the
0.8999
cents
per
share
August
dividend
and
the
maximum
offering
price
of
$10.85
on
August
31,
2020.
An
investor
in
the
2020
maximum
federal
income
tax
bracket
of
40.80%
(including
3.80%
Medicare
tax)
would
need
to
earn
a
distribution
rate
of
1.68%
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
six
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.
Credit
Quality
Composition
*
8/31/20
Ratings
%
of
Total
Investments
AAA
30.42%
AA
44.19%
A
13.28%
BBB
1.50%
Refunded
10.07%
Not
Rated
0.54%
*Securities,
except
for
those
labeled
Not
Rated,
are
assigned
ratings
by
one
or
more
Nationally
Recognized
Statistical
Credit
Rating
Organizations
(NRSROs),
such
as
Standard
&
Poor’s,
Moody’s
and
Fitch,
that
can
be
considered
by
the
investment
man-
ager
as
part
of
its
independent
securities
analysis.
When
ratings
from
multiple
agen-
cies
are
available,
the
highest
is
used,
consistent
with
the
portfolio
investment
process.
Ratings
reflect
an
NRSRO’s
opinion
of
an
issuer’s
creditworthiness
and
typically
range
from
SP-1
(highest)
to
SP-3
(lowest)
for
short-term
bonds
and
from
AAA
(highest)
to
D
(lowest)
for
long-term
bonds.
The
Below
Investment
Grade
category
consists
of
bonds
rated
below
BBB-.
The
Refunded
category
generally
consists
of
refunded
bonds
secured
by
U.S.
government
or
other
high-quality
securities
and
not
rerated
by
an
NRSRO.
The
Not
Rated
category
consists
of
ratable
securities
that
have
not
been
rated
by
an
NRSRO.
Cash
and
equivalents
are
excluded
from
this
composition.
Portfolio
Composition
8/31/20
%
of
Total
Investments
*
General
Obligation
40.19%
Refunded**
17.19%
Utilities
12.54%
Subject
to
Government
Appropriations
8.41%
Transportation
7.17%
Higher
Education
4.48%
Other
Revenue
2.29%
Tax-Supported
2.25%
Housing
2.02%
Hospital
&
Health
Care
1.91%
Corporate-Backed
1.55%
*
Does
not
include
cash
and
cash
equivalents.
**
Includes
all
refunded
bonds;
the
percentage
may
differ
from
that
in
the
Credit
Quality
Composition.
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
estimated
tax-basis
net
investment
income
distributions
for
the
period
shown.
A
portion
or
all
of
the
distribution
may
be
reclassified
as
return
of
capital
or
short-term
or
long-term
capital
gains
once
final
tax
designations
are
known.
Assumes
shares
were
purchased
and
held
for
the
entire
accrual
period.
Since
dividends
accrual
daily,
your
actual
distributions
will
vary
depending
on
the
date
you
purchased
your
shares
and
any
account
activity.
All
fund
distributions
will
vary
depending
upon
current
market
conditions,
and
past
distributions
are
not
indicative
of
future
trends.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Statement
of
Investments
(SOI).
The
SOI
begins
on
page
64
.
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
11
franklintempleton.com
Semiannual
Report
Thank
you
for
your
continued
participation
in
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund.
We
believe
our
conservative,
buy-and-hold
investment
strategy
can
help
us
achieve
high,
current,
tax-free
income
for
shareholders.
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
August
31,
2020,
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
August
31,
2020
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
12
franklintempleton.com
Semiannual
Report
The
performance
tables
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
8/31/20
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
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
6-Month
+0.77%
-1.50%
1-Year
+1.95%
-0.34%
5-Year
+7.45%
+0.99%
10-Year
+14.84%
+1.16%
Advisor
5
6-Month
+0.99%
+0.99%
1-Year
+2.21%
+2.21%
5-Year
+8.69%
+1.68%
10-Year
+16.79%
+1.56%
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
1.00%
1.68%
0.38%
0.23%
0.64%
0.39%
Advisor
1.27%
2.15%
0.63%
0.48%
1.06%
0.81%
See
page
13
for
Performance
Summary
footnotes.
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
Performance
Summary
13
franklintempleton.com
Semiannual
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
proj-
ects,
such
as
utilities,
hospitals,
higher
education
and
transportation.
A
change
that
affects
one
project
would
likely
affect
all
similar
projects,
thereby
increasing
market
risk.
Unexpected
events
and
their
aftermaths,
such
as
the
spread
of
deadly
diseases;
natural,
environmental
or
man-made
disasters;
financial,
political
or
social
disruptions;
terrorism
and
war;
and
other
tragedies
or
catastrophes,
can
cause
investor
fear
and
panic,
which
can
adversely
affect
the
economies
of
many
companies,
sectors,
nations,
regions
and
the
market
in
general,
in
ways
that
cannot
be
foreseen.
The
Fund’s
prospectus
also
includes
a
description
of
the
main
investment
risks.
1.
The
Fund
has
an
expense
reduction
contractually
guaranteed
through
6/30/21.
Fund
investment
results
reflect
the
expense
reduction;
without
this
reduction,
the
results
would
have
been
lower.
2.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
3.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
4.
Effective
9/10/18,
Class
A
shares
closed
to
new
investors,
were
renamed
Class
A1
shares,
and
a
new
Class
A
share
with
a
different
expense
structure
became
available.
Class
A
performance
shown
has
been
calculated
as
follows:
(a)
for
periods
prior
to
9/10/18,
a
restated
figure
is
used
based
on
the
Fund’s
Class
A1
performance
that
includes
any
Rule
12b-1
rate
differential
that
exists
between
Class
A1
and
Class
A;
and
(b)
for
periods
after
9/10/18,
actual
Class
A
performance
is
used,
reflecting
all
charges
and
fees
applicable
to
that
class.
5.
Effective
2/1/11,
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
2/1/11,
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
2/1/11,
actual
Advisor
Class
performance
is
used
reflecting
all
charges
and
fees
applicable
to
that
class.
6.
Distribution
rate
is
based
on
an
annualization
of
the
respective
class’s
August
dividend
and
the
maximum
offering
price
(NAV
for
Advisor
Class)
per
share
on
8/31/20.
7.
Taxable
equivalent
distribution
rate
and
yield
assume
the
2020
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.
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
(3/1/20–8/31/20)
Share
Class
Net
Investment
Income
A
$0.060438
A1
$0.065836
R6
$0.075482
Advisor
$0.073808
Total
Annual
Operating
Expenses
9
Share
Class
With
Fee
Waiver
Without
Fee
Waiver
A
0.65%
0.81%
Advisor
0.40%
0.56%
Your
Fund’s
Expenses
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
14
franklintempleton.com
Semiannual
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
184/365
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
3/1/20
Ending
Account
Value
8/31/20
Expenses
Paid
During
Period
3/1/20–8/31/20
1,
2
Ending
Account
Value
8/31/20
Expenses
Paid
During
Period
3/1/20–8/31/20
1,
2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$1,007.70
$3.25
$1,021.97
$3.28
0.64%
A1
$1,000
$1,008.20
$2.75
$1,022.46
$2.77
0.54%
R6
$1,000
$1,009.10
$1.84
$1,023.38
$1.85
0.36%
Advisor
$1,000
$1,009.90
$1.99
$1,023.22
$2.01
0.39%
15
franklintempleton.com
Semiannual
Report
Franklin
High
Yield
Tax-Free
Income
Fund
This
semiannual
report
for
Franklin
High
Yield
Tax-Free
Income
Fund
covers
the
period
ended
August
31,
2020
.
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
to
provide
a
high
current
yield
exempt
from
federal
income
taxes
by
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
$10.46
on
February
29,
2020,
to
$10.10
on
August
31,
2020.
The
Fund’s
Class
A
shares
paid
dividends
totaling
19.5597
cents
per
share
for
the
reporting
period.
2
The
Performance
Summary
beginning
on
page
17
shows
that
at
the
end
of
this
reporting
period
the
Fund’s
Class
A
shares’
distribution
rate
was
3.74%,
based
on
an
annualization
of
the
3.2664
cents
per
share
August
dividend
and
the
maximum
offering
price
of
$10.49
on
August
31,
2020.
An
investor
in
the
2020
maximum
federal
income
tax
bracket
of
40.80%
(including
3.80%
Medicare
tax)
would
need
to
earn
a
distribution
rate
of
6.32%
from
a
taxable
investment
to
match
the
Fund’s
Class
A
tax-free
distribution
rate.
For
other
performance
data,
please
see
the
Performance
Summary.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Manager’s
Discussion
We
used
various
investment
strategies
during
the
six
months
under
review
as
we
sought
to
maximize
tax-free
income
for
shareholders.
Please
read
the
Investment
Strategy
and
Manager’s
Discussion
on
page
4
for
more
information.
The
Fund
continued
to
seek
high,
current,
tax-free
income
for
its
shareholders
during
the
reporting
period.
Consistent
with
our
strategy,
the
Fund
did
not
use
leverage
or
credit
derivatives
to
boost
short-term
returns,
and
we
were
careful
to
not
overexpose
the
portfolio
to
any
one
credit
sector.
Credit
Quality
Composition
*
8/31/20
Ratings
%
of
Total
Investments
AAA
7.26%
AA
13.67%
A
24.44%
BBB
16.52%
Below
Investment
Grade
13.57%
Refunded
5.32%
Not
Rated
19.22%
*Securities,
except
for
those
labeled
Not
Rated,
are
assigned
ratings
by
one
or
more
Nationally
Recognized
Statistical
Credit
Rating
Organizations
(NRSROs),
such
as
Standard
&
Poor’s,
Moody’s
and
Fitch,
that
can
be
considered
by
the
investment
man-
ager
as
part
of
its
independent
securities
analysis.
When
ratings
from
multiple
agen-
cies
are
available,
the
highest
is
used,
consistent
with
the
portfolio
investment
process.
Ratings
reflect
an
NRSRO’s
opinion
of
an
issuer’s
creditworthiness
and
typically
range
from
AAA
(highest)
to
D
(lowest).
The
Below
Investment
Grade
category
consists
of
bonds
rated
below
BBB-.
The
Refunded
category
generally
consists
of
refunded
bonds
secured
by
U.S.
government
or
other
high-quality
securities
and
not
rerated
by
an
NRSRO.
The
Not
Rated
category
consists
of
ratable
securities
that
have
not
been
rated
by
an
NRSRO.
Cash
and
equivalents
are
excluded
from
this
composition.
Portfolio
Composition
8/31/20
%
of
Total
Investments
*
Transportation
18.57%
Hospital
&
Health
Care
16.03%
Utilities
14.97%
Tax-Supported
11.92%
Refunded**
11.37%
General
Obligation
7.85%
Other
Revenue
7.65%
Subject
to
Government
Appropriations
3.31%
Housing
3.29%
Corporate-Backed
3.09%
Higher
Education
1.95%
*
Does
not
include
cash
and
cash
equivalents.
**
Includes
all
refunded
bonds;
the
percentage
may
differ
from
that
in
the
Credit
Quality
Composition.
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
estimated
tax-basis
net
investment
income
distributions
for
the
period
shown.
A
portion
or
all
of
the
distribution
may
be
reclassified
as
return
of
capital
or
short-term
or
long-term
capital
gains
once
final
tax
designations
are
known.
Assumes
shares
were
purchased
and
held
for
the
entire
accrual
period.
Since
dividends
accrual
daily,
your
actual
distributions
will
vary
depending
on
the
date
you
purchased
your
shares
and
any
account
activity.
All
fund
distributions
will
vary
depending
upon
current
market
conditions,
and
past
distributions
are
not
indicative
of
future
trends.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Statement
of
Investments
(SOI).
The
SOI
begins
on
page
78
.
Franklin
High
Yield
Tax-Free
Income
Fund
16
franklintempleton.com
Semiannual
Report
Thank
you
for
your
continued
participation
in
Franklin
High
Yield
Tax-Free
Income
Fund.
We
believe
our
conservative,
buy-and-hold
investment
strategy
can
help
us
achieve
high,
current,
tax-free
income
for
shareholders.
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
August
31,
2020,
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
August
31,
2020
Franklin
High
Yield
Tax-Free
Income
Fund
17
franklintempleton.com
Semiannual
Report
The
performance
tables
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
8/31/20
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
3.75%
and
the
minimum
is
0%.
Class
A
:
3.75%
maximum
initial
sales
charge;
Advisor
Class:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Share
Class
Cumulative
Total
Return
1
Average
Annual
Total
Return
2
–
A
3,4
6-Month
-1.51%
-5.21%
1-Year
+1.46%
-2.35%
5-Year
+20.50%
+3.01%
10-Year
+51.27%
+3.83%
Advisor
6-Month
-1.48%
-1.48%
1-Year
+1.62%
+1.62%
5-Year
+21.27%
+3.93%
10-Year
+52.93%
+4.34%
Share
Class
Distribution
Rate
5
Taxable
Equivalent
Distribution
Rate
6
30-Day
Standardized
Yield
7
Taxable
Equivalent
30-Day
Standardized
Yield
6
A
3.74%
6.32%
2.49%
3.95%
Advisor
4.13%
6.98%
2.83%
4.49%
See
page
18
for
Performance
Summary
footnotes.
Franklin
High
Yield
Tax-Free
Income
Fund
Performance
Summary
18
franklintempleton.com
Semiannual
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.
Puerto
Rico
municipal
bonds
have
been
impacted
by
recent
adverse
economic
and
market
changes,
which
may
cause
the
Fund’s
share
price
to
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
signifi-
cant
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.
Unexpected
events
and
their
aftermaths,
such
as
the
spread
of
deadly
diseases;
natural,
environmental
or
man-made
disasters;
financial,
political
or
social
disruptions;
terrorism
and
war;
and
other
tragedies
or
catastrophes,
can
cause
investor
fear
and
panic,
which
can
adversely
affect
the
economies
of
many
companies,
sectors,
nations,
regions
and
the
market
in
general,
in
ways
that
cannot
be
foreseen.
The
Fund’s
prospectus
also
includes
a
description
of
the
main
investment
risks.
1.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
2.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
3.
Effective
9/10/18,
Class
A
shares
closed
to
new
investors,
were
renamed
Class
A1
shares,
and
a
new
Class
A
share
with
a
different
expense
structure
became
available.
Class
A
performance
shown
has
been
calculated
as
follows:
(a)
for
periods
prior
to
9/10/18,
a
restated
figure
is
used
based
on
the
Fund’s
Class
A1
performance
that
includes
any
Rule
12b-1
rate
differential
that
exists
between
Class
A1
and
Class
A;
and
(b)
for
periods
after
9/10/18,
actual
Class
A
performance
is
used,
reflecting
all
charges
and
fees
applicable
to
that
class.
4.
Prior
to
3/1/19,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
4.25%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total
returns
(with
sales
charges)
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
3.75%.
5.
Distribution
rate
is
based
on
an
annualization
of
the
respective
class’s
August
dividend
and
the
maximum
offering
price
(NAV
for
Advisor
Class)
per
share
on
8/31/20.
6.
Taxable
equivalent
distribution
rate
and
yield
assume
the
2020
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.
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
(3/1/20–8/31/20)
Share
Class
Net
Investment
Income
A
$0.195597
A1
$0.203135
C
$0.176453
R6
$0.210607
Advisor
$0.208438
Total
Annual
Operating
Expenses
8
Share
Class
A
0.79%
Advisor
0.54%
Your
Fund’s
Expenses
Franklin
High
Yield
Tax-Free
Income
Fund
19
franklintempleton.com
Semiannual
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
184/365
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
3/1/20
Ending
Account
Value
8/31/20
Expenses
Paid
During
Period
3/1/20–8/31/20
1,2
Ending
Account
Value
8/31/20
Expenses
Paid
During
Period
3/1/20–8/31/20
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$984.90
$3.98
$1,021.20
$4.05
0.80%
A1
$1,000
$985.60
$3.24
$1,021.95
$3.30
0.65%
C
$1,000
$982.30
$5.95
$1,019.20
$6.06
1.19%
R6
$1,000
$986.40
$2.51
$1,022.68
$2.56
0.50%
Advisor
$1,000
$985.20
$2.73
$1,022.46
$2.78
0.55%
20
franklintempleton.com
Semiannual
Report
Franklin
Massachusetts
Tax-Free
Income
Fund
This
semiannual
report
for
Franklin
Massachusetts
Tax-Free
Income
Fund
covers
the
period
ended
August
31,
2020
.
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
to
provide
as
high
a
level
of
income
exempt
from
federal
and
Massachusetts
personal
income
taxes
as
is
consistent
with
prudent
investment
management
and
preservation
of
capital
by
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
29,
2020,
to
$11.98
on
August
31,
2020.
The
Fund’s
Class
A
shares
paid
dividends
totaling
14.2462
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
2.29%
based
on
an
annualization
of
the
2.3730
cents
per
share
August
dividend
and
the
maximum
offering
price
of
$12.45
on
August
31,
2020.
An
investor
in
the
2020
maximum
combined
effective
federal
and
Massachusetts
personal
income
tax
bracket
of
45.80%
(including
3.8%
Medicare
tax)
would
need
to
earn
a
distribution
rate
of
4.22%
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
six
months
under
review,
Massachusetts’
economy
deteriorated
as
a
result
of
the
COVID-19
pandemic.
The
commonwealth’s
economy
was
strong
going
into
the
current
recession
but
was
impacted
by
the
governor’s
declaration
of
a
state
of
emergency
in
March,
and
the
effect
this
had
on
education
and
health
services,
which
are
important
components
of
the
economy.
Its
unemployment
rate
rose
from
2.8%
in
February
2020
to
11.3%
at
period-end,
far
exceeding
the
nation’s
8.4%
average.
3
Massachusetts’
prudent
build-up
of
reserves
and
new
sources
of
liquidity
will
aid
the
commonwealth
as
it
looks
to
balance
budgets
while
funding
key
priorities
with
uncertain
revenue.
The
commonwealth’s
net
tax-supported
Credit
Quality
Composition
*
8/31/20
Ratings
%
of
Total
Investments
AAA
14.93%
AA
63.42%
A
11.82%
BBB
1.25%
Refunded
8.58%
*Securities,
except
for
those
labeled
Not
Rated,
are
assigned
ratings
by
one
or
more
Nationally
Recognized
Statistical
Credit
Rating
Organizations
(NRSROs),
such
as
Standard
&
Poor’s,
Moody’s
and
Fitch,
that
can
be
considered
by
the
investment
man-
ager
as
part
of
its
independent
securities
analysis.
When
ratings
from
multiple
agen-
cies
are
available,
the
highest
is
used,
consistent
with
the
portfolio
investment
process.
Ratings
reflect
an
NRSRO’s
opinion
of
an
issuer’s
creditworthiness
and
typically
range
from
AAA
(highest)
to
D
(lowest).
The
Below
Investment
Grade
category
consists
of
bonds
rated
below
BBB-.
The
Refunded
category
generally
consists
of
refunded
bonds
secured
by
U.S.
government
or
other
high-quality
securities
and
not
rerated
by
an
NRSRO.
The
Not
Rated
category
consists
of
ratable
securities
that
have
not
been
rated
by
an
NRSRO.
Cash
and
equivalents
are
excluded
from
this
composition.
Portfolio
Composition
8/31/20
%
of
Total
Investments
*
Higher
Education
20.92%
Transportation
16.69%
General
Obligation
13.43%
Refunded**
12.30%
Hospital
&
Health
Care
10.90%
Utilities
8.71%
Tax-Supported
8.24%
Housing
7.19%
Other
Revenue
1.62%
*
Does
not
include
cash
and
cash
equivalents.
**
Includes
all
refunded
bonds;
the
percentage
may
differ
from
that
in
the
Credit
Quality
Composition.
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
estimated
tax-basis
net
investment
income
distributions
for
the
period
shown.
A
portion
or
all
of
the
distribution
may
be
reclassified
as
return
of
capital
or
short-term
or
long-term
capital
gains
once
final
tax
designations
are
known.
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:
Bureau
of
Labor
Statistics.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Statement
of
Investments
(SOI).
The
SOI
begins
on
page
109
.
Franklin
Massachusetts
Tax-Free
Income
Fund
21
franklintempleton.com
Semiannual
Report
debt
was
$6,258
per
capita
and
8.3%
of
personal
income,
above
the
$1,071
and
2.0%
national
medians,
respectively.
4
The
independent
credit
rating
agency
Moody’s
Investor
Service
(Moody’s)
maintained
the
commonwealth’s
general
obligation
bonds’
Aa1
rating
with
a
stable
outlook.
5
The
Aa1
rating
reflected,
among
other
factors,
Moody’s
view
of
the
commonwealth’s
large
economy
focused
on
important
knowledge
sectors
and
its
strong
financial
management
practices
and
adequate
reserves,
while
credit
challenges
include
high
debt
and
pensions
liabilities
compared
to
the
national
average,
slowing
population
growth
and
an
aging
demographic
profile.
Manager’s
Discussion
We
used
various
investment
strategies
during
the
six
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
believe
our
conservative,
buy-and-hold
investment
strategy
can
help
us
achieve
high,
current,
tax-free
income
for
shareholders.
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
August
31,
2020,
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.
4.
Source:
Moody’s
Investors
Service,
State
government
–
US:
Medians
–
State
debt
declined
in
2019,
but
likely
to
grow
in
coming
years
,
5
/12/20.
5.
This
does
not
indicate
Moody’s
rating
of
the
Fund.
See
www.franklintempletondatasources.com
for
additional
data
provider
information
Performance
Summary
as
of
August
31,
2020
Franklin
Massachusetts
Tax-Free
Income
Fund
22
franklintempleton.com
Semiannual
Report
The
performance
tables
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
8/31/20
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
3.75%
and
the
minimum
is
0%.
Class
A
:
3.75%
maximum
initial
sales
charge;
Advisor
Class:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Share
Class
Cumulative
Total
Return
1
Average
Annual
Total
Return
2
–
A
3,4
6-Month
-0.62%
-4.35%
1-Year
+2.22%
-1.61%
5-Year
+18.19%
+2.61%
10-Year
+39.97%
+3.03%
Advisor
6-Month
-0.58%
-0.58%
1-Year
+2.48%
+2.48%
5-Year
+19.04%
+3.55%
10-Year
+41.71%
+3.55%
Share
Class
Distribution
Rate
5
Taxable
Equivalent
Distribution
Rate
6
30-Day
Standardized
Yield
7
Taxable
Equivalent
30-Day
Standardized
Yield
6
A
2.29%
4.22%
1.08%
1.99%
Advisor
2.63%
4.87%
1.38%
2.55%
See
page
23
for
Performance
Summary
footnotes.
Franklin
Massachusetts
Tax-Free
Income
Fund
Performance
Summary
23
franklintempleton.com
Semiannual
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.
Unexpected
events
and
their
aftermaths,
such
as
the
spread
of
deadly
diseases;
natural,
environmental
or
man-made
disasters;
financial,
political
or
social
disruptions;
terrorism
and
war;
and
other
tragedies
or
catastrophes,
can
cause
investor
fear
and
panic,
which
can
adversely
affect
the
economies
of
many
companies,
sectors,
nations,
regions
and
the
market
in
general,
in
ways
that
cannot
be
foreseen.
The
Fund’s
prospectus
also
includes
a
description
of
the
main
investment
risks.
1.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
2.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
3.
Effective
9/10/18,
Class
A
shares
closed
to
new
investors,
were
renamed
Class
A1
shares,
and
a
new
Class
A
share
with
a
different
expense
structure
became
available.
Class
A
performance
shown
has
been
calculated
as
follows:
(a)
for
periods
prior
to
9/10/18,
a
restated
figure
is
used
based
on
the
Fund’s
Class
A1
performance
that
includes
any
Rule
12b-1
rate
differential
that
exists
between
Class
A1
and
Class
A;
and
(b)
for
periods
after
9/10/18,
actual
Class
A
performance
is
used,
reflecting
all
charges
and
fees
applicable
to
that
class.
4.
Prior
to
3/1/19,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
4.25%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total
returns
(with
sales
charges)
Total
returns
with
sales
charges
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
3.75%.
5.
Distribution
rate
is
based
on
an
annualization
of
the
respective
class’s
August
dividend
and
the
maximum
offering
price
(NAV
for
Advisor
Class)
per
share
on
8/31/20.
6.
Taxable
equivalent
distribution
rate
and
yield
assume
the
published
rates
as
of
6/18/20
for
the
maximum
combined
effective
federal
and
Massachusetts
personal
income
tax
rate
of
45.80%,
based
on
the
federal
income
tax
rate
of
37.00%
plus
3.80%
Medicare
tax.
7.
The
Fund’s
30-day
standardized
yield
is
calculated
over
a
trailing
30-day
period
using
the
yield
to
maturity
on
bonds
and/or
the
dividends
accrued
on
stocks.
It
may
not
equal
the
Fund’s
actual
income
distribution
rate,
which
reflects
the
Fund’s
past
dividends
paid
to
shareholders.
8.
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
(3/1/20–8/31/20)
Share
Class
Net
Investment
Income
A
$0.142462
A1
$0.151544
C
$0.118545
R6
$0.159807
Advisor
$0.157442
Total
Annual
Operating
Expenses
8
Share
Class
A
0.87%
Advisor
0.62%
Your
Fund’s
Expenses
Franklin
Massachusetts
Tax-Free
Income
Fund
24
franklintempleton.com
Semiannual
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
184/365
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
3/1/20
Ending
Account
Value
8/31/20
Expenses
Paid
During
Period
3/1/20–8/31/20
1,
2
Ending
Account
Value
8/31/20
Expenses
Paid
During
Period
3/1/20–8/31/20
1,
2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$993.80
$4.33
$1,020.86
$4.39
0.86%
A1
$1,000
$993.80
$3.59
$1,021.61
$3.64
0.71%
C
$1,000
$991.10
$6.32
$1,018.85
$6.41
1.26%
R6
$1,000
$995.30
$2.89
$1,022.31
$2.93
0.57%
Advisor
$1,000
$994.20
$3.08
$1,022.12
$3.12
0.61%
25
franklintempleton.com
Semiannual
Report
Franklin
Municipal
Green
Bond
Fund
This
semiannual
report
for
Franklin
Municipal
Green
Bond
Fund
covers
the
period
ended
August
31,
2020
.
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
to
maximize
income
exempt
from
federal
income
taxes
to
the
extent
consistent
with
prudent
investing
and
the
preservation
of
shareholders’
capital.
1
Under
normal
market
conditions,
the
Fund
invests
at
least
80%
of
its
net
assets
in
municipal
securities
whose
interest
is
free
from
regular
federal
income
taxes.
In
addition,
the
Fund
invests
at
least
80%
of
its
net
assets
in
municipal
green
bonds,
which
are
bonds
that
promote
environmental
sustainability.
There
is
no
regulation
or
universal
framework
for
giving
a
bond
a
“green”
designation.
We
define
green
bonds
as
those
whose
proceeds
go
toward
renewable
energy,
energy
efficiency,
pollution
prevention,
and
other
environmentally
sustainable
uses
listed
in
the
prospectus.
Performance
Overview
The
Fund’s
Class
A
share
price,
as
measured
by
net
asset
value,
increased
from
$10.00
on
February
29,
2020,
to
$10.35
on
August
31,
2020.
2
The
Fund’s
Class
A
shares
paid
dividends
totaling
7.8923
cents
per
share
for
the
reporting
period.
3
The
Performance
Summary
beginning
on
page
27
shows
that
at
the
end
of
this
reporting
period
the
Fund’s
Class
A
shares’
distribution
rate
was
1.53%,
based
on
an
annualization
of
the
1.3225
cents
per
share
August
dividend
and
the
maximum
offering
price
of
$10.35
on
August
31,
2020.
An
investor
in
the
2020
maximum
federal
income
tax
bracket
of
37.00%
(including
3.80%
Medicare
tax)
would
need
to
earn
a
distribution
rate
of
2.59%
from
a
taxable
investment
to
match
the
Fund’s
Class
A
tax-free
distribution
rate.
For
other
performance
data,
please
see
the
Performance
Summary.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Investment
Strategy
We
use
a
consistent,
disciplined
strategy
in
an
effort
maximize
tax-exempt
income
for
our
shareholders
by
selecting
securities
we
believe
will
provide
the
best
balance
between
risk
and
return
within
the
Fund’s
range
of
allowable
investments.
We
typically
uses
a
buy-and-hold
strategy,
which
means
we
generally
holds
securities
in
the
Fund’s
Credit
Quality
Composition
*
8/31/20
Ratings
%
of
Total
Investments
AAA
33.31%
AA
47.26%
A
19.43%
*Securities,
except
for
those
labeled
Not
Rated,
are
assigned
ratings
by
one
or
more
Nationally
Recognized
Statistical
Credit
Rating
Organizations
(NRSROs),
such
as
Standard
&
Poor’s,
Moody’s
and
Fitch,
that
can
be
considered
by
the
investment
man-
ager
as
part
of
its
independent
securities
analysis.
When
ratings
from
multiple
agen-
cies
are
available,
the
highest
is
used,
consistent
with
the
portfolio
investment
process.
Ratings
reflect
an
NRSRO’s
opinion
of
an
issuer’s
creditworthiness
and
typically
range
from
AAA
(highest)
to
D
(lowest).
The
Below
Investment
Grade
category
consists
of
bonds
rated
below
BBB-.
The
Refunded
category
generally
consists
of
refunded
bonds
secured
by
U.S.
government
or
other
high-quality
securities
and
not
rerated
by
an
NRSRO.
The
Not
Rated
category
consists
of
ratable
securities
that
have
not
been
rated
by
an
NRSRO.
Cash
and
equivalents
are
excluded
from
this
composition.
Portfolio
Composition
8/31/20
%
of
Total
Investments
*
Utilities
30.20%
Transportation
13.14%
Tax-Supported
12.86%
Housing
11.11%
General
Obligation
9.94%
Higher
Education
8.76%
Other
Revenue
5.26%
Subject
to
Government
Appropriations
4.37%
Hospital
&
Health
Care
4.36%
*
Does
not
include
cash
and
cash
equivalents.
1.
For
investors
subject
to
alternative
minimum
tax,
a
small
portion
of
Fund
dividends
may
be
taxable.
Distributions
of
capital
gains
are
generally
taxable.
To
avoid
imposition
of
28%
backup
withholding
on
all
Fund
distributions
and
redemption
proceeds,
U.S.
investors
must
be
properly
certified
on
Form
W-9
and
non-U.S.
investors
on
Form
W-8BEN.
2.
Effective
7/24/20,
the
Fund
began
offering
Class
A
shares.
Class
A
performance
shown
has
been
calculated
as
follows:
(a)
for
periods
prior
to
7/24/20,
a
restated
figure
is
used
based
on
the
Fund’s
Advisor
Class
performance
that
includes
any
Rule
12b-1
rate
differential
that
exists
between
Class
A
and
Advisor
Class;
and
(b)
for
periods
after
7/24/20,
actual
Class
A
performance
is
used,
reflecting
all
charges
and
fees
applicable
to
that
class.
3.
The
distribution
amount
is
the
sum
of
all
estimated
tax-basis
net
investment
income
distributions
for
the
period
shown.
A
portion
or
all
of
the
distribution
may
be
reclassified
as
return
of
capital
or
short-term
or
long-term
capital
gains
once
final
tax
designations
are
known.
Assumes
shares
were
purchased
and
held
for
the
entire
accrual
period.
Since
dividends
accrue
daily,
your
actual
distributions
will
vary
depending
on
the
date
you
purchased
your
shares
and
any
account
activity.
All
Fund
distributions
will
vary
depending
upon
current
market
conditions,
and
past
distributions
are
not
indicative
of
future
trends.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Statement
of
Investments
(SOI).
The
SOI
begins
on
page
116
.
Franklin
Municipal
Green
Bond
Fund
26
franklintempleton.com
Semiannual
Report
portfolio
for
income
purposes,
rather
than
trading
securities
for
capital
gains,
although
we
may
sell
a
security
at
any
time
if
we
believe
it
could
help
the
Fund
meet
its
goal.
Manager’s
Discussion
During
the
reporting
period,
we
implemented
the
initial
build
out
of
the
Fund’s
portfolio.
The
Fund
invests
in
municipal
bonds
that
support
environmental
sustainability
and
stewardship
while
also
delivering
income
that
is
exempt
from
federal
taxes.
Examples
of
the
type
of
projects
which
the
Fund
invests
in
include
water
and
sewer
utility
systems,
stormwater
management
infrastructure,
energy
efficient
and
LEED
(Leadership
in
Energy
and
Environmental
Design)
certified
buildings,
land
conservation
and
clean
energy.
The
strategy
considers
all
U.S.
tax-exempt
municipal
bond
offerings
that
carry
the
“Green
Bond”
designation
in
the
governing
bond
documents.
We
are
focused
on
ensuring
the
authenticity
and
intentionality
of
the
Green
Bond
designation.
Issuers
must
demonstrate
that
bond
proceeds
are
being
used
for
projects
or
programs
dedicated
to
environmental
sustainability.
These
projects
and
programs
should
generally
fall
into
one
of
the
10
eligible
categories
outlined
in
the
Green
Bond
Principles
(GBP),
a
set
of
voluntary
guidelines
to
ensure
the
integrity
of
the
Green
Bond
designation.
In
addition,
the
internal
selection
framework
incorporates
disclosure
and
reporting
policies,
environmental
impact,
and
external
verification.
In
addition,
the
strategy
considers
municipal
bonds
that
are
not
labeled
Green
Bonds
but
that
provide
funding
to
environmentally-friendly
projects
and
programs.
From
that
universe,
we
will
determine
whether
individual
issuers
meet
the
internal
threshold
for
investment
based
on
an
internal
Green
Bond
selection
framework.
The
internal
methodology
gauges
the
credibility
of
the
Green
Bond
designation
and
ensures
that
the
investment
is
aligned
with
the
Fund’s
objective
of
investing
in
projects
dedicated
to
promoting
environmental
sustainability.
Franklin
recognizes
the
GBP
and
encourages
issuers
to
adhere
to
them.
However,
the
ultimate
evaluation
does
not
require
strict
adherence
with
the
GBP.
Thank
you
for
your
continued
participation
in
Franklin
Municipal
Green
Bond
Fund.
We
believe
our
conservative,
buy-and-hold
investment
strategy
can
help
us
achieve
high,
current,
tax-free
income
for
shareholders.
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
August
31,
2020,
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
August
31,
2020
Franklin
Municipal
Green
Bond
Fund
27
franklintempleton.com
Semiannual
Report
The
performance
tables
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
8/31/20
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
6-Month
+0.63%
-3.14%
Since
Inception
(10/1/19)
+4.39
%
+0.47%
Advisor
6-Month
+0.73%
+0.73%
Since
Inception
(10/1/19)
+4.60%
+4.60%
30-Day
Standardized
Yield
7
Taxable
Equivalent
30-Day
Standardized
Yield
6
Share
Class
Distribution
Rate
5
Taxable
Equivalent
Distribution
Rate
6
(with
fee
waiver)
(without
fee
waiver)
(with
fee
waiver)
(without
fee
waiver)
A
1.53%
2.59%
0.94%
-3.04%
1.59%
-5.14%
Advisor
1.52%
2.58%
0.94%
-3.15%
1.59%
-5.32%
See
page
33
for
Performance
Summary
footnotes.
Franklin
Municipal
Green
Bond
Fund
Performance
Summary
28
franklintempleton.com
Semiannual
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
proj-
ects,
such
as
utilities,
hospitals,
higher
education
and
transportation.
A
change
that
affects
one
project
would
likely
affect
all
similar
projects,
thereby
increasing
market
risk.
Unexpected
events
and
their
aftermaths,
such
as
the
spread
of
deadly
diseases;
natural,
environmental
or
man-made
disasters;
financial,
political
or
social
disruptions;
terrorism
and
war;
and
other
tragedies
or
catastrophes,
can
cause
investor
fear
and
panic,
which
can
adversely
affect
the
economies
of
many
companies,
sectors,
nations,
regions
and
the
market
in
general,
in
ways
that
cannot
necessarily
be
foreseen.
The
Fund’s
prospectus
also
includes
a
description
of
the
main
investment
risks.
1.
The
Fund
has
an
expense
reduction
contractually
guaranteed
through
6/30/21.
Fund
investment
results
reflect
the
expense
reduction;
without
this
reduction,
the
results
would
have
been
lower.
2.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
3.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
4.
Effective
7/24/20,
the
Fund
began
offering
Class
A
shares.
Class
A
performance
shown
has
been
calculated
as
follows:
(a)
for
periods
prior
to
7/24/20,
a
restated
figure
is
used
based
on
the
Fund’s
Advisor
Class
performance
that
includes
any
Rule
12b-1
rate
differential
that
exists
between
Class
A
and
Advisor
Class;
and
(b)
for
periods
after
7/24/20,
actual
Class
A
performance
is
used,
reflecting
all
charges
and
fees
applicable
to
that
class.
5.
Distribution
rate
is
based
on
an
annualization
of
the
respective
class’s
August
dividend
and
the
maximum
offering
price
(NAV
for
Advisor
Class)
per
share
on
8/31/20.
6.
Taxable
equivalent
distribution
rate
and
yield
assume
the
2020
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.
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
(3/1/20–8/31/20)
Share
Class
Net
Investment
Income
A
(7/24/20-8/31/20)
$0.078923
C
(7/24/20-8/31/20)
$0.016247
R6
(7/24/20-8/31/20)
$0.016189
Advisor
$0.025732
Total
Annual
Operating
Expenses
8
Share
Class
With
Fee
Waiver
Without
Fee
Waiver
A
0.71%
3.50%
Advisor
0.46%
3.25%
Your
Fund’s
Expenses
Franklin
Municipal
Green
Bond
Fund
29
franklintempleton.com
Semiannual
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.
For
Class
Advisor,
3/1/20
for
Actual
and
Hypothetical.
For
Classes A,
C
and
R6,
7/27/20
for
Actual
and
3/1/20
for
Hypothetical.
2.
For
Class
Advisor
3/1/20–8/31/20.
For
Classes
A,
C
and
R6,
7/27/20–8/31/20.
3.
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
184/365
to
reflect
the
one-half
year
period.
The
multiplier
is
36/365
for
Actual
Class A,
Class
C
and
Class
R6
expenses
to
reflect
the
number
of
days
since
inception
4.
Reflects
expenses
after
fee
waivers
and
expense
reimbursements.
Actual
(actual
return
after
expenses)
Hypothetical
(5%
annual
return
before
expenses)
Share
Class
Beginning
Account
Value
3/1/20
1
Ending
Account
Value
8/31/20
Expenses
Paid
During
Period
3/1/20–8/31/20
2,3,4
Ending
Account
Value
8/31/20
Expenses
Paid
During
Period
3/1/20–8/31/20
3,4
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$995.80
$0.45
$1,004.48
$0.45
0.46%
C
$1,000
$995.80
$0.45
$1,004.48
$0.46
0.46%
R6
$1,000
$995.80
$0.45
$1,004.48
$0.46
0.46%
Advisor
$1,000
$1,007.30
$2.33
$1,022.89
$2.35
0.46%
30
franklintempleton.com
Semiannual
Report
Franklin
New
Jersey
Tax-Free
Income
Fund
This
semiannual
report
for
Franklin
New
Jersey
Tax-Free
Income
Fund
covers
the
period
ended
August
31,
2020
.
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
to
provide
as
high
a
level
of
income
exempt
from
federal
and
New
Jersey
personal
income
taxes
as
is
consistent
with
prudent
investment
management
and
preservation
of
capital
by
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
$11.77
on
February
29,
2020,
to
$11.39
on
August
31,
2020.
The
Fund’s
Class
A
shares
paid
dividends
totaling
14.5910
cents
per
share
for
the
reporting
period.
2
The
Performance
Summary
beginning
on
page
32
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
the
2.4673
cents
per
share
August
dividend
and
the
maximum
offering
price
of
$11.83
on
August
31,
2020.
An
investor
in
the
2020
maximum
combined
effective
federal
and
New
Jersey
personal
income
tax
bracket
of
51.55%
(including
3.8%
Medicare
tax)
would
need
to
earn
a
distribution
rate
of
5.17%
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
six
months
under
review,
New
Jersey’s
economy
contracted.
Significant
disruption
reduced
New
Jersey’s
economic
output
due
to
the
COVID-19
pandemic,
with
the
state
reporting
the
second
largest
number
of
COVID-19
cases
in
the
country.
The
state’s
structural
budget
deficit
and
relatively
low
reserves
were
exacerbated
by
the
pandemic.
New
Jersey’s
unemployment
rate
rose
from
3.8%
in
February
2020
to
10.9%
at
period-end,
above
the
nation’s
8.4%
average.
3
Due
to
the
pandemic’s
financial
impact,
New
Jersey’s
revenues
declined
in
the
second
half
of
the
fiscal
year
(FY)
2020
that
ended
June
30,
2020,
although
the
state
is
aiming
to
identify
solutions
to
its
COVID-19
Credit
Quality
Composition
*
8/31/20
Ratings
%
of
Total
Investments
AAA
11.12%
AA
36.94%
A
29.03%
BBB
12.72%
Below
Investment
Grade
2.63%
Refunded
7.56%
*Securities,
except
for
those
labeled
Not
Rated,
are
assigned
ratings
by
one
or
more
Nationally
Recognized
Statistical
Credit
Rating
Organizations
(NRSROs),
such
as
Standard
&
Poor’s,
Moody’s
and
Fitch,
that
can
be
considered
by
the
investment
man-
ager
as
part
of
its
independent
securities
analysis.
When
ratings
from
multiple
agen-
cies
are
available,
the
highest
is
used,
consistent
with
the
portfolio
investment
process.
Ratings
reflect
an
NRSRO’s
opinion
of
an
issuer’s
creditworthiness
and
typically
range
from
AAA
(highest)
to
D
(lowest).
The
Below
Investment
Grade
category
consists
of
bonds
rated
below
BBB-.
The
Refunded
category
generally
consists
of
refunded
bonds
secured
by
U.S.
government
or
other
high-quality
securities
and
not
rerated
by
an
NRSRO.
The
Not
Rated
category
consists
of
ratable
securities
that
have
not
been
rated
by
an
NRSRO.
Cash
and
equivalents
are
excluded
from
this
composition.
Portfolio
Composition
8/31/20
%
of
Total
Investments
*
Transportation
24.41%
Higher
Education
19.33%
Hospital
&
Health
Care
17.36%
Subject
to
Government
Appropriations
10.61%
Refunded**
9.18%
Housing
7.72%
Utilities
4.26%
General
Obligation
3.88%
Other
Revenue
3.25%
*
Does
not
include
cash
and
cash
equivalents.
**
Includes
all
refunded
bonds;
the
percentage
may
differ
from
that
in
the
Credit
Quality
Composition.
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
estimated
tax-basis
net
investment
income
distributions
for
the
period
shown.
A
portion
or
all
of
the
distribution
may
be
reclassified
as
return
of
capital
or
short-term
or
long-term
capital
gains
once
final
tax
designations
are
known.
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:
Bureau
of
Labor
Statistics.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Statement
of
Investments
(SOI).
The
SOI
begins
on
page
123
.
Franklin
New
Jersey
Tax-Free
Income
Fund
31
franklintempleton.com
Semiannual
Report
related
budgetary
and
liquidity
gaps
in
FY
2020
and
FY
2021.
The
state’s
net
tax-supported
debt
was
$4,125
per
capita
and
5.8%
of
personal
income,
above
the
$1,071
and
2.0%
national
medians,
respectively.
4
The
independent
credit
rating
agency
Moody’s
Investor
Service
(Moody’s)
maintained
the
state’s
general
obligation
bonds’
A3
rating,
but
revised
the
outlook
to
negative
from
stable.
5
The
A3
rating
reflected
Moody’s
view
of
New
Jersey’s
large,
diverse,
and
wealthy
economy,
while
the
negative
outlook
reflects
the
substantial
impact
the
COVID-19
crisis
will
have
on
the
state’s
finances
and
economy.
Manager’s
Discussion
We
used
various
investment
strategies
during
the
six
months
under
review
as
we
sought
to
maximize
tax-free
income
for
shareholders.
Please
read
the
Investment
Strategy
an
Manager’s
Discussion
on
page
4
for
more
information.
Thank
you
for
your
continued
participation
in
Franklin
New
Jersey
Tax-Free
Income
Fund.
We
believe
our
conservative,
buy-and-hold
investment
strategy
can
help
us
achieve
high,
current,
tax-free
income
for
shareholders.
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
August
31,
2020,
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.
4.
Source:
Moody’s
Investors
Service,
State
government
–
US:
Medians
–
State
debt
declined
in
2019,
but
likely
to
grow
in
coming
years
,
5
/12/20.
5.
This
does
not
indicate
Moody’s
rating
of
the
Fund.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Performance
Summary
as
of
August
31,
2020
Franklin
New
Jersey
Tax-Free
Income
Fund
32
franklintempleton.com
Semiannual
Report
The
performance
tables
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
8/31/20
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
3.75%
and
the
minimum
is
0%.
Class
A
:
3.75%
maximum
initial
sales
charge;
Advisor
Class:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Share
Class
Cumulative
Total
Return
1
Average
Annual
Total
Return
2
–
A
3,4
6-Month
-1.97%
-5.64%
1-Year
+0.71%
-3.06%
5-Year
+16.66%
+2.35%
10-Year
+33.29%
+2.52%
Advisor
6-Month
-1.93%
-1.93%
1-Year
+0.97%
+0.97%
5-Year
+17.49%
+3.28%
10-Year
+34.83%
+3.03%
Share
Class
Distribution
Rate
5
Taxable
Equivalent
Distribution
Rate
6
30-Day
Standardized
Yield
7
Taxable
Equivalent
30-Day
Standardized
Yield
6
A
2.50%
5.17%
1.29%
2.66%
Advisor
2.86%
5.91%
1.59%
3.28%
See
page
33
for
Performance
Summary
footnotes.
Franklin
New
Jersey
Tax-Free
Income
Fund
Performance
Summary
33
franklintempleton.com
Semiannual
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.
The
Fund
holds
a
very
small
portion
of
its
assets
in
Puerto
Rico
municipal
bonds
that
have
been
impacted
by
recent
adverse
economic
and
market
changes,
which
may
cause
the
Fund’s
share
price
to
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.
Unexpected
events
and
their
aftermaths,
such
as
the
spread
of
deadly
diseases;
natural,
environmental
or
man-made
disasters;
financial,
political
or
social
disruptions;
terrorism
and
war;
and
other
tragedies
or
catastrophes,
can
cause
investor
fear
and
panic,
which
can
adversely
affect
the
economies
of
many
companies,
sectors,
nations,
regions
and
the
market
in
general,
in
ways
that
cannot
be
foreseen.
The
Fund’s
prospectus
also
includes
a
description
of
the
main
investment
risks.
1.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
2.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
3.
Effective
9/10/18,
Class
A
shares
closed
to
new
investors,
were
renamed
Class
A1
shares,
and
a
new
Class
A
share
with
a
different
expense
structure
became
available.
Class
A
performance
shown
has
been
calculated
as
follows:
(a)
for
periods
prior
to
9/10/18,
a
restated
figure
is
used
based
on
the
Fund’s
Class
A1
performance
that
includes
any
Rule
12b-1
rate
differential
that
exists
between
Class
A1
and
Class
A;
and
(b)
for
periods
after
9/10/18,
actual
Class
A
performance
is
used,
reflecting
all
charges
and
fees
applicable
to
that
class.
4.
Prior
to
3/1/19,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
4.25%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total
returns
(with
sales
charges)
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
3.75%.
5.
Distribution
rate
is
based
on
an
annualization
of
the
respective
class’s
August
dividend
and
the
maximum
offering
price
(NAV
for
Advisor
Class)
per
share
on
8/31/20.
6.
Taxable
equivalent
distribution
rate
and
yield
assume
the
published
rates
as
of
6/18/20
for
the
maximum
combined
effective
federal
and
New
Jersey
personal
income
tax
rate
of
51.55%,
based
on
the
federal
income
tax
rate
of
37.00%
plus
3.80%
Medicare
tax.
7.
The
Fund’s
30-day
standardized
yield
is
calculated
over
a
trailing
30-day
period
using
the
yield
to
maturity
on
bonds
and/or
the
dividends
accrued
on
stocks.
It
may
not
equal
the
Fund’s
actual
income
distribution
rate,
which
reflects
the
Fund’s
past
dividends
paid
to
shareholders.
8.
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
(3/1/20–8/31/20)
Share
Class
Net
Investment
Income
A
$0.145910
A1
$0.154463
C
$0.123335
R6
$0.162610
Advisor
$0.160183
Total
Annual
Operating
Expenses
8
Share
Class
A
0.82%
Advisor
0.57%
Your
Fund’s
Expenses
Franklin
New
Jersey
Tax-Free
Income
Fund
34
franklintempleton.com
Semiannual
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
184/365
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
3/1/20
Ending
Account
Value
8/31/20
Expenses
Paid
During
Period
3/1/20–8/31/20
1,
2
Ending
Account
Value
8/31/20
Expenses
Paid
During
Period
3/1/20–8/31/20
1,
2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$980.30
$4.14
$1,021.07
$4.23
0.83%
A1
$1,000
$980.20
$3.37
$1,021.80
$3.44
0.68%
C
$1,000
$977.80
$6.09
$1,019.05
$6.22
1.22%
R6
$1,000
$980.90
$2.66
$1,022.52
$2.71
0.53%
Advisor
$1,000
$980.70
$2.90
$1,022.33
$2.96
0.58
%
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
35
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
Year
Ended
February
28,
2019
b
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
..........................................
$12.39
$11.98
$11.87
Income
from
investment
operations
c
:
Net
investment
income
d
..................................................
0.13
0.27
0.15
Net
realized
and
unrealized
gains
(losses)
....................................
(0.07)
0.43
0.11
Total
from
investment
operations
.............................................
0.06
0.70
0.26
Less
distributions
from:
Net
investment
income
...................................................
(0.13)
(0.29)
(0.15)
Net
asset
value,
end
of
period
...............................................
$12.32
$12.39
$11.98
Total
return
e
............................................................
0.52%
5.92%
2.20%
Ratios
to
average
net
assets
f
Expenses
before
waiver
and
payments
by
affiliates
...............................
0.80%
0.81%
0.80%
Expenses
net
of
waiver
and
payments
by
affiliates
g
...............................
0.71%
0.71%
0.71%
Net
investment
income
....................................................
2.15%
2.28%
2.56%
Supplemental
data
Net
assets,
end
of
period
(000’s)
.............................................
$548,654
$407,125
$182,330
Portfolio
turnover
rate
.....................................................
11.08%
14.78%
2.57%
a
For
the
year
ended
February
29.
b
For
the
period
September
10,
2018
(effective
date)
to
February
28,
2019.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
36
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
2019
2018
2017
2016
a
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$12.38
$11.96
$11.94
$12.11
$12.50
$12.44
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.14
0.30
0.32
0.31
0.31
0.31
Net
realized
and
unrealized
gains
(losses)
(0.08)
0.43
0.02
(0.17)
(0.40)
0.06
Total
from
investment
operations
........
0.06
0.73
0.34
0.14
(0.09)
0.37
Less
distributions
from:
Net
investment
income
..............
(0.14)
(0.31)
(0.32)
(0.31)
(0.30)
(0.31)
Net
asset
value,
end
of
period
..........
$12.30
$12.38
$11.96
$11.94
$12.11
$12.50
Total
return
d
.......................
0.52%
6.17%
2.91%
1.14%
(0.70)%
3.03%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.66%
0.66%
0.65%
0.66%
0.66%
0.66%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
0.56%
f
0.56%
f
0.56%
f
0.65%
0.66%
0.66%
Net
investment
income
...............
2.32%
2.43%
2.71%
2.56%
2.48%
2.54%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$1,442,545
$1,516,009
$1,575,494
$1,850,075
$1,929,083
$2,017,642
Portfolio
turnover
rate
................
11.08%
14.78%
2.57%
10.72%
8.98%
6.62%
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,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
37
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
2019
2018
2017
2016
a
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$12.42
$12.00
$11.98
$12.14
$12.53
$12.47
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.11
0.23
0.26
0.25
0.24
0.25
Net
realized
and
unrealized
gains
(losses)
(0.08)
0.43
0.02
(0.17)
(0.39)
0.05
Total
from
investment
operations
........
0.03
0.66
0.28
0.08
(0.15)
0.30
Less
distributions
from:
Net
investment
income
..............
(0.11)
(0.24)
(0.26)
(0.24)
(0.24)
(0.24)
Net
asset
value,
end
of
period
..........
$12.34
$12.42
$12.00
$11.98
$12.14
$12.53
Total
return
d
.......................
0.24%
5.58%
2.34%
0.67%
(1.26)%
2.47%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
..........................
1.21%
1.21%
1.20%
1.20%
1.21%
1.21%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
1.11%
f
1.11%
f
1.11%
f
1.19%
1.21%
1.21%
Net
investment
income
...............
1.77%
1.88%
2.16%
2.02%
1.93%
1.99%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$139,380
$203,994
$262,612
$358,228
$425,649
$469,355
Portfolio
turnover
rate
................
11.08%
14.78%
2.57%
10.72%
8.98%
6.62%
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,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
38
In
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
Year
Ended
February
28,
2018
b
2020
a
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
..............................
$12.41
$11.99
$11.97
$12.28
Income
from
investment
operations
c
:
Net
investment
income
d
......................................
0.15
0.32
0.34
0.20
Net
realized
and
unrealized
gains
(losses)
........................
(0.08)
0.43
0.02
(0.32)
Total
from
investment
operations
.................................
0.07
0.75
0.36
(0.12)
Less
distributions
from:
Net
investment
income
.......................................
(0.15)
(0.33)
(0.34)
(0.19)
Net
asset
value,
end
of
period
...................................
$12.33
$12.41
$11.99
$11.97
Total
return
e
................................................
0.60%
6.33%
3.06%
(0.97)%
Ratios
to
average
net
assets
f
Expenses
before
waiver
and
payments
by
affiliates
...................
0.50%
0.50%
0.49%
0.49%
Expenses
net
of
waiver
and
payments
by
affiliates
....................
0.40%
g
0.40%
g
0.39%
g
0.48%
Net
investment
income
........................................
2.47%
2.59%
2.88%
2.73%
Supplemental
data
Net
assets,
end
of
period
(000’s)
.................................
$376,357
$410,541
$417,612
$672,199
Portfolio
turnover
rate
.........................................
11.08%
14.78%
2.57%
10.72%
a
For
the
year
ended
February
29.
b
For
the
period
August
1,
2017
(effective
date)
to
February
28,
2018.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
39
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
2019
2018
2017
2016
a
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$12.41
$11.99
$11.97
$12.13
$12.52
$12.47
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.15
0.31
0.33
0.32
0.32
0.33
Net
realized
and
unrealized
gains
(losses)
(0.08)
0.43
0.02
(0.16)
(0.39)
0.04
Total
from
investment
operations
........
0.07
0.74
0.35
0.16
(0.07)
0.37
Less
distributions
from:
Net
investment
income
..............
(0.15)
(0.32)
(0.33)
(0.32)
(0.32)
(0.32)
Net
asset
value,
end
of
period
..........
$12.33
$12.41
$11.99
$11.97
$12.13
$12.52
Total
return
d
.......................
0.57%
6.27%
3.00%
1.32%
(0.61)%
3.05%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.56%
0.56%
0.55%
0.56%
0.56%
0.56%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
0.46%
f
0.46%
f
0.46%
f
0.55%
0.56%
0.56%
Net
investment
income
...............
2.41%
2.53%
2.81%
2.66%
2.58%
2.64%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$1,124,985
$1,277,185
$1,103,570
$1,196,627
$1,986,241
$2,019,784
Portfolio
turnover
rate
................
11.08%
14.78%
2.57%
10.72%
8.98%
6.62%
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
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited),
August
31,
2020
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
40
a
a
Shares
a
Value
a
Management
Investment
Companies
0.3%
Capital
Markets
0.3%
a
Franklin
Liberty
Municipal
Bond
ETF
.....................................
365,000
$
9,814,850
Total
Management
Investment
Companies
(Cost
$9,941,688)
.....................
9,814,850
Principal
Amount
a
a
a
a
Municipal
Bonds
98.7%
Alabama
2.2%
Alabama
Public
School
and
College
Authority
,
Revenue
,
2014-B
,
Refunding
,
5
%
,
1/01/27
.........................................................
$
25,000,000
29,125,000
Chatom
Industrial
Development
Board
,
PowerSouth
Energy
Cooperative,
Revenue,
2020,
Refunding,
AGMC
Insured,
5%,
8/01/28
........................................................
500,000
624,365
PowerSouth
Energy
Cooperative,
Revenue,
2020,
Refunding,
AGMC
Insured,
5%,
8/01/29
........................................................
485,000
614,548
PowerSouth
Energy
Cooperative,
Revenue,
2020,
Refunding,
AGMC
Insured,
5%,
8/01/30
........................................................
425,000
545,828
Infirmary
Health
System
Special
Care
Facilities
Financing
Authority
of
Mobile
,
Infirmary
Health
System
Obligated
Group,
Revenue,
2016A,
5%,
2/01/27
........
4,920,000
5,871,380
Infirmary
Health
System
Obligated
Group,
Revenue,
2016A,
5%,
2/01/28
........
5,000,000
5,908,300
Madison
City
Board
of
Education
,
Special
Tax,
2019,
4%,
2/01/33
.......................................
2,855,000
3,531,292
Special
Tax,
2019,
4%,
2/01/34
.......................................
2,970,000
3,657,644
Special
Tax,
2019,
4%,
2/01/35
.......................................
3,095,000
3,798,246
Special
Tax,
2019,
4%,
2/01/37
.......................................
3,350,000
4,076,816
Shelby
County
Board
of
Education
,
Special
Tax,
2011,
5%,
2/01/22
........................................
5,250,000
5,354,842
Special
Tax,
2011,
5%,
2/01/23
........................................
5,520,000
5,628,137
Special
Tax,
2011,
5%,
2/01/24
........................................
5,055,000
5,152,764
Special
Tax,
2011,
5%,
2/01/25
........................................
5,920,000
6,033,250
79,922,412
Alaska
0.1%
Alaska
Municipal
Bond
Bank
Authority
,
Revenue,
2020,
Refunding,
4%,
12/01/35
................................
1,710,000
1,989,055
Revenue,
2020,
Refunding,
4%,
12/01/37
................................
1,305,000
1,507,993
3,497,048
Arizona
3.7%
Arizona
Department
of
Transportation
,
State
Highway
Fund,
Revenue,
2011A,
Pre-Refunded,
5%,
7/01/24
............
5,000,000
5,200,750
State
Highway
Fund,
Revenue,
2011A,
Pre-Refunded,
5%,
7/01/25
............
5,000,000
5,200,750
State
Highway
Fund,
Revenue,
2015,
Refunding,
5%,
7/01/29
................
10,920,000
12,700,943
Arizona
Health
Facilities
Authority
,
Phoenix
Children's
Hospital
Obligated
Group
,
Revenue
,
2012
A
,
Refunding
,
5
%
,
2/01/27
...............................
6,000,000
6,364,920
Arizona
Industrial
Development
Authority
,
Equitable
School
Revolving
Fund
LLC
Obligated
Group,
Revenue,
2019
A,
5%,
11/01/29
.......................................................
1,100,000
1,402,335
Equitable
School
Revolving
Fund
LLC
Obligated
Group,
Revenue,
2019
A,
5%,
11/01/30
.......................................................
600,000
760,320
Equitable
School
Revolving
Fund
LLC
Obligated
Group,
Revenue,
2019
A,
5%,
11/01/31
.......................................................
630,000
794,896
Equitable
School
Revolving
Fund
LLC
Obligated
Group,
Revenue,
2019
A,
5%,
11/01/32
.......................................................
1,000,000
1,254,580
Equitable
School
Revolving
Fund
LLC
Obligated
Group,
Revenue,
2019
A,
5%,
11/01/35
.......................................................
1,115,000
1,383,169
Equitable
School
Revolving
Fund
LLC
Obligated
Group,
Revenue,
2019
A,
5%,
11/01/36
.......................................................
1,250,000
1,546,925
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
41
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
$
1,295,522
Equitable
School
Revolving
Fund
LLC
Obligated
Group,
Revenue,
2020A,
4%,
11/01/37
.......................................................
1,105,000
1,296,817
Equitable
School
Revolving
Fund
LLC
Obligated
Group,
Revenue,
2020A,
4%,
11/01/38
.......................................................
600,000
700,530
Phoenix
Children's
Hospital
Obligated
Group,
Revenue,
2020A,
5%,
2/01/35
.....
500,000
641,820
Phoenix
Children's
Hospital
Obligated
Group,
Revenue,
2020A,
5%,
2/01/36
.....
750,000
959,152
Phoenix
Children's
Hospital
Obligated
Group,
Revenue,
2020A,
5%,
2/01/37
.....
600,000
763,650
Phoenix
Children's
Hospital
Obligated
Group,
Revenue,
2020A,
5%,
2/01/38
.....
1,000,000
1,268,520
Phoenix
Children's
Hospital
Obligated
Group,
Revenue,
2020A,
3%,
2/01/39
.....
1,200,000
1,274,400
City
of
Mesa
,
Utility
System
,
Revenue
,
2016
,
Refunding
,
5
%
,
7/01/29
............
2,500,000
3,111,075
City
of
Phoenix
Civic
Improvement
Corp.
,
Revenue,
2019
A,
5%,
7/01/35
........................................
9,720,000
11,409,531
Revenue,
2019
A,
5%,
7/01/36
........................................
6,380,000
7,457,901
Airport,
Revenue,
Junior
Lien,
2017
D,
Refunding,
5%,
7/01/30
...............
10,000,000
12,198,100
Airport,
Revenue,
Junior
Lien,
2019
B,
5%,
7/01/35
........................
3,500,000
4,321,345
Airport,
Revenue,
Junior
Lien,
2019
B,
5%,
7/01/36
........................
10,225,000
12,571,535
County
of
Pima
,
Sewer
System,
Revenue,
2011
B,
Pre-Refunded,
5%,
7/01/24
................
6,030,000
6,259,200
Sewer
System,
Revenue,
2011
B,
Pre-Refunded,
5%,
7/01/25
................
4,500,000
4,671,045
Glendale
Industrial
Development
Authority
,
Midwestern
University
Foundation,
Revenue,
2020,
Refunding,
5%,
5/15/30
......
525,000
674,499
Midwestern
University
Foundation,
Revenue,
2020,
Refunding,
5%,
5/15/31
......
425,000
542,457
Midwestern
University
Foundation,
Revenue,
2020,
Refunding,
5%,
5/15/32
......
525,000
667,868
Maricopa
County
Industrial
Development
Authority
,
Scottsdale
Healthcare
Hospitals
Obligated
Group,
Revenue,
2019A,
Refunding,
5%,
9/01/30
........................................................
850,000
1,067,192
Scottsdale
Healthcare
Hospitals
Obligated
Group,
Revenue,
2019A,
Refunding,
5%,
9/01/31
........................................................
1,000,000
1,248,750
Scottsdale
Healthcare
Hospitals
Obligated
Group,
Revenue,
2019A,
Refunding,
5%,
9/01/32
........................................................
1,000,000
1,240,590
Scottsdale
Healthcare
Hospitals
Obligated
Group,
Revenue,
2019A,
Refunding,
5%,
9/01/33
........................................................
800,000
987,720
Pima
County
Regional
Transportation
Authority
,
Revenue,
2014,
5%,
6/01/24
.........................................
3,385,000
3,819,330
Revenue,
2014,
5%,
6/01/26
.........................................
7,180,000
8,090,711
Scottsdale
Municipal
Property
Corp.
,
Revenue,
2015,
Refunding,
5%,
7/01/26
.................................
2,580,000
3,152,786
Revenue,
2015,
Refunding,
5%,
7/01/27
.................................
2,000,000
2,437,580
Revenue,
2015,
Refunding,
5%,
7/01/28
.................................
3,325,000
4,045,361
134,784,575
Arkansas
0.7%
Arkansas
Development
Finance
Authority
,
Baptist
Memorial
Health
Care
Obligated
Group,
Revenue,
2020
B-1,
Refunding,
5%,
9/01/32
........................................................
3,885,000
4,832,163
Baptist
Memorial
Health
Care
Obligated
Group,
Revenue,
2020
B-1,
Refunding,
5%,
9/01/35
........................................................
4,630,000
5,681,843
Baptist
Memorial
Health
Care
Obligated
Group,
Revenue,
2020
B-1,
Refunding,
5%,
9/01/36
........................................................
3,625,000
4,428,083
Baptist
Memorial
Health
Care
Obligated
Group,
Revenue,
2020
B-1,
Refunding,
5%,
9/01/37
........................................................
1,250,000
1,521,475
Baptist
Memorial
Health
Care
Obligated
Group,
Revenue,
2020
B-1,
Refunding,
5%,
9/01/38
........................................................
1,000,000
1,213,140
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Semiannual
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)
Arkansas
(continued)
Arkansas
Development
Finance
Authority,
(continued)
Baptist
Memorial
Health
Care
Obligated
Group,
Revenue,
2020
B-1,
Refunding,
5%,
9/01/39
........................................................
$
1,000,000
$
1,209,390
City
of
Fort
Smith
,
Sales
&
Use
Tax
,
Revenue
,
2012
,
Refunding
,
5
%
,
5/01/23
......
5,000,000
5,356,900
24,242,994
California
7.6%
Bay
Area
Toll
Authority
,
Revenue,
2017
S-7,
Refunding,
4%,
4/01/31
.............................
7,000,000
8,225,980
Revenue,
2017
S-7,
Refunding,
4%,
4/01/33
.............................
5,000,000
5,816,950
California
State
Public
Works
Board
,
Revenue,
A,
5%,
10/01/20
...........................................
2,000,000
2,007,800
Revenue,
A,
5.25%,
10/01/22
.........................................
3,300,000
3,482,325
Revenue,
A,
5.25%,
10/01/23
.........................................
5,365,000
5,658,412
Revenue,
A,
5.25%,
10/01/24
.........................................
3,000,000
3,162,720
Revenue,
A,
5.25%,
10/01/25
.........................................
3,000,000
3,160,380
California
Statewide
Communities
Development
Authority
,
Emanate
Health
Obligated
Group,
Revenue,
2020
A,
5%,
4/01/35
.............
1,300,000
1,672,125
Emanate
Health
Obligated
Group,
Revenue,
2020
A,
4%,
4/01/37
.............
700,000
816,879
Emanate
Health
Obligated
Group,
Revenue,
2020
A,
4%,
4/01/38
.............
1,350,000
1,570,023
City
of
Riverside
,
Sewer,
Revenue,
2015A,
Refunding,
5%,
8/01/34
..........................
10,605,000
12,777,434
Sewer,
Revenue,
2015A,
Refunding,
5%,
8/01/35
..........................
11,000,000
13,241,580
Livermore-Amador
Valley
Water
Management
Agency
,
Revenue,
2011,
Refunding,
5%,
8/01/24
.................................
5,660,000
5,901,512
Revenue,
2011,
Refunding,
5%,
8/01/25
.................................
4,765,000
4,967,894
Los
Angeles
Department
of
Water
&
Power
,
Power
System,
Revenue,
2013A,
5%,
7/01/26
............................
11,025,000
12,240,396
Power
System,
Revenue,
2017B,
Refunding,
5%,
7/01/31
...................
8,220,000
10,351,692
Power
System,
Revenue,
2017C,
5%,
7/01/32
............................
4,615,000
5,870,834
Power
System,
Revenue,
2017C,
5%,
7/01/33
............................
3,960,000
5,015,063
Power
System,
Revenue,
2017C,
5%,
7/01/34
............................
4,080,000
5,154,101
Los
Angeles
Unified
School
District
,
GO,
2018
B-1,
5%,
7/01/32
..........................................
8,000,000
10,265,760
GO,
2020
RYQ,
5%,
7/01/35
.........................................
6,500,000
8,679,125
San
Diego
Public
Facilities
Financing
Authority
,
City
of
San
Diego
Water
Utility,
Revenue,
2020
A,
4%,
8/01/36
................
855,000
1,059,285
City
of
San
Diego
Water
Utility,
Revenue,
2020
A,
4%,
8/01/37
................
1,250,000
1,542,800
State
of
California
,
GO,
5.25%,
10/01/23
...............................................
25,050,000
26,425,746
GO,
5.25%,
10/01/24
...............................................
9,780,000
10,309,392
GO,
Refunding,
5.25%,
9/01/25
.......................................
15,000,000
15,743,400
GO,
Refunding,
5%,
10/01/25
.........................................
15,000,000
16,806,450
GO,
5.25%,
10/01/25
...............................................
5,000,000
5,267,850
GO,
5.25%,
3/01/30
................................................
10,000,000
10,039,600
GO,
Refunding,
5%,
8/01/30
.........................................
35,000,000
43,433,400
GO,
2007,
Refunding,
AGMC
Insured,
5.25%,
8/01/32
......................
10,000,000
14,340,200
275,007,108
Colorado
2.1%
City
&
County
of
Denver
,
Airport
System,
Revenue,
B,
5.25%,
11/15/26
.............................
5,000,000
5,671,450
Airport
System,
Revenue,
B,
5.25%,
11/15/27
.............................
4,250,000
4,810,618
Colorado
Health
Facilities
Authority
,
Boulder
Community
Health
Obligated
Group,
Revenue,
2020,
Refunding,
5%,
10/01/29
.......................................................
650,000
835,789
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
43
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Colorado
(continued)
Colorado
Health
Facilities
Authority,
(continued)
Boulder
Community
Health
Obligated
Group,
Revenue,
2020,
Refunding,
5%,
10/01/30
.......................................................
$
700,000
$
911,498
Boulder
Community
Health
Obligated
Group,
Revenue,
2020,
Refunding,
5%,
10/01/31
.......................................................
1,000,000
1,291,330
Boulder
Community
Health
Obligated
Group,
Revenue,
2020,
Refunding,
5%,
10/01/32
.......................................................
750,000
962,573
Boulder
Community
Health
Obligated
Group,
Revenue,
2020,
Refunding,
5%,
10/01/33
.......................................................
1,000,000
1,275,230
Boulder
Community
Health
Obligated
Group,
Revenue,
2020,
Refunding,
5%,
10/01/34
.......................................................
1,100,000
1,397,198
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-1,
Refunding,
5%,
8/01/33
2,000,000
2,493,820
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-1,
Refunding,
5%,
8/01/36
8,500,000
10,463,840
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-1,
Refunding,
4%,
8/01/37
2,250,000
2,544,210
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-1,
Refunding,
4%,
8/01/39
1,250,000
1,404,925
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-2,
Refunding,
5%,
8/01/32
2,000,000
2,507,360
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-2,
Refunding,
5%,
8/01/33
3,000,000
3,740,730
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-2,
Refunding,
5%,
8/01/34
5,500,000
6,827,975
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-2,
Refunding,
5%,
8/01/35
4,500,000
5,563,125
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-2,
Refunding,
5%,
8/01/37
2,000,000
2,453,860
Regional
Transportation
District
,
COP
,
2013A
,
Refunding
,
5
%
,
6/01/26
...........
14,000,000
15,535,380
State
of
Colorado
,
COP
,
2020
A
,
4
%
,
12/15/35
.............................
4,000,000
4,888,600
75,579,511
Connecticut
2.7%
City
of
Stamford
,
GO,
2019,
3%,
6/01/35
.............................................
3,025,000
3,312,587
GO,
2019,
3%,
6/01/36
.............................................
3,025,000
3,290,837
Connecticut
State
Health
&
Educational
Facilities
Authority
,
Hartford
HealthCare
Obligated
Group,
Revenue,
2020
A,
4%,
7/01/37
..........
2,500,000
2,884,375
Nuvance
Health
Obligated
Group,
Revenue,
2019
A,
Refunding,
5%,
7/01/32
.....
5,900,000
7,232,102
Nuvance
Health
Obligated
Group,
Revenue,
2019
A,
Refunding,
5%,
7/01/33
.....
5,000,000
6,095,200
Nuvance
Health
Obligated
Group,
Revenue,
2019
A,
Refunding,
4%,
7/01/35
.....
250,000
279,180
Nuvance
Health
Obligated
Group,
Revenue,
2019
A,
Refunding,
4%,
7/01/36
.....
4,750,000
5,281,715
State
of
Connecticut
,
GO,
2013
E,
5%,
8/15/25
............................................
11,295,000
12,754,653
GO,
2013
E,
5%,
8/15/26
............................................
18,585,000
20,911,470
GO,
2020
C,
4%,
6/01/34
............................................
1,500,000
1,793,865
GO,
2020
C,
4%,
6/01/36
............................................
1,800,000
2,131,398
Special
Tax,
2020
A,
5%,
5/01/35
......................................
4,500,000
5,791,500
Special
Tax,
2020
A,
4%,
5/01/36
......................................
3,500,000
4,107,250
Special
Tax,
A,
5%,
1/01/28
..........................................
10,000,000
11,018,500
University
of
Connecticut
,
Revenue,
2016
A,
5%,
3/15/30
........................................
3,075,000
3,674,471
Revenue,
2016
A,
5%,
3/15/31
........................................
5,025,000
5,979,951
96,539,054
Florida
8.1%
Alachua
County
Health
Facilities
Authority
,
Shands
Teaching
Hospital
&
Clinics
Obligated
Group,
Revenue,
B-1,
Refunding,
5%,
12/01/31
.......................................................
5,000,000
6,451,200
Shands
Teaching
Hospital
&
Clinics
Obligated
Group,
Revenue,
B-1,
Refunding,
5%,
12/01/32
.......................................................
1,600,000
2,046,976
Shands
Teaching
Hospital
&
Clinics
Obligated
Group,
Revenue,
B-1,
Refunding,
5%,
12/01/33
.......................................................
3,445,000
4,386,415
Shands
Teaching
Hospital
&
Clinics
Obligated
Group,
Revenue,
B-1,
Refunding,
5%,
12/01/35
.......................................................
2,350,000
2,969,343
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Semiannual
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)
Florida
(continued)
Broward
County
,
Water
&
Sewer
Utility,
Revenue,
B,
Refunding,
5%,
10/01/24
.................
$
6,000,000
$
6,585,120
Water
&
Sewer
Utility,
Revenue,
B,
Refunding,
5%,
10/01/25
.................
6,325,000
6,940,423
City
of
Clearwater
,
Water
&
Sewer
,
Revenue
,
2017
,
Refunding
,
5
%
,
12/01/33
......
5,520,000
6,897,130
City
of
Gainesville
,
Utilities
System
,
Revenue
,
2017
A
,
5
%
,
10/01/30
.............
1,500,000
1,919,505
City
of
Jacksonville
,
Revenue,
2012A,
Refunding,
5%,
10/01/28
..............................
6,000,000
6,527,400
b
Genesis
Health,
Inc.
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
11/01/39
..
1,650,000
1,866,975
City
of
Port
St.
Lucie
,
Utility
System,
Revenue,
2016,
Refunding,
4%,
9/01/30
.....................
1,500,000
1,733,355
Utility
System,
Revenue,
2016,
Refunding,
4%,
9/01/31
.....................
1,635,000
1,870,113
City
of
South
Miami
Health
Facilities
Authority,
Inc.
,
Baptist
Health
South
Florida
Obligated
Group
,
Revenue
,
2017
,
Refunding
,
4
%
,
8/15/33
...................
6,000,000
6,825,660
City
of
Tampa
,
H
Lee
Moffitt
Cancer
Center
&
Research
Institute
Obligated
Group,
Revenue,
2020
B,
4%,
7/01/38
..................................................
700,000
801,360
H
Lee
Moffitt
Cancer
Center
&
Research
Institute
Obligated
Group,
Revenue,
2020
B,
4%,
7/01/39
..................................................
500,000
570,575
H
Lee
Moffitt
Cancer
Center
&
Research
Institute
Obligated
Group,
Revenue,
2020
B,
5%,
7/01/40
..................................................
1,000,000
1,238,600
County
of
Miami-Dade
,
Aviation,
Revenue,
2010
A-1,
5%,
10/01/21
..............................
5,000,000
5,018,550
Aviation,
Revenue,
2010
A-1,
5%,
10/01/22
..............................
5,890,000
5,909,437
Aviation,
Revenue,
2010
A-1,
5.25%,
10/01/23
............................
4,875,000
4,892,062
Transit
System,
Revenue,
2012,
Pre-Refunded,
5%,
7/01/24
.................
2,250,000
2,445,930
Transit
System,
Revenue,
2012,
Pre-Refunded,
5%,
7/01/25
.................
3,000,000
3,261,240
Transit
System,
Revenue,
2012,
Pre-Refunded,
5%,
7/01/26
.................
4,000,000
4,348,320
Transit
System,
Revenue,
2012,
Pre-Refunded,
5%,
7/01/27
.................
4,000,000
4,348,320
Transit
System,
Revenue,
2019,
Refunding,
4%,
7/01/35
....................
13,890,000
16,602,995
Water
&
Sewer
System,
Revenue,
2013B,
Pre-Refunded,
5%,
10/01/27
.........
15,000,000
17,200,050
County
of
Palm
Beach
,
Water
&
Sewer
,
Revenue
,
2013
,
Refunding
,
5
%
,
10/01/28
...
1,240,000
1,416,663
Greater
Orlando
Aviation
Authority
,
Revenue,
2019
A,
5%,
10/01/34
.......................................
15,560,000
19,442,531
Revenue,
2019
A,
4%,
10/01/35
.......................................
5,000,000
5,780,850
Herons
Glen
Recreation
District
,
Special
Assessment,
2020,
Refunding,
BAM
Insured,
3%,
5/01/32
.............
185,000
198,161
Special
Assessment,
2020,
Refunding,
BAM
Insured,
3%,
5/01/33
.............
300,000
318,936
Special
Assessment,
2020,
Refunding,
BAM
Insured,
3%,
5/01/34
.............
245,000
258,333
Special
Assessment,
2020,
Refunding,
BAM
Insured,
3%,
5/01/35
.............
255,000
266,829
Special
Assessment,
2020,
Refunding,
BAM
Insured,
3%,
5/01/36
.............
260,000
270,756
JEA
Water
&
Sewer
System
,
Revenue,
2014A,
Pre-Refunded,
5%,
10/01/26
............................
1,530,000
1,784,117
Revenue,
2014A,
5%,
10/01/26
.......................................
1,455,000
1,690,914
Revenue,
2014A,
Pre-Refunded,
5%,
10/01/27
............................
5,375,000
6,267,734
Revenue,
2014A,
5%,
10/01/27
.......................................
5,130,000
5,947,824
Revenue,
2014A,
Pre-Refunded,
5%,
10/01/29
............................
1,265,000
1,475,104
Revenue,
2014A,
5%,
10/01/29
.......................................
1,205,000
1,391,522
Revenue,
2017A,
Refunding,
5%,
10/01/31
..............................
17,435,000
22,227,533
Lee
Memorial
Health
System
,
Lee
Memorial
Health
System
Obligated
Group
,
Revenue
,
A-1
,
Refunding
,
4
%
,
4/01/37
.........................................
5,000,000
5,759,450
Leon
County
School
District
,
Revenue
,
2014
,
5
%
,
9/01/25
.....................
6,040,000
6,856,487
Orange
County
Health
Facilities
Authority
,
Orlando
Health
Obligated
Group,
Revenue,
2016A,
Refunding,
5%,
10/01/28
.....
1,000,000
1,217,480
Orlando
Health
Obligated
Group,
Revenue,
2016A,
Refunding,
5%,
10/01/30
.....
2,875,000
3,468,400
Orlando
Utilities
Commission
,
Revenue,
2012A,
Refunding,
5%,
10/01/24
..............................
2,405,000
2,869,454
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
45
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Florida
(continued)
Orlando
Utilities
Commission,
(continued)
Revenue,
2012A,
Refunding,
5%,
10/01/25
..............................
$
2,000,000
$
2,467,460
Revenue,
2018
A,
5%,
10/01/33
.......................................
1,755,000
2,222,005
Orlando-Orange
County
Expressway
Authority
,
Central
Florida
Expressway
Authority
,
Revenue
,
2013B
,
Refunding
,
AGMC
Insured
,
5
%
,
7/01/24
...................
14,650,000
16,585,119
Palm
Beach
County
School
District
,
COP
,
2014B
,
5
%
,
8/01/25
..................
4,000,000
4,893,040
Palm
Beach
County
Solid
Waste
Authority
,
Revenue
,
2011
,
Refunding
,
5
%
,
10/01/23
.
17,290,000
18,175,421
State
of
Florida
,
GO,
2015E,
Refunding,
4%,
6/01/33
....................................
11,855,000
13,538,410
GO,
2017
C,
Refunding,
4%,
6/01/32
...................................
12,855,000
15,238,317
GO,
2017
C,
Refunding,
4%,
6/01/33
...................................
5,000,000
5,899,500
Tohopekaliga
Water
Authority
,
Revenue
,
2016
,
Refunding
,
4
%
,
10/01/32
..........
2,855,000
3,256,270
294,841,674
Georgia
2.0%
City
of
Atlanta
,
Airport
Passenger
Facility
Charge,
Revenue,
Sub.
Lien,
2014A,
Refunding,
5%,
1/01/27
........................................................
7,000,000
7,975,660
Airport
Passenger
Facility
Charge,
Revenue,
Sub.
Lien,
2014A,
Refunding,
5%,
1/01/28
........................................................
5,100,000
5,798,190
Water
&
Wastewater,
Revenue,
2015,
Refunding,
5%,
11/01/26
...............
5,165,000
6,240,766
Water
&
Wastewater,
Revenue,
2018
C,
Refunding,
5%,
11/01/33
..............
6,750,000
8,591,535
Water
&
Wastewater,
Revenue,
2018
C,
Refunding,
5%,
11/01/34
..............
3,000,000
3,808,950
Cobb
County
Kennestone
Hospital
Authority
,
WellStar
Health
System
Obligated
Group,
Revenue,
2020
A,
Refunding,
4%,
4/01/32
900,000
1,076,895
WellStar
Health
System
Obligated
Group,
Revenue,
2020
A,
Refunding,
4%,
4/01/33
565,000
671,587
WellStar
Health
System
Obligated
Group,
Revenue,
2020
A,
Refunding,
4%,
4/01/34
450,000
532,696
WellStar
Health
System
Obligated
Group,
Revenue,
2020
A,
Refunding,
4%,
4/01/35
865,000
1,019,878
WellStar
Health
System
Obligated
Group,
Revenue,
2020
A,
Refunding,
4%,
4/01/36
1,400,000
1,642,984
b
WellStar
Health
System
Obligated
Group,
Revenue,
2020
B,
Refunding,
4%,
4/01/32
250,000
289,903
b
WellStar
Health
System
Obligated
Group,
Revenue,
2020
B,
Refunding,
4%,
4/01/33
250,000
286,925
b
WellStar
Health
System
Obligated
Group,
Revenue,
2020
B,
Refunding,
4%,
4/01/34
275,000
313,629
b
WellStar
Health
System
Obligated
Group,
Revenue,
2020
B,
Refunding,
4%,
4/01/35
275,000
311,204
b
WellStar
Health
System
Obligated
Group,
Revenue,
2020
B,
Refunding,
4%,
4/01/36
275,000
310,291
Development
Authority
for
Fulton
County
,
Spelman
College,
Revenue,
2015,
Refunding,
5%,
6/01/28
...................
3,785,000
4,376,785
Spelman
College,
Revenue,
2015,
Refunding,
5%,
6/01/29
...................
4,385,000
5,051,564
Spelman
College,
Revenue,
2015,
Refunding,
5%,
6/01/30
...................
4,805,000
5,514,842
Gainesville
&
Hall
County
Hospital
Authority
,
Northeast
Georgia
Health
System
Obligated
Group,
Revenue,
A,
Refunding,
5%,
2/15/27
........................................................
1,750,000
2,166,098
Northeast
Georgia
Health
System
Obligated
Group,
Revenue,
A,
Refunding,
5%,
2/15/28
........................................................
2,100,000
2,582,517
Northeast
Georgia
Health
System
Obligated
Group,
Revenue,
A,
Refunding,
5%,
2/15/29
........................................................
2,000,000
2,446,500
Northeast
Georgia
Health
System
Obligated
Group,
Revenue,
A,
Refunding,
5%,
2/15/30
........................................................
1,000,000
1,217,380
Municipal
Electric
Authority
of
Georgia
,
Revenue,
2019
B,
5%,
1/01/29
........................................
500,000
638,915
Revenue,
2019
B,
5%,
1/01/30
........................................
480,000
609,902
Revenue,
2019
B,
5%,
1/01/31
........................................
700,000
884,373
Revenue,
2019
B,
5%,
1/01/32
........................................
750,000
942,158
Revenue,
2019
B,
5%,
1/01/33
........................................
1,045,000
1,305,048
Revenue,
2019
B,
5%,
1/01/34
........................................
700,000
870,744
Revenue,
2019A,
5%,
1/01/30
........................................
1,000,000
1,280,890
Revenue,
2019A,
5%,
1/01/31
........................................
600,000
764,154
Revenue,
2019A,
5%,
1/01/32
........................................
500,000
633,170
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Semiannual
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)
Georgia
(continued)
Municipal
Electric
Authority
of
Georgia,
(continued)
Revenue,
2019A,
5%,
1/01/33
........................................
$
1,000,000
$
1,258,910
71,415,043
Hawaii
0.8%
State
of
Hawaii
,
GO
,
EO
,
5
%
,
8/01/28
....................................
25,000,000
29,331,500
Illinois
1.6%
Chicago
O'Hare
International
Airport
,
Revenue,
Third
Lien
,
2010-C
,
AGMC
Insured
,
5.25
%
,
1/01/22
...................................................
5,215,000
5,235,338
Chicago
Transit
Authority
,
Revenue
,
2011
,
Refunding
,
AGMC
Insured
,
5.25
%
,
6/01/25
6,125,000
6,324,307
County
of
Cook
,
GO
,
A
,
Refunding
,
MAC
Insured
,
5.25
%
,
11/15/22
..............
12,395,000
13,106,473
Illinois
Finance
Authority
,
Northwestern
University
,
Revenue
,
2015
,
5
%
,
12/01/28
....
1,675,000
2,239,241
Metropolitan
Pier
&
Exposition
Authority
,
Revenue
,
B
,
Pre-Refunded
,
5
%
,
6/15/23
...
600,000
649,296
State
of
Illinois
,
GO,
2013
A,
AGMC
Insured,
5%,
4/01/25
................................
18,000,000
19,526,040
GO,
2014,
MAC
Insured,
5%,
2/01/26
...................................
5,650,000
6,267,432
GO,
2016,
Refunding,
5%,
2/01/26
.....................................
1,000,000
1,124,270
GO,
2017D,
3.25%,
11/01/26
.........................................
750,000
758,775
GO,
2017D,
5%,
11/01/28
...........................................
1,500,000
1,684,845
56,916,017
Indiana
0.3%
Indiana
Finance
Authority
,
State
Revolving
Fund
,
Revenue
,
2018
A
,
5
%
,
2/01/35
....
9,795,000
12,537,208
Kansas
0.3%
State
of
Kansas
,
Department
of
Transportation
,
Revenue
,
2014A
,
5
%
,
9/01/28
.....
8,000,000
9,379,600
Kentucky
1.0%
Kentucky
Economic
Development
Finance
Authority
,
CommonSpirit
Health
Obligated
Group
,
Revenue
,
2019A-1
,
Refunding
,
5
%
,
8/01/34
........................
1,000,000
1,241,450
Kentucky
Municipal
Power
Agency
,
Revenue,
2019
A,
Refunding,
5%,
9/01/31
...............................
1,500,000
1,859,190
Revenue,
2019
A,
Refunding,
5%,
9/01/32
...............................
1,600,000
1,967,520
Revenue,
2019
A,
Refunding,
5%,
9/01/33
...............................
1,000,000
1,222,160
Kentucky
State
Property
&
Building
Commission
,
Kentucky
Finance
and
Administration
Cabinet
,
Revenue
,
BAM
Insured
,
5
%
,
5/01/32
............................
2,000,000
2,514,960
Kentucky
Turnpike
Authority
,
Kentucky
Transportation
Cabinet,
Revenue,
B,
Refunding,
5%,
7/01/26
.........
2,570,000
3,142,236
Kentucky
Transportation
Cabinet,
Revenue,
B,
Refunding,
5%,
7/01/28
.........
3,000,000
3,734,850
Louisville
and
Jefferson
County
,
Metropolitan
Sewer
District
,
Revenue
,
2011
A
,
5
%
,
5/15/24
.........................................................
7,000,000
7,397,950
Paducah
Electric
Plant
Board
,
Revenue,
2016
A,
Refunding,
AGMC
Insured,
5%,
10/01/29
..................
5,500,000
6,684,315
Revenue,
2016
A,
Refunding,
AGMC
Insured,
5%,
10/01/31
..................
5,500,000
6,624,255
36,388,886
Louisiana
2.1%
East
Baton
Rouge
Sewerage
Commission
,
Revenue,
2019
A,
Refunding,
4%,
2/01/35
...............................
1,310,000
1,583,724
Revenue,
2019
A,
Refunding,
4%,
2/01/36
...............................
2,000,000
2,407,720
Revenue,
2019
B,
Refunding,
5%,
2/01/32
...............................
2,000,000
2,796,680
Jefferson
Sales
Tax
District
,
Revenue
,
2019
B
,
AGMC
Insured
,
4
%
,
12/01/36
.......
7,000,000
8,231,440
Lafayette
Consolidated
Government
,
Revenue,
2015,
Refunding,
AGMC
Insured,
5%,
11/01/25
...................
2,400,000
2,902,824
Revenue,
2015,
Refunding,
AGMC
Insured,
5%,
11/01/27
...................
3,500,000
4,201,190
Revenue,
2015,
Refunding,
AGMC
Insured,
5%,
11/01/29
...................
4,685,000
5,586,207
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
47
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Louisiana
(continued)
Louisiana
Public
Facilities
Authority
,
Ochsner
Clinic
Foundation,
Revenue,
2016,
Pre-Refunded,
5%,
5/15/29
.........
$
10,000
$
12,508
Ochsner
Clinic
Foundation,
Revenue,
2016,
5%,
5/15/29
....................
1,240,000
1,469,400
Ochsner
Clinic
Foundation,
Revenue,
2016,
Pre-Refunded,
5%,
5/15/30
.........
5,000
6,254
Ochsner
Clinic
Foundation,
Revenue,
2016,
5%,
5/15/30
....................
995,000
1,170,966
Ochsner
Clinic
Foundation,
Revenue,
2016,
Pre-Refunded,
5%,
5/15/32
.........
15,000
18,761
Ochsner
Clinic
Foundation,
Revenue,
2016,
5%,
5/15/32
....................
1,485,000
1,730,619
Ochsner
Clinic
Foundation,
Revenue,
2017,
Refunding,
5%,
5/15/28
...........
1,000,000
1,225,630
Ochsner
Clinic
Foundation,
Revenue,
2017,
Refunding,
5%,
5/15/29
...........
2,000,000
2,431,500
Ochsner
Clinic
Foundation,
Revenue,
2017,
Refunding,
5%,
5/15/30
...........
2,250,000
2,705,850
Ochsner
Clinic
Foundation,
Revenue,
2017,
Refunding,
5%,
5/15/31
...........
1,745,000
2,082,483
Ochsner
Clinic
Foundation,
Revenue,
2017,
Refunding,
5%,
5/15/32
...........
1,750,000
2,077,355
Ochsner
Clinic
Foundation,
Revenue,
2017,
Refunding,
5%,
5/15/33
...........
2,000,000
2,360,600
Tulane
University,
Revenue,
2020
A,
Refunding,
5%,
4/01/36
.................
1,750,000
2,258,532
Tulane
University,
Revenue,
2020
A,
Refunding,
5%,
4/01/37
.................
2,000,000
2,567,040
Tulane
University,
Revenue,
2020
A,
Refunding,
5%,
4/01/38
.................
3,120,000
3,984,895
c
Parish
of
St.
John
the
Baptist
,
Marathon
Oil
Corp.
,
Revenue
,
2017B-2
,
Refunding
,
Mandatory
Put
,
2.375
%
,
7/01/26
......................................
2,500,000
2,536,125
b
Port
New
Orleans
Board
of
Commissioners
,
Revenue,
2020
E,
5%,
4/01/35
........................................
1,000,000
1,249,220
Revenue,
2020
E,
5%,
4/01/36
........................................
1,495,000
1,859,182
Revenue,
2020
E,
5%,
4/01/37
........................................
1,065,000
1,322,347
Revenue,
2020
E,
5%,
4/01/38
........................................
1,000,000
1,239,690
Revenue,
2020
E,
5%,
4/01/39
........................................
1,500,000
1,856,610
State
of
Louisiana
,
GO
,
2014-C
,
Refunding
,
5
%
,
8/01/25
......................
10,000,000
11,837,600
75,712,952
Maine
0.1%
Maine
Health
&
Higher
Educational
Facilities
Authority
,
MaineHealth
Obligated
Group,
Revenue,
2020A,
5%,
7/01/35
.................
1,000,000
1,285,320
MaineHealth
Obligated
Group,
Revenue,
2020A,
4%,
7/01/36
.................
1,000,000
1,175,290
MaineHealth
Obligated
Group,
Revenue,
2020A,
4%,
7/01/37
.................
1,150,000
1,346,420
MaineHealth
Obligated
Group,
Revenue,
2020A,
4%,
7/01/38
.................
1,440,000
1,680,163
5,487,193
Maryland
2.3%
City
of
Baltimore
,
Wastewater
Utility
Fund,
Revenue,
2017
A,
5%,
7/01/29
.....................
1,000,000
1,245,910
Wastewater
Utility
Fund,
Revenue,
2017
A,
5%,
7/01/30
.....................
2,940,000
3,645,188
Wastewater
Utility
Fund,
Revenue,
2017
A,
5%,
7/01/31
.....................
2,085,000
2,573,495
Wastewater
Utility
Fund,
Revenue,
2017
A,
5%,
7/01/32
.....................
3,240,000
3,978,266
Wastewater
Utility
Fund,
Revenue,
2017
C,
Refunding,
5%,
7/01/30
............
6,450,000
8,055,341
Wastewater
Utility
Fund,
Revenue,
2017
C,
Refunding,
5%,
7/01/32
............
5,905,000
7,311,335
Wastewater
Utility
Fund,
Revenue,
Senior
Lien,
D,
Refunding,
5%,
7/01/28
......
2,790,000
3,307,712
Wastewater
Utility
Fund,
Revenue,
Senior
Lien,
D,
Refunding,
5%,
7/01/29
......
5,835,000
6,894,169
Water
Utility
Fund,
Revenue,
2017
A,
5%,
7/01/29
.........................
1,320,000
1,630,913
Water
Utility
Fund,
Revenue,
2017
A,
5%,
7/01/30
.........................
1,785,000
2,194,729
Water
Utility
Fund,
Revenue,
2017
A,
5%,
7/01/31
.........................
3,765,000
4,595,634
Water
Utility
Fund,
Revenue,
2017
A,
5%,
7/01/32
.........................
4,000,000
4,843,640
County
of
Anne
Arundel
,
GO
,
2015
,
5
%
,
4/01/29
............................
7,495,000
8,985,456
Maryland
Community
Development
Administration
,
Revenue
,
2019
B
,
Refunding
,
3
%
,
9/01/34
......................................................
5,000,000
5,372,200
Maryland
Health
&
Higher
Educational
Facilities
Authority
,
Frederick
Health,
Inc.
Obligated
Group,
Revenue,
2020,
Refunding,
3.25%,
7/01/39
500,000
502,045
Frederick
Health,
Inc.
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
7/01/40
..
300,000
336,579
University
of
Maryland
Medical
System
Obligated
Group,
Revenue,
2017
B,
Refunding,
5%,
7/01/30
............................................
8,520,000
10,473,295
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Semiannual
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)
Maryland
(continued)
Maryland
Health
&
Higher
Educational
Facilities
Authority,
(continued)
University
of
Maryland
Medical
System
Obligated
Group,
Revenue,
2017
B,
Refunding,
5%,
7/01/31
............................................
$
7,415,000
$
9,044,446
84,990,353
Massachusetts
4.1%
Commonwealth
of
Massachusetts
,
GO,
A,
Refunding,
5%,
7/01/28
.......................................
7,500,000
9,109,725
GO,
A,
Refunding,
5%,
7/01/29
.......................................
6,000,000
7,276,260
Massachusetts
Bay
Transportation
Authority
,
Revenue
,
2020
B-1
,
Refunding
,
5
%
,
7/01/34
.........................................................
7,000,000
9,380,840
Massachusetts
Clean
Water
Trust
(The)
,
Revenue,
17A,
5%,
2/01/24
..........................................
9,380,000
10,467,236
Revenue,
17A,
5%,
2/01/25
..........................................
9,750,000
10,880,122
Revenue,
2014,
Refunding,
5%,
8/01/26
.................................
10,650,000
13,429,757
Massachusetts
Development
Finance
Agency
,
Wellforce
Obligated
Group,
Revenue,
2020
C,
Refunding,
AGMC
Insured,
5%,
10/01/30
.......................................................
150,000
199,902
Wellforce
Obligated
Group,
Revenue,
2020
C,
Refunding,
AGMC
Insured,
5%,
10/01/31
.......................................................
475,000
628,791
Wellforce
Obligated
Group,
Revenue,
2020
C,
Refunding,
AGMC
Insured,
5%,
10/01/32
.......................................................
450,000
591,057
Wellforce
Obligated
Group,
Revenue,
2020
C,
Refunding,
AGMC
Insured,
5%,
10/01/33
.......................................................
525,000
685,702
Wellforce
Obligated
Group,
Revenue,
2020
C,
Refunding,
AGMC
Insured,
5%,
10/01/34
.......................................................
450,000
585,896
Massachusetts
Port
Authority
,
Revenue,
2019
C,
5%,
7/01/32
........................................
4,220,000
5,363,072
Revenue,
2019
C,
5%,
7/01/33
........................................
4,430,000
5,598,811
Revenue,
2019
C,
5%,
7/01/34
........................................
9,280,000
11,692,150
Massachusetts
School
Building
Authority
,
Revenue,
Pre-Refunded,
5%,
8/15/27
..................................
6,000,000
6,561,776
Revenue,
Senior
Lien,
Pre-Refunded,
5%,
8/15/25
.........................
10,975,000
12,001,541
Revenue,
Senior
Lien,
2012A,
Pre-Refunded,
5%,
8/15/26
...................
495,000
540,367
Massachusetts
Transportation
Trust
Fund
,
Metropolitan
Highway
System
,
Revenue,
Senior
Lien
,
2019
A
,
Refunding
,
5
%
,
1/01/35
.............................
7,000,000
8,875,370
Massachusetts
Water
Resources
Authority
,
Revenue
,
C
,
Refunding
,
5
%
,
8/01/32
....
13,920,000
17,680,070
University
of
Massachusetts
Building
Authority
,
Revenue,
2017-3,
Refunding,
5%,
11/01/31
..............................
10,035,000
12,683,537
Revenue,
2017-3,
Refunding,
5%,
11/01/32
..............................
5,000,000
6,283,550
150,515,532
Michigan
1.7%
Lansing
Board
of
Water
&
Light
,
Revenue
,
2019
A
,
5
%
,
7/01/36
.................
4,645,000
6,058,845
Lansing
School
District
,
GO,
2016
I,
5%,
5/01/30
.............................................
1,860,000
2,300,969
GO,
2016
I,
5%,
5/01/31
.............................................
2,010,000
2,480,240
GO,
2016
I,
5%,
5/01/32
.............................................
2,310,000
2,843,217
Michigan
Finance
Authority
,
Clean
Water
Revolving
Fund,
Revenue,
2012,
Pre-Refunded,
5%,
10/01/24
......
5,000,000
5,498,050
Clean
Water
Revolving
Fund,
Revenue,
2013,
Refunding,
5%,
10/01/24
.........
7,000,000
7,704,270
Trinity
Health
Corp.
Obligated
Group,
Revenue,
2016
MI,
Refunding,
5%,
12/01/34
8,200,000
9,782,928
Michigan
State
Hospital
Finance
Authority
,
Ascension
Health
Credit
Group,
Revenue,
1999B-3,
4%,
11/15/31
.............
5,100,000
6,087,513
Trinity
Health
Corp.
Obligated
Group,
Revenue,
2008C,
Refunding,
5%,
12/01/31
..
2,700,000
3,369,897
Trinity
Health
Corp.
Obligated
Group,
Revenue,
2008C,
Refunding,
5%,
12/01/32
..
1,250,000
1,551,362
Trinity
Health
Corp.
Obligated
Group,
Revenue,
2012MI,
Refunding,
5%,
12/01/24
.
8,000,000
8,591,280
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
49
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Michigan
(continued)
Michigan
State
Housing
Development
Authority
,
Revenue
,
2019
A-1
,
3
%
,
10/01/39
..
$
3,500,000
$
3,716,860
59,985,431
Missouri
1.5%
Bi-State
Development
Agency
of
the
Missouri-Illinois
Metropolitan
District
,
Revenue,
2019,
Refunding,
4%,
10/01/34
................................
4,530,000
5,393,373
Revenue,
2019,
Refunding,
4%,
10/01/35
................................
6,800,000
8,059,428
Health
&
Educational
Facilities
Authority
of
the
State
of
Missouri
,
Mercy
Health
,
Revenue
,
2018A
,
Refunding
,
5
%
,
6/01/31
...............................
12,500,000
15,887,250
Missouri
Joint
Municipal
Electric
Utility
Commission
,
Revenue,
2014A,
Refunding,
5%,
1/01/27
...............................
3,250,000
3,820,245
Revenue,
2014A,
Refunding,
5%,
1/01/28
...............................
4,500,000
5,274,360
Revenue,
2014A,
Refunding,
5%,
1/01/29
...............................
4,045,000
4,724,843
Southeast
Missouri
State
University
,
Revenue,
2020,
Refunding,
4%,
4/01/33
.................................
2,745,000
3,118,155
Revenue,
2020,
Refunding,
4%,
4/01/34
.................................
2,180,000
2,466,278
Revenue,
2020,
Refunding,
4%,
4/01/35
.................................
1,575,000
1,774,757
Revenue,
2020,
Refunding,
4%,
4/01/36
.................................
3,205,000
3,594,824
Revenue,
2020,
Refunding,
4%,
4/01/37
.................................
2,000,000
2,234,360
56,347,873
Nevada
0.2%
Washoe
County
School
District
,
GO
,
2012-A
,
Refunding
,
5
%
,
6/01/25
............
6,130,000
6,598,148
New
Hampshire
0.2%
City
of
Manchester
,
General
Airport
,
Revenue
,
2012
A
,
Refunding
,
AGMC
Insured
,
5
%
,
1/01/25
.........................................................
7,930,000
8,349,814
New
Jersey
4.5%
County
of
Hudson
,
Hudson
County
Improvement
Authority,
Revenue,
2010,
Refunding,
AGMC
Insured,
5.375%,
10/01/22
................................................
5,220,000
5,770,815
Hudson
County
Improvement
Authority,
Revenue,
2010,
Refunding,
AGMC
Insured,
5.375%,
10/01/23
................................................
5,375,000
6,207,856
Hudson
County
Improvement
Authority,
Revenue,
2010,
Refunding,
AGMC
Insured,
5.375%,
10/01/24
................................................
2,050,000
2,466,888
New
Jersey
Economic
Development
Authority
,
State
of
New
Jersey
Department
of
the
Treasury,
Revenue,
2011
EE,
Refunding,
5.25%,
9/01/24
..................................................
12,210,000
12,446,996
State
of
New
Jersey
Department
of
the
Treasury,
Revenue,
2019
LLL,
5%,
6/15/39
1,000,000
1,179,720
State
of
New
Jersey
Department
of
the
Treasury,
Revenue,
AAA,
5%,
6/15/34
....
5,000,000
5,681,300
New
Jersey
Educational
Facilities
Authority
,
State
of
New
Jersey,
Revenue,
2016
B,
5%,
9/01/36
.......................
5,000,000
5,622,750
Stevens
Institute
of
Technology,
Revenue,
2020
A,
5%,
7/01/32
...............
420,000
526,584
Stevens
Institute
of
Technology,
Revenue,
2020
A,
5%,
7/01/33
...............
680,000
847,436
Stevens
Institute
of
Technology,
Revenue,
2020
A,
5%,
7/01/34
...............
545,000
676,912
Stevens
Institute
of
Technology,
Revenue,
2020
A,
5%,
7/01/35
...............
565,000
698,673
New
Jersey
Health
Care
Facilities
Financing
Authority
,
Inspira
Health
Obligated
Group,
Revenue,
2017A,
5%,
7/01/30
................
900,000
1,099,134
Inspira
Health
Obligated
Group,
Revenue,
2017A,
5%,
7/01/31
................
1,080,000
1,312,654
RWJ
Barnabas
Health
Obligated
Group,
Revenue,
2011A,
ETM,
5%,
7/01/21
.....
20,535,000
21,342,025
New
Jersey
Higher
Education
Student
Assistance
Authority
,
Revenue,
Senior
Lien,
2020
A,
Refunding,
3.5%,
12/01/39
...................
4,300,000
4,341,624
Revenue,
Senior
Lien,
2020B,
3.5%,
12/01/39
............................
2,000,000
2,019,520
New
Jersey
Transportation
Trust
Fund
Authority
,
Revenue,
5.5%,
12/15/22
............................................
36,465,000
40,146,218
Revenue,
2012
AA,
AGMC
Insured,
5%,
6/15/26
..........................
26,650,000
28,311,894
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Semiannual
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)
New
Jersey
(continued)
Rutgers
The
State
University
of
New
Jersey
,
Revenue,
2013
J,
Pre-Refunded,
5%,
5/01/26
............................
$
5,000,000
$
5,637,300
Revenue,
2013
J,
Pre-Refunded,
5%,
5/01/27
............................
10,830,000
12,210,392
Revenue,
2013
L,
Pre-Refunded,
5%,
5/01/27
............................
5,270,000
5,941,714
164,488,405
New
York
11.4%
City
of
New
York
,
GO,
2013D,
5%,
8/01/27
............................................
10,000,000
11,102,600
GO,
2013I,
5%,
8/01/24
.............................................
10,200,000
11,579,754
GO,
2014G,
5%,
8/01/22
............................................
8,000,000
8,725,040
GO,
2014G,
5%,
8/01/23
............................................
6,860,000
7,760,169
GO,
2015C,
Refunding,
5%,
8/01/25
...................................
2,000,000
2,396,560
GO,
2015C,
Refunding,
5%,
8/01/26
...................................
10,000,000
11,939,200
GO,
2015C,
Refunding,
5%,
8/01/27
...................................
7,500,000
8,857,275
GO,
2019
E,
Refunding,
5%,
8/01/32
...................................
2,000,000
2,530,860
GO,
2019
E,
Refunding,
5%,
8/01/34
...................................
3,500,000
4,397,050
b
GO,
2021B,
Refunding,
5%,
11/01/31
...................................
11,120,000
14,694,635
GO,
A-1
2017
A,
5%,
8/01/29
.........................................
10,000,000
12,237,600
Erie
County
Industrial
Development
Agency
(The)
,
Buffalo
City
School
District,
Revenue,
2012A,
Refunding,
5%,
5/01/23
..........
6,235,000
6,704,932
Buffalo
City
School
District,
Revenue,
2012A,
Refunding,
5%,
5/01/24
..........
8,000,000
8,598,800
Long
Island
Power
Authority
,
Revenue
,
2012B
,
5
%
,
9/01/26
....................
5,000,000
5,417,150
Metropolitan
Transportation
Authority
,
Revenue,
2003
A,
AGMC
Insured,
5.5%,
11/15/20
.........................
4,365,000
4,403,892
Revenue,
2012F,
Refunding,
5%,
11/15/25
...............................
25,000,000
26,102,500
Revenue,
2013A,
Pre-Refunded,
5%,
11/15/27
............................
3,500,000
3,954,650
c
Revenue,
2015
A-2,
Mandatory
Put,
5%,
5/15/30
..........................
7,000,000
8,115,310
Revenue,
2016A-2,
Refunding,
5%,
11/15/25
.............................
21,090,000
23,128,771
Revenue,
2017
B,
Refunding,
5%,
11/15/26
..............................
2,140,000
2,380,857
Revenue,
2019
D-1,
5%,
9/01/22
......................................
10,000,000
10,443,600
Nassau
County
Local
Economic
Assistance
Corp.
,
Catholic
Health
Services
of
Long
Island
Obligated
Group
,
Revenue
,
2011
,
Refunding
,
5
%
,
7/01/21
..............
9,000,000
9,316,800
New
York
City
Transitional
Finance
Authority
,
Future
Tax
Secured,
Revenue,
2003
A-1,
Refunding,
5%,
11/01/23
.............
11,500,000
12,146,645
Future
Tax
Secured,
Revenue,
2011C,
5%,
11/01/23
.......................
12,805,000
12,907,824
Future
Tax
Secured,
Revenue,
2012
C,
Refunding,
5%,
11/01/24
..............
7,620,000
8,047,559
Future
Tax
Secured,
Revenue,
2014D-1,
5%,
2/01/27
.......................
8,740,000
10,048,203
Future
Tax
Secured,
Revenue,
2014D-1,
5%,
2/01/28
.......................
5,000,000
5,739,250
Future
Tax
Secured,
Revenue,
2020C,
4%,
5/01/37
........................
1,400,000
1,670,088
New
York
State
Dormitory
Authority
,
Revenue,
2009A,
AGMC
Insured,
5%,
10/01/24
...........................
350,000
351,298
City
University
of
New
York
(The),
Revenue,
2005
A,
NATL
Insured,
5.5%,
7/01/23
.
7,915,000
9,103,675
Northwell
Health
Obligated
Group,
Revenue,
2015A,
Refunding,
5%,
5/01/29
.....
10,000,000
11,600,200
State
of
New
York
Personal
Income
Tax,
Revenue,
2012A,
Refunding,
5%,
12/15/27
10,000,000
11,016,400
State
of
New
York
Personal
Income
Tax,
Revenue,
2014E,
Refunding,
5%,
2/15/30
5,000,000
5,902,200
State
of
New
York
Personal
Income
Tax,
Revenue,
2015A,
Refunding,
5%,
3/15/28
7,185,000
8,563,155
State
of
New
York
Personal
Income
Tax,
Revenue,
2018A,
Pre-Refunded,
5%,
3/15/32
........................................................
5,000
6,784
State
of
New
York
Personal
Income
Tax,
Revenue,
2018A,
5%,
3/15/32
.........
9,995,000
12,758,118
State
of
New
York
Personal
Income
Tax,
Revenue,
2019
D,
Refunding,
4%,
2/15/36
10,900,000
13,003,809
State
of
New
York
Sales
Tax,
Revenue,
2018
E,
Refunding,
5%,
3/15/32
........
10,000,000
12,808,300
State
University
Construction
Fund,
Revenue,
2012A,
5%,
5/15/24
.............
7,000,000
7,486,430
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
51
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
New
York
(continued)
New
York
State
Thruway
Authority
,
Revenue
,
I
,
Pre-Refunded
,
5
%
,
1/01/26
........
$
10,000,000
$
10,643,000
New
York
State
Urban
Development
Corp.
,
State
of
New
York
Personal
Income
Tax
,
Revenue
,
2013D
,
5
%
,
3/15/24
........................................
10,000,000
11,165,100
Port
Authority
of
New
York
&
New
Jersey
,
Revenue,
2014,
5%,
9/01/34
.........................................
2,500,000
3,136,150
Revenue,
2014,
5%,
9/01/35
.........................................
3,075,000
3,837,754
Revenue,
2018,
5%,
11/01/39
........................................
3,000,000
3,701,130
Revenue,
221,
4%,
7/15/36
..........................................
2,180,000
2,514,521
Suffolk
County
Economic
Development
Corp.
,
Catholic
Health
Services
of
Long
Island
Obligated
Group
,
Revenue
,
2011
,
5
%
,
7/01/22
............................
10,000,000
10,351,100
Triborough
Bridge
&
Tunnel
Authority
,
Revenue
,
B
,
Refunding
,
5
%
,
11/15/30
.......
8,960,000
11,184,230
Troy
Capital
Resource
Corp.
,
Rensselaer
Polytechnic
Institute,
Revenue,
2020A,
Refunding,
5%,
9/01/28
......
1,300,000
1,604,772
Rensselaer
Polytechnic
Institute,
Revenue,
2020A,
Refunding,
5%,
9/01/30
......
2,900,000
3,683,145
Rensselaer
Polytechnic
Institute,
Revenue,
2020A,
Refunding,
5%,
9/01/34
......
4,175,000
5,156,250
414,925,095
North
Carolina
0.9%
City
of
Charlotte
,
Water
&
Sewer
System
,
Revenue
,
2015
,
Refunding
,
5
%
,
7/01/27
..
10,000,000
12,152,200
County
of
Buncombe
,
Revenue
,
A
,
5
%
,
6/01/28
.............................
5,000,000
5,871,550
North
Carolina
Eastern
Municipal
Power
Agency
,
Revenue
,
2010-A
,
ETM,
5
%
,
1/01/21
10,000,000
10,153,800
North
Carolina
State
Education
Assistance
Authority
,
Revenue,
Senior
Lien,
2020A,
5%,
6/01/25
...............................
125,000
142,000
Revenue,
Senior
Lien,
2020A,
5%,
6/01/26
...............................
300,000
346,308
Revenue,
Senior
Lien,
2020A,
5%,
6/01/27
...............................
450,000
526,765
Revenue,
Senior
Lien,
2020A,
5%,
6/01/28
...............................
500,000
587,950
Revenue,
Senior
Lien,
2020A,
5%,
6/01/29
...............................
350,000
418,457
Revenue,
Senior
Lien,
2020A,
3.125%,
6/01/39
...........................
1,065,000
1,046,000
31,245,030
Ohio
6.4%
American
Municipal
Power,
Inc.
,
Revenue
,
2019
B
,
Refunding
,
5
%
,
2/15/35
........
31,270,000
40,576,577
City
of
Akron
,
Community
Learning
Center,
Revenue,
2012
A,
Refunding,
5%,
12/01/24
........
5,265,000
5,687,306
Community
Learning
Center,
Revenue,
2012
A,
Refunding,
5%,
12/01/25
........
6,645,000
7,173,145
Community
Learning
Center,
Revenue,
2012
A,
Refunding,
5%,
12/01/26
........
8,240,000
8,887,334
City
of
Cincinnati
,
GO,
2014A,
Pre-Refunded,
5%,
12/01/25
................................
2,000,000
2,168,080
GO,
2014A,
Pre-Refunded,
5%,
12/01/27
................................
2,000,000
2,168,080
GO,
2014A,
Pre-Refunded,
5%,
12/01/28
................................
2,350,000
2,547,494
City
of
Cleveland
,
Airport
System,
Revenue,
2012A,
Pre-Refunded,
AGMC
Insured,
5%,
1/01/25
....
5,000,000
5,320,100
Airport
System,
Revenue,
2012A,
Pre-Refunded,
AGMC
Insured,
5%,
1/01/26
....
5,000,000
5,320,100
City
of
Toledo
,
Water
System,
Revenue,
2013,
Refunding,
5%,
11/15/25
....................
4,000,000
4,478,640
Water
System,
Revenue,
2013,
Refunding,
5%,
11/15/26
....................
6,140,000
6,865,871
Water
System,
Revenue,
2013,
Refunding,
5%,
11/15/27
....................
6,450,000
7,214,390
Water
System,
Revenue,
2013,
Refunding,
5%,
11/15/28
....................
6,570,000
7,346,705
County
of
Cuyahoga
,
Revenue,
2010F,
5%,
12/01/20
.......................................
7,000,000
7,080,710
Revenue,
2010F,
5%,
12/01/21
.......................................
7,300,000
7,383,950
County
of
Hamilton
,
Sewer
System,
Revenue,
2013A,
Refunding,
5%,
12/01/24
..................
2,500,000
2,880,150
Sewer
System,
Revenue,
2013A,
Refunding,
5%,
12/01/25
..................
2,400,000
2,760,720
Sewer
System,
Revenue,
2013A,
Refunding,
5%,
12/01/26
..................
4,000,000
4,594,200
Sewer
System,
Revenue,
2013A,
Refunding,
5%,
12/01/27
..................
5,000,000
5,739,250
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Semiannual
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)
Ohio
(continued)
County
of
Hamilton,
(continued)
Sewer
System,
Revenue,
2013A,
Refunding,
5%,
12/01/28
..................
$
3,000,000
$
3,441,450
Kent
State
University
,
Revenue,
2012
A,
Pre-Refunded,
5%,
5/01/23
............................
1,200,000
1,296,048
Revenue,
2012
A,
Pre-Refunded,
5%,
5/01/24
............................
1,500,000
1,620,060
Revenue,
2012
A,
Pre-Refunded,
5%,
5/01/25
............................
1,500,000
1,620,060
Revenue,
2012
A,
Pre-Refunded,
5%,
5/01/26
............................
1,600,000
1,728,064
Northeast
Ohio
Regional
Sewer
District
,
Revenue
,
2019
,
Refunding
,
4
%
,
11/15/36
..
4,250,000
5,142,585
Ohio
State
Building
Authority
,
Revenue
,
2010-C
,
Pre-Refunded
,
5
%
,
10/01/22
......
5,780,000
5,802,715
Ohio
Turnpike
&
Infrastructure
Commission
,
Revenue
,
1998
A
,
Refunding
,
NATL
Insured
,
5.5
%
,
2/15/24
..............................................
10,000,000
11,289,000
Ohio
Water
Development
Authority
,
Revenue,
2019,
5%,
12/01/35
........................................
3,000,000
3,988,380
Revenue,
2019,
5%,
12/01/36
........................................
5,650,000
7,480,318
Water
Pollution
Control
Loan
Fund,
Revenue,
2017
A,
5%,
12/01/31
............
10,000,000
12,648,800
Water
Pollution
Control
Loan
Fund,
Revenue,
2019
B,
Refunding,
3%,
12/01/33
...
4,000,000
4,575,160
Water
Pollution
Control
Loan
Fund,
Revenue,
2019
B,
Refunding,
3%,
12/01/34
...
6,470,000
7,316,923
State
of
Ohio
,
GO,
R,
Pre-Refunded,
5%,
5/01/26
....................................
11,000,000
12,847,340
GO,
R,
Pre-Refunded,
5%,
5/01/27
....................................
5,000,000
5,839,700
GO,
R,
Pre-Refunded,
5%,
5/01/28
....................................
9,100,000
10,628,254
233,457,659
Oregon
4.3%
City
of
Portland
,
Water
System
,
Revenue,
Second
Lien
,
2013
A
,
Refunding
,
5
%
,
10/01/25
........................................................
5,000,000
5,609,050
Clackamas
County
School
District
No.
12
North
Clackamas
,
GO
,
B
,
5
%
,
6/15/32
....
3,725,000
4,688,620
Hillsboro
School
District
No.
1J
,
GO,
2020,
4%,
6/15/34
.............................................
1,295,000
1,607,121
GO,
2020,
4%,
6/15/35
.............................................
1,250,000
1,544,325
GO,
2020,
4%,
6/15/36
.............................................
2,605,000
3,203,108
GO,
2020,
4%,
6/15/37
.............................................
4,370,000
5,330,307
GO,
2020,
4%,
6/15/38
.............................................
4,575,000
5,561,096
Medford
Hospital
Facilities
Authority
,
Asante
Health
System
Obligated
Group,
Revenue,
2020A,
Refunding,
5%,
8/15/34
1,100,000
1,434,939
Asante
Health
System
Obligated
Group,
Revenue,
2020A,
Refunding,
5%,
8/15/35
800,000
1,038,704
Asante
Health
System
Obligated
Group,
Revenue,
2020A,
Refunding,
5%,
8/15/36
1,300,000
1,680,055
Oregon
State
Facilities
Authority
,
Samaritan
Health
Services,
Inc.
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
10/01/25
.......................................................
425,000
501,972
Samaritan
Health
Services,
Inc.
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
10/01/26
.......................................................
150,000
181,064
Samaritan
Health
Services,
Inc.
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
10/01/28
.......................................................
325,000
405,603
Samaritan
Health
Services,
Inc.
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
10/01/29
.......................................................
600,000
755,328
Samaritan
Health
Services,
Inc.
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
10/01/35
.......................................................
275,000
341,132
Salem
Hospital
Facility
Authority
,
Salem
Health
Obligated
Group,
Revenue,
2019
A,
Refunding,
5%,
5/15/33
.......
9,440,000
11,966,049
Salem
Health
Obligated
Group,
Revenue,
2019
A,
Refunding,
5%,
5/15/34
.......
3,780,000
4,775,312
Salem
Health
Obligated
Group,
Revenue,
2019
A,
Refunding,
5%,
5/15/35
.......
9,010,000
11,322,777
State
of
Oregon
,
Department
of
Transportation,
Revenue,
Senior
Lien,
2014A,
Refunding,
5%,
11/15/27
.......................................................
3,000,000
3,563,370
Department
of
Transportation,
Revenue,
Senior
Lien,
2014A,
Refunding,
5%,
11/15/28
.......................................................
3,500,000
4,149,250
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
53
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Oregon
(continued)
State
of
Oregon,
(continued)
Department
of
Transportation,
Revenue,
Sub.
Lien,
2019A,
Refunding,
5%,
11/15/35
$
17,980,000
$
23,752,659
Department
of
Transportation,
Revenue,
Sub.
Lien,
2019A,
Refunding,
5%,
11/15/36
15,805,000
20,792,426
Department
of
Transportation,
Revenue,
Sub.
Lien,
2019A,
Refunding,
4%,
11/15/42
18,130,000
21,371,100
Washington
&
Multnomah
Counties
School
District
No.
48J
Beaverton
,
GO,
B,
Pre-Refunded,
5%,
6/15/27
.....................................
5,000,000
5,896,450
GO,
B,
Pre-Refunded,
5%,
6/15/28
.....................................
5,000,000
5,896,450
GO,
B,
Pre-Refunded,
5%,
6/15/29
.....................................
7,500,000
8,844,675
156,212,942
Pennsylvania
3.3%
Allegheny
County
Hospital
Development
Authority
,
UPMC
Obligated
Group
,
Revenue
,
2019
A
,
Refunding
,
5
%
,
7/15/34
.......................................
5,000,000
6,323,000
City
of
Philadelphia
,
Water
&
Wastewater,
Revenue,
2017
B,
Refunding,
5%,
11/01/31
..............
5,750,000
7,281,167
Water
&
Wastewater,
Revenue,
2020A,
Refunding,
5%,
11/01/36
..............
1,000,000
1,322,020
Water
&
Wastewater,
Revenue,
2020A,
Refunding,
5%,
11/01/37
..............
1,500,000
1,972,545
Water
&
Wastewater,
Revenue,
2020A,
Refunding,
5%,
11/01/38
..............
2,000,000
2,619,020
Commonwealth
Financing
Authority
,
Commonwealth
of
Pennsylvania
Department
of
Community
&
Economic
Development,
Revenue,
2010C-1,
AGMC
Insured,
5%,
6/01/22
..............
4,130,000
4,145,405
Commonwealth
of
Pennsylvania
Department
of
Community
&
Economic
Development,
Revenue,
2010C-1,
AGMC
Insured,
5%,
6/01/23
..............
4,345,000
4,361,120
Commonwealth
of
Pennsylvania
,
GO,
Second
Series
,
2013
,
5
%
,
10/15/26
.........
13,375,000
15,290,434
Geisinger
Authority
,
Geisinger
Health
System
Obligated
Group
,
Revenue
,
2020A
,
Refunding
,
4
%
,
4/01/39
.............................................
3,500,000
4,080,545
Lancaster
County
Solid
Waste
Management
Authority
,
Revenue,
2013
A,
5.25%,
12/15/25
....................................
5,345,000
6,197,528
Revenue,
2013
A,
5.25%,
12/15/26
....................................
5,835,000
6,761,481
Pennsylvania
Economic
Development
Financing
Authority
,
UPMC
Obligated
Group,
Revenue,
2020
A,
5%,
4/15/33
.....................
2,100,000
2,689,848
UPMC
Obligated
Group,
Revenue,
2020
A,
5%,
4/15/34
.....................
1,750,000
2,232,825
UPMC
Obligated
Group,
Revenue,
2020
A,
5%,
4/15/35
.....................
1,450,000
1,842,704
UPMC
Obligated
Group,
Revenue,
2020
A,
4%,
4/15/38
.....................
3,245,000
3,747,780
UPMC
Obligated
Group,
Revenue,
2020
A,
4%,
4/15/39
.....................
3,685,000
4,242,393
Pennsylvania
Higher
Educational
Facilities
Authority
,
Drexel
University,
Revenue,
2020
A,
Refunding,
AGMC
Insured,
5%,
5/01/38
.....
6,950,000
8,818,994
University
of
Pennsylvania
Health
System
Obligated
Group
(The),
Revenue,
2017
A,
4%,
8/15/34
....................................................
5,895,000
6,794,341
Pennsylvania
State
University
(The)
,
Revenue
,
A
,
5
%
,
9/01/30
.................
4,000,000
5,080,080
Pennsylvania
Turnpike
Commission
,
Revenue,
2011,
Pre-Refunded,
5%,
12/01/24
.............................
5,000,000
5,293,600
Revenue,
2011,
Pre-Refunded,
5%,
12/01/25
.............................
10,000,000
10,587,200
Philadelphia
Authority
for
Industrial
Development
,
MaST
Community
Charter
School
II,
Revenue,
2020
A,
5%,
8/01/30
............
200,000
239,824
MaST
Community
Charter
School
II,
Revenue,
2020
A,
5%,
8/01/40
............
300,000
347,214
Philadelphia
Gas
Works
Co.
,
Revenue,
15th,
Refunding,
5%,
8/01/30
.................................
2,000,000
2,445,100
Revenue,
15th,
Refunding,
5%,
8/01/31
.................................
4,030,000
4,903,301
119,619,469
Rhode
Island
0.2%
State
of
Rhode
Island
,
GO,
2019C,
5%,
1/15/32
............................................
4,500,000
5,836,500
GO,
2019C,
4%,
1/15/34
............................................
1,520,000
1,813,102
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Semiannual
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)
Rhode
Island
(continued)
State
of
Rhode
Island,
(continued)
GO,
2019C,
4%,
1/15/35
............................................
$
600,000
$
713,382
8,362,984
South
Carolina
0.7%
City
of
Anderson
,
Water
&
Sewer,
Revenue,
2012,
Refunding,
AGMC
Insured,
5%,
7/01/22
........
2,555,000
2,779,968
Water
&
Sewer,
Revenue,
2012,
Refunding,
AGMC
Insured,
5%,
7/01/23
........
2,695,000
2,928,656
Water
&
Sewer,
Revenue,
2012,
Refunding,
AGMC
Insured,
5%,
7/01/24
........
2,825,000
3,069,927
Water
&
Sewer,
Revenue,
2012,
Refunding,
AGMC
Insured,
5%,
7/01/25
........
2,965,000
3,221,473
County
of
Berkeley
,
Combined
Utility
System,
Revenue,
2013,
Refunding,
5%,
6/01/25
.............
3,665,000
4,143,906
Combined
Utility
System,
Revenue,
2013,
Refunding,
5%,
6/01/26
.............
1,700,000
1,922,139
South
Carolina
Jobs-Economic
Development
Authority
,
Prisma
Health
Obligated
Group
,
Revenue
,
2018
A
,
Refunding
,
5
%
,
5/01/33
...............................
6,000,000
7,259,280
25,325,349
Tennessee
1.0%
Chattanooga
Health
Educational
&
Housing
Facility
Board
,
CommonSpirit
Health
Obligated
Group,
Revenue,
2019A-1,
Refunding,
5%,
8/01/31
1,500,000
1,893,885
CommonSpirit
Health
Obligated
Group,
Revenue,
2019A-1,
Refunding,
5%,
8/01/34
1,000,000
1,241,450
CommonSpirit
Health
Obligated
Group,
Revenue,
2019A-1,
Refunding,
5%,
8/01/35
1,250,000
1,545,312
CommonSpirit
Health
Obligated
Group,
Revenue,
2019A-1,
Refunding,
4%,
8/01/36
1,000,000
1,134,640
City
of
Memphis
,
GO
,
2012A
,
Refunding
,
5
%
,
4/01/22
........................
15,805,000
17,014,715
Metropolitan
Government
of
Nashville
&
Davidson
County
,
Water
&
Sewer,
Revenue,
2013,
5%,
7/01/26
.............................
1,675,000
1,900,355
Water
&
Sewer,
Revenue,
2013,
5%,
7/01/27
.............................
1,800,000
2,039,436
Tennessee
State
School
Bond
Authority
,
Revenue
,
2015B
,
5
%
,
11/01/28
..........
8,180,000
10,051,829
36,821,622
Texas
11.7%
City
of
Austin
,
Water
&
Wastewater
System,
Revenue,
2012,
Refunding,
5%,
11/15/26
.........
4,835,000
5,332,570
Water
&
Wastewater
System,
Revenue,
2012,
Refunding,
5%,
11/15/27
.........
4,000,000
4,407,880
Water
&
Wastewater
System,
Revenue,
2013
A,
Refunding,
5%,
11/15/28
.......
5,000,000
5,605,450
City
of
Dallas
,
Waterworks
&
Sewer
System,
Revenue,
2017,
Refunding,
5%,
10/01/30
........
1,500,000
1,931,385
Waterworks
&
Sewer
System,
Revenue,
2017,
Refunding,
5%,
10/01/31
........
2,500,000
3,210,850
Waterworks
&
Sewer
System,
Revenue,
2017,
Refunding,
5%,
10/01/32
........
1,000,000
1,279,250
City
of
El
Paso
,
GO,
2020
A,
Refunding,
4%,
8/15/34
...................................
1,000,000
1,223,040
GO,
2020
A,
Refunding,
4%,
8/15/35
...................................
1,000,000
1,219,510
GO,
2020
A,
Refunding,
4%,
8/15/36
...................................
1,000,000
1,216,050
City
of
Fort
Worth
,
GO,
2012,
Refunding,
5%,
3/01/25
.....................................
6,000,000
6,404,460
GO,
2012,
Refunding,
5%,
3/01/26
.....................................
6,790,000
7,241,399
City
of
Houston
,
Combined
Utility
System,
Revenue,
First
Lien,
2014
C,
Refunding,
5%,
5/15/24
...
5,000,000
5,871,650
Combined
Utility
System,
Revenue,
First
Lien,
2014
C,
Refunding,
5%,
5/15/26
...
19,690,000
23,003,433
Combined
Utility
System,
Revenue,
First
Lien,
2017
B,
Refunding,
5%,
11/15/34
..
3,250,000
4,117,458
Combined
Utility
System,
Revenue,
First
Lien,
2017
B,
Refunding,
5%,
11/15/35
..
4,500,000
5,680,440
City
of
San
Antonio
,
Electric
&
Gas
Systems,
Revenue,
2012,
Refunding,
5.25%,
2/01/25
...........
27,000,000
32,793,390
Electric
&
Gas
Systems,
Revenue,
2015,
Refunding,
5%,
2/01/27
..............
10,415,000
12,877,314
Electric
&
Gas
Systems,
Revenue,
Junior
Lien,
2019,
Refunding,
5%,
2/01/35
....
4,400,000
5,855,080
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
55
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Texas
(continued)
Clear
Creek
Independent
School
District
,
GO,
2012B,
Refunding,
5%,
2/15/25
....................................
$
11,370,000
$
12,141,341
GO,
2012B,
Refunding,
5%,
2/15/26
....................................
12,060,000
12,876,341
County
of
Williamson
,
GO,
2012,
Refunding,
5%,
2/15/23
.....................................
6,235,000
6,667,460
GO,
2012,
Refunding,
5%,
2/15/25
.....................................
13,780,000
14,725,308
Dallas/Fort
Worth
International
Airport
,
Revenue,
2013D,
Refunding,
5.25%,
11/01/27
............................
5,000,000
5,683,750
Revenue,
2013D,
Refunding,
5.25%,
11/01/28
............................
2,100,000
2,383,647
b
Ector
County
Hospital
District
,
GO,
2020,
Refunding,
5%,
9/15/29
.....................................
800,000
987,384
GO,
2020,
Refunding,
5%,
9/15/30
.....................................
745,000
930,185
GO,
2020,
Refunding,
5%,
9/15/31
.....................................
450,000
559,102
GO,
2020,
Refunding,
5%,
9/15/32
.....................................
600,000
740,904
GO,
2020,
Refunding,
5%,
9/15/33
.....................................
650,000
797,485
GO,
2020,
Refunding,
4%,
9/15/34
.....................................
650,000
724,269
GO,
2020,
Refunding,
4%,
9/15/35
.....................................
700,000
777,490
El
Paso
Independent
School
District
,
GO,
2015,
Pre-Refunded,
PSF
Guaranty,
5%,
8/15/27
......................
5,460,000
6,479,437
GO,
2015,
Pre-Refunded,
PSF
Guaranty,
5%,
8/15/28
......................
2,500,000
2,966,775
Harris
County
Toll
Road
Authority
(The)
,
Revenue,
Senior
Lien,
2018
A,
Refunding,
5%,
8/15/32
.....................
2,500,000
3,161,600
Revenue,
Senior
Lien,
2018
A,
Refunding,
5%,
8/15/33
.....................
2,500,000
3,147,050
Lower
Colorado
River
Authority
,
LCRA
Transmission
Services
Corp.,
Revenue,
2011A,
Refunding,
5%,
5/15/24
....
6,000,000
6,193,920
LCRA
Transmission
Services
Corp.,
Revenue,
2011B,
Refunding,
5%,
5/15/24
....
10,620,000
10,963,238
Metropolitan
Transit
Authority
of
Harris
County
,
Sales
&
Use
Tax,
Revenue,
2014,
Pre-Refunded,
5%,
11/01/26
...............
2,000,000
2,387,760
Sales
&
Use
Tax,
Revenue,
2014,
Pre-Refunded,
5%,
11/01/27
...............
2,000,000
2,387,760
Sales
&
Use
Tax,
Revenue,
2014,
5%,
11/01/28
...........................
2,000,000
2,386,140
North
Texas
Tollway
Authority
,
North
Texas
Tollway
System,
Revenue,
First
Tier,
A,
Refunding,
4%,
1/01/33
.....
5,000,000
5,757,000
Special
Projects
System,
Revenue,
2011D,
Pre-Refunded,
5%,
9/01/24
.........
12,000,000
12,577,200
Northwest
Independent
School
District
,
GO,
2015A,
Pre-Refunded,
PSF
Guaranty,
5%,
2/15/28
.....................
4,815,000
5,812,860
GO,
2015A,
Pre-Refunded,
PSF
Guaranty,
5%,
2/15/29
.....................
7,015,000
8,468,789
Permanent
University
Fund
,
University
of
Texas
System
,
Revenue
,
2014
B
,
Refunding
,
5
%
,
7/01/27
......................................................
10,000,000
11,668,100
San
Angelo
Independent
School
District
,
GO
,
A
,
Pre-Refunded
,
PSF
Guaranty
,
5
%
,
2/15/28
.........................................................
5,220,000
6,075,819
San
Antonio
Water
System
,
Revenue,
Junior
Lien,
2014
A,
Refunding,
5%,
5/15/24
......................
1,500,000
1,726,605
Revenue,
Junior
Lien,
2014
A,
Refunding,
5%,
5/15/26
......................
2,200,000
2,527,030
Revenue,
Junior
Lien,
2014
A,
Refunding,
5%,
5/15/28
......................
2,000,000
2,291,760
Revenue,
Junior
Lien,
2014
A,
Refunding,
5%,
5/15/29
......................
1,000,000
1,145,540
Texas
Transportation
Commission
,
State
Highway
Fund,
Revenue,
First
Tier,
2014-A,
Refunding,
5%,
4/01/23
.......
20,000,000
22,441,800
State
Highway
Fund,
Revenue,
First
Tier,
2014-A,
Refunding,
5%,
4/01/24
.......
20,000,000
23,359,400
State
Highway
Fund,
Revenue,
First
Tier,
2014-A,
Refunding,
5%,
4/01/25
.......
20,000,000
23,211,800
Texas
Water
Development
Board
,
State
Water
Implementation
Revenue
Fund
for
Texas,
Revenue,
2017
A,
5%,
10/15/31
.......................................................
12,585,000
16,168,579
State
Water
Implementation
Revenue
Fund
for
Texas,
Revenue,
2018
A,
4%,
10/15/34
.......................................................
5,800,000
6,981,054
State
Water
Implementation
Revenue
Fund
for
Texas,
Revenue,
2018
B,
4%,
10/15/36
.......................................................
10,000,000
12,074,600
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Semiannual
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)
Texas
(continued)
Texas
Water
Development
Board,
(continued)
State
Water
Implementation
Revenue
Fund
for
Texas,
Revenue,
2019
A,
4%,
10/15/36
.......................................................
$
4,000,000
$
4,891,520
University
of
Houston
,
Revenue,
Pre-Refunded,
5%,
2/15/27
..................................
5,000,000
5,107,530
Revenue,
2020
A,
Refunding,
3%,
2/15/36
...............................
10,560,000
11,490,864
Revenue,
2020
A,
Refunding,
3%,
2/15/37
...............................
10,885,000
11,794,660
424,911,465
Utah
0.5%
Utah
State
Board
of
Regents
,
Revenue,
2010EE-2,
5%,
11/01/20
.....................................
9,000,000
9,059,850
Revenue,
2010EE-2,
5%,
11/01/21
.....................................
9,000,000
9,060,390
18,120,240
Virginia
2.9%
City
of
Norfolk
,
Water,
Revenue,
2012,
5%,
11/01/24
...................................
95,000
102,491
Water,
Revenue,
2012,
5%,
11/01/25
...................................
90,000
97,065
City
of
Richmond
,
Public
Utility
,
Revenue
,
2016
A
,
Refunding
,
5
%
,
1/15/32
........
10,000,000
12,332,100
Virginia
College
Building
Authority
,
Revenue
,
2015
D
,
5
%
,
2/01/25
...............
7,405,000
8,941,834
Virginia
Commonwealth
Transportation
Board
,
Revenue
,
2019
,
3
%
,
5/15/36
.......
9,460,000
10,436,934
Virginia
Public
Building
Authority
,
Revenue,
B,
Pre-Refunded,
4%,
8/01/29
................................
1,075,000
1,301,653
Revenue,
B,
4%,
8/01/29
............................................
12,060,000
14,261,553
Virginia
Public
School
Authority
,
Revenue,
2014C,
5%,
8/01/27
........................................
4,460,000
5,251,739
County
of
Prince
William,
Revenue,
2019
A,
3%,
10/01/37
...................
5,405,000
6,036,683
Virginia
Resources
Authority
,
Clean
Water
Revolving
Fund,
Revenue,
2014B,
Refunding,
5%,
10/01/26
........
26,155,000
31,217,823
Clean
Water
Revolving
Fund,
Revenue,
2015,
Refunding,
5%,
10/01/28
.........
11,950,000
14,770,200
104,750,075
Washington
4.1%
City
of
Seattle
,
Drainage
&
Wastewater,
Revenue,
2014,
Refunding,
5%,
5/01/24
..............
5,230,000
6,134,581
Drainage
&
Wastewater,
Revenue,
2014,
Refunding,
5%,
5/01/25
..............
5,500,000
6,449,080
Drainage
&
Wastewater,
Revenue,
2014,
Refunding,
5%,
5/01/26
..............
2,995,000
3,504,629
Drainage
&
Wastewater,
Revenue,
2014,
Refunding,
5%,
5/01/27
..............
3,150,000
3,680,964
Municipal
Light
&
Power,
Revenue,
2017
C,
Refunding,
4%,
9/01/34
............
5,300,000
6,246,951
County
of
King
,
Sewer,
Revenue,
2014B,
Refunding,
5%,
7/01/25
..........................
1,200,000
1,413,672
Sewer,
Revenue,
2014B,
Refunding,
5%,
7/01/26
..........................
1,200,000
1,413,168
Sewer,
Revenue,
2014B,
Refunding,
5%,
7/01/27
..........................
1,900,000
2,237,516
Sewer,
Revenue,
2014B,
Refunding,
5%,
7/01/28
..........................
3,050,000
3,587,990
Sewer,
Revenue,
2014B,
Refunding,
5%,
7/01/29
..........................
2,600,000
3,054,246
Energy
Northwest
,
Bonneville
Power
Administration,
Revenue,
2014-A,
Refunding,
5%,
7/01/22
.....
3,250,000
3,536,162
Bonneville
Power
Administration,
Revenue,
2019
A,
Refunding,
5%,
7/01/36
......
7,000,000
9,137,450
Bonneville
Power
Administration,
Revenue,
A,
Refunding,
5%,
7/01/23
..........
3,500,000
3,970,890
Bonneville
Power
Administration,
Revenue,
A,
Refunding,
5%,
7/01/24
..........
1,250,000
1,475,725
State
of
Washington
,
GO,
2017D,
5%,
2/01/31
............................................
5,480,000
6,869,947
GO,
2017D,
5%,
2/01/32
............................................
10,000,000
12,510,500
GO,
R-2015B,
Refunding,
5%,
7/01/25
..................................
29,370,000
34,661,299
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
57
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Washington
(continued)
Washington
Health
Care
Facilities
Authority
,
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-1,
Refunding,
5%,
8/01/35
$
1,370,000
$
1,693,663
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-2,
Refunding,
5%,
8/01/30
2,800,000
3,556,420
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-2,
Refunding,
5%,
8/01/31
3,700,000
4,671,583
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-2,
Refunding,
5%,
8/01/32
1,500,000
1,880,520
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-2,
Refunding,
5%,
8/01/33
1,395,000
1,739,439
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-2,
Refunding,
5%,
8/01/34
1,225,000
1,520,776
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-2,
Refunding,
5%,
8/01/35
1,250,000
1,545,313
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-2,
Refunding,
5%,
8/01/36
5,125,000
6,309,080
Overlake
Hospital
Medical
Center
Obligated
Group,
Revenue,
B,
Refunding,
5%,
7/01/30
........................................................
1,000,000
1,236,550
Overlake
Hospital
Medical
Center
Obligated
Group,
Revenue,
B,
Refunding,
5%,
7/01/31
........................................................
1,925,000
2,368,251
Seattle
Cancer
Care
Alliance
Obligated
Group,
Revenue,
2020,
Refunding,
5%,
9/01/38
........................................................
1,000,000
1,274,890
Seattle
Cancer
Care
Alliance
Obligated
Group,
Revenue,
2020,
Refunding,
5%,
9/01/39
........................................................
1,000,000
1,271,950
Seattle
Cancer
Care
Alliance
Obligated
Group,
Revenue,
2020,
Refunding,
5%,
9/01/40
........................................................
1,000,000
1,268,230
Virginia
Mason
Medical
Center
Obligated
Group,
Revenue,
2017,
Refunding,
5%,
8/15/31
........................................................
2,250,000
2,558,970
Virginia
Mason
Medical
Center
Obligated
Group,
Revenue,
2017,
Refunding,
5%,
8/15/32
........................................................
1,605,000
1,815,030
Virginia
Mason
Medical
Center
Obligated
Group,
Revenue,
2017,
Refunding,
5%,
8/15/35
........................................................
2,400,000
2,688,864
147,284,299
West
Virginia
0.3%
State
of
West
Virginia
,
GO
,
2019
A
,
5
%
,
12/01/36
...........................
9,700,000
12,616,402
Wisconsin
0.3%
Public
Finance
Authority
,
ACTS
Retirement-Life
Communities,
Inc.
Obligated
Group
,
Revenue
,
2020A
,
4
%
,
11/15/37
.......................................
600,000
668,508
Wisconsin
Department
of
Transportation
,
Revenue
,
2017
2
,
Refunding
,
5
%
,
7/01/31
.
5,000,000
6,350,650
Wisconsin
Health
&
Educational
Facilities
Authority
,
Marshfield
Clinic
Health
System
Obligated
Group,
Revenue,
2020A,
Refunding,
AGMC
Insured,
4%,
2/15/34
........................................
600,000
702,942
Marshfield
Clinic
Health
System
Obligated
Group,
Revenue,
2020A,
Refunding,
AGMC
Insured,
4%,
2/15/35
........................................
1,000,000
1,167,210
Marshfield
Clinic
Health
System
Obligated
Group,
Revenue,
2020A,
Refunding,
AGMC
Insured,
4%,
2/15/36
........................................
600,000
697,098
Marshfield
Clinic
Health
System
Obligated
Group,
Revenue,
2020A,
Refunding,
AGMC
Insured,
4%,
2/15/37
........................................
600,000
694,254
10,280,662
U.S.
Territories
0.8%
District
of
Columbia
0.8%
District
of
Columbia
,
Income
Tax
,
Revenue
,
2019A
,
5
%
,
3/01/33
................
3,000,000
4,006,650
Washington
Metropolitan
Area
Transit
Authority
,
Revenue,
2017B,
5%,
7/01/31
........................................
5,000,000
6,279,050
Revenue,
2017B,
5%,
7/01/32
........................................
5,750,000
7,180,657
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
58
s
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
U.S.
Territories
(continued)
District
of
Columbia
(continued)
Washington
Metropolitan
Area
Transit
Authority,
(continued)
Revenue,
2020A,
5%,
7/15/35
........................................
$
8,675,000
$
11,488,303
28,954,660
Total
U.S.
Territories
....................................................................
28,954,660
Total
Municipal
Bonds
(Cost
$3,359,324,092)
...................................
3,585,746,284
Total
Long
Term
Investments
(Cost
$3,369,265,780)
.............................
3,595,561,134
a
a
a
a
a
Short
Term
Investments
0.7%
Municipal
Bonds
0.7%
Arizona
0.2%
d
Arizona
Industrial
Development
Authority
,
Phoenix
Children's
Hospital
,
Revenue
,
2019
A
,
Refunding
,
LOC
JPMorgan
Chase
Bank
NA
,
Daily
VRDN
and
Put
,
0.02
%
,
2/01/48
7,200,000
7,200,000
Maryland
0.0%
†
d
County
of
Montgomery
,
GO
,
2017
E
,
SPA
US
Bank
NA
,
Daily
VRDN
and
Put
,
0.01
%
,
11/01/37
........................................................
1,600,000
1,600,000
Minnesota
0.1%
d
City
of
Minneapolis/St.
Paul
Housing
&
Redevelopment
Authority
,
Allina
Health
Obligated
Group
,
Revenue
,
2009-B-1
,
LOC
JPMorgan
Chase
Bank
NA
,
Daily
VRDN
and
Put
,
0.02
%
,
11/15/35
............................................
2,000,000
2,000,000
Missouri
0.2%
d
Health
&
Educational
Facilities
Authority
of
the
State
of
Missouri
,
St.
Louis
University,
Revenue,
2002,
SPA
US
Bank
NA,
Daily
VRDN
and
Put,
0.02%,
7/01/32
........................................................
2,380,000
2,380,000
Washington
University
(The),
Revenue,
2000
B,
SPA
JPMorgan
Chase
Bank
NA,
Daily
VRDN
and
Put,
0.02%,
3/01/40
.................................
3,400,000
3,400,000
5,780,000
New
York
0.0%
†
d
Metropolitan
Transportation
Authority
,
Dedicated
Tax
Fund
,
Revenue
,
2008A-1
,
Refunding
,
LOC
TD
Bank
NA
,
Daily
VRDN
and
Put
,
0.02
%
,
11/01/31
...........
900,000
900,000
Ohio
0.0%
†
d
County
of
Allen
,
Bon
Secours
Mercy
Health,
Inc.
,
Revenue
,
2010-C
,
LOC
Bank
of
Montreal
,
Daily
VRDN
and
Put
,
0.05
%
,
6/01/34
...........................
400,000
400,000
Virginia
0.2%
d
Albemarle
County
Economic
Development
Authority
,
Sentara
Healthcare
Obligated
Group
,
Revenue
,
2018
B
,
Refunding
,
SPA
TD
Bank
NA
,
Daily
VRDN
and
Put
,
0.03
%
,
10/01/48
........................................................
6,700,000
6,700,000
Total
Municipal
Bonds
(Cost
$24,580,000)
......................................
24,580,000
Total
Short
Term
Investments
(Cost
$24,580,000
)
................................
24,580,000
a
Total
Investments
(Cost
$3,393,845,780)
99.7%
..................................
$3,620,141,134
Other
Assets,
less
Liabilities
0.3%
.............................................
11,778,843
Net
Assets
100.0%
...........................................................
$3,631,919,977
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
(continued)
franklintempleton.com
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accompanying
notes
are
an
integral
part
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statements.
Semiannual
Report
59
See
Abbreviations
on
page
153
.
†
Rounds
to
less
than
0.1%
of
net
assets.
a
See
Note
3(f)
regarding
investments
in
affiliated
management
investment
companies.
b
Security
purchased
on
a
when-issued
basis.
See
Note
1(b).
c
The
maturity
date
shown
represents
the
mandatory
put
date.
d
Variable
rate
demand
notes
(VRDNs)
are
obligations
which
contain
a
floating
or
variable
interest
rate
adjustment
formula
and
an
unconditional
right
of
demand
to
receive
payment
of
the
principal
balance
plus
accrued
interest
at
specified
dates.
Unless
otherwise
noted,
the
coupon
rate
is
determined
based
on
factors
including
supply
and
demand,
underlying
credit,
tax
treatment,
and
current
short
term
rates.
The
coupon
rate
shown
represents
the
rate
at
period
end.
Franklin
Tax-Free
Trust
Financial
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Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
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The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
60
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
Year
Ended
February
28,
2019
b
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
..........................................
$10.59
$10.35
$10.27
Income
from
investment
operations
c
:
Net
investment
income
d
..................................................
0.06
0.15
0.07
Net
realized
and
unrealized
gains
(losses)
....................................
0.02
0.25
0.08
Total
from
investment
operations
.............................................
0.08
0.40
0.15
Less
distributions
from:
Net
investment
income
...................................................
(0.06)
(0.16)
(0.07)
Net
asset
value,
end
of
period
...............................................
$10.61
$10.59
$10.35
Total
return
e
............................................................
0.77%
3.88%
1.49%
Ratios
to
average
net
assets
f
Expenses
before
waiver
and
payments
by
affiliates
...............................
0.81%
0.81%
0.83%
Expenses
net
of
waiver
and
payments
by
affiliates
g
...............................
0.64%
0.64%
0.65%
Net
investment
income
....................................................
1.13%
1.42%
1.23%
Supplemental
data
Net
assets,
end
of
period
(000’s)
.............................................
$212,321
$158,939
$103,864
Portfolio
turnover
rate
.....................................................
11.07%
10.10%
64.94%
a
For
the
year
ended
February
29.
b
For
the
period
September
10,
2018
(effective
date)
to
February
28,
2019.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
(continued)
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notes
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an
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part
of
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financial
statements.
Semiannual
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a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
2019
2018
2017
2016
a
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$10.60
$10.36
$10.29
$10.37
$10.45
$10.47
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.07
0.16
0.14
0.09
0.09
0.10
Net
realized
and
unrealized
gains
(losses)
0.02
0.25
0.08
(0.09)
(0.09)
(0.03)
Total
from
investment
operations
........
0.09
0.41
0.22
—
—
0.07
Less
distributions
from:
Net
investment
income
..............
(0.07)
(0.17)
(0.15)
(0.08)
(0.08)
(0.09)
Net
asset
value,
end
of
period
..........
$10.62
$10.60
$10.36
$10.29
$10.37
$10.45
Total
return
d
.......................
0.82%
3.99%
2.11%
0.01%
0.04%
0.07%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.71%
0.71%
0.73%
0.71%
0.70%
0.69%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
0.54%
f
0.54%
f
0.55%
f
0.63%
0.63%
0.63%
Net
investment
income
...............
1.25%
1.52%
1.33%
0.84%
0.83%
0.95%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$490,913
$518,898
$582,767
$687,197
$810,811
$886,784
Portfolio
turnover
rate
................
11.07%
10.10%
64.94%
40.13%
18.54%
22.58%
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,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
(continued)
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The
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of
these
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statements.
62
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
Year
Ended
February
28,
2018
b
2020
a
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
..............................
$10.59
$10.35
$10.28
$10.37
Income
from
investment
operations
c
:
Net
investment
income
d
......................................
0.08
0.18
0.16
0.07
Net
realized
and
unrealized
gains
(losses)
........................
0.02
0.25
0.07
(0.10)
Total
from
investment
operations
.................................
0.10
0.43
0.23
(0.03)
Less
distributions
from:
Net
investment
income
.......................................
(0.08)
(0.19)
(0.16)
(0.06)
Net
asset
value,
end
of
period
...................................
$10.61
$10.59
$10.35
$10.28
Total
return
e
................................................
0.91%
4.18%
2.29%
(0.32)%
Ratios
to
average
net
assets
f
Expenses
before
waiver
and
payments
by
affiliates
...................
0.53%
0.54%
0.55%
0.54%
Expenses
net
of
waiver
and
payments
by
affiliates
....................
0.36%
g
0.36%
g
0.36%
g
0.44%
Net
investment
income
........................................
1.42%
1.70%
1.52%
1.03%
Supplemental
data
Net
assets,
end
of
period
(000’s)
.................................
$58,016
$51,952
$47,182
$51,656
Portfolio
turnover
rate
.........................................
11.07%
10.10%
64.94%
40.13%
a
For
the
year
ended
February
29.
b
For
the
period
August
1,
2017
(effective
date)
to
February
28,
2018.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
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part
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statements.
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a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
2019
2018
2017
2016
a
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$10.60
$10.35
$10.29
$10.37
$10.44
$10.46
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.07
0.17
0.15
0.10
0.10
0.11
Net
realized
and
unrealized
gains
(losses)
0.02
0.27
0.07
(0.08)
(0.07)
(0.02)
Total
from
investment
operations
........
0.09
0.44
0.22
0.02
0.03
0.09
Less
distributions
from:
Net
investment
income
..............
(0.07)
(0.19)
(0.16)
(0.10)
(0.10)
(0.11)
Net
asset
value,
end
of
period
..........
$10.62
$10.60
$10.35
$10.29
$10.37
$10.44
Total
return
d
.......................
0.99%
4.14%
2.16%
0.16%
0.28%
0.86%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.56%
0.56%
0.58%
0.56%
0.55%
0.54%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
0.39%
f
0.39%
f
0.40%
f
0.48%
0.48%
0.48%
Net
investment
income
...............
1.36%
1.67%
1.48%
0.99%
0.99%
1.10%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$447,665
$291,452
$274,316
$247,708
$296,298
$239,537
Portfolio
turnover
rate
................
11.07%
10.10%
64.94%
40.13%
18.54%
22.58%
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
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited),
August
31,
2020
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
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statements.
64
a
a
Shares
a
Value
a
Management
Investment
Companies
2.4%
Capital
Markets
2.4%
a
Franklin
Liberty
Municipal
Bond
ETF
.....................................
1,065,000
$
28,637,850
Total
Management
Investment
Companies
(Cost
$27,583,187)
....................
28,637,850
Principal
Amount
a
a
a
a
Municipal
Bonds
79.3%
Alabama
1.4%
b
Black
Belt
Energy
Gas
District
,
Revenue
,
2016
A
,
Mandatory
Put
,
4
%
,
6/01/21
.....
$
5,000,000
5,116,250
b
Industrial
Development
Board
of
the
City
of
Mobile
Alabama
,
Alabama
Power
Co.,
Revenue,
2007
A,
Mandatory
Put,
1%,
6/26/25
...........
4,000,000
4,011,480
Alabama
Power
Co.,
Revenue,
2008,
Mandatory
Put,
2.9%,
12/12/23
...........
7,550,000
8,066,344
17,194,074
Alaska
1.1%
Alaska
Municipal
Bond
Bank
Authority
,
Revenue,
2020,
Refunding,
5%,
12/01/20
................................
300,000
303,375
Revenue,
2020,
Refunding,
5%,
12/01/21
................................
1,000,000
1,056,000
Borough
of
Matanuska-Susitna
,
State
of
Alaska
Department
of
Administration
,
Revenue
,
2015
,
Refunding
,
5.25
%
,
9/01/29
..............................
10,000,000
11,776,300
13,135,675
Arizona
1.6%
Arizona
Industrial
Development
Authority
,
Equitable
School
Revolving
Fund
LLC
Obligated
Group,
Revenue,
2020A,
4%,
11/01/24
.......................................................
1,000,000
1,136,170
Equitable
School
Revolving
Fund
LLC
Obligated
Group,
Revenue,
2020A,
4%,
11/01/25
.......................................................
1,000,000
1,163,490
b
Maricopa
County
Industrial
Development
Authority
,
Scottsdale
Healthcare
Hospitals
Obligated
Group
,
Revenue
,
2019
C
,
Mandatory
Put
,
0.89
%
,
9/01/24
............
17,000,000
16,696,890
18,996,550
Arkansas
0.9%
State
of
Arkansas
,
GO
,
2013
,
3.25
%
,
6/15/22
..............................
11,195,000
11,463,008
California
3.9%
California
County
Tobacco
Securitization
Agency
,
Revenue,
Senior
Lien,
2020
A,
Refunding,
3%,
6/01/21
.....................
400,000
408,144
Revenue,
Senior
Lien,
2020
A,
Refunding,
4%,
6/01/22
.....................
400,000
425,548
Revenue,
Senior
Lien,
2020
A,
Refunding,
4%,
6/01/23
.....................
400,000
439,260
b
California
Health
Facilities
Financing
Authority
,
Providence
St.
Joseph
Health
Obligated
Group,
Revenue,
2013D,
Mandatory
Put,
5%,
10/15/20
...................................................
5,000,000
5,028,650
Providence
St.
Joseph
Health
Obligated
Group,
Revenue,
2016
B-3,
Refunding,
Mandatory
Put,
2%,
10/01/25
.......................................
13,340,000
14,228,978
California
Statewide
Communities
Development
Authority
,
b
Southern
California
Edison
Co.,
Revenue,
D,
Refunding,
Mandatory
Put,
2.625%,
12/01/23
.......................................................
3,000,000
3,157,500
Viamonte
Senior
Living
1,
Inc.,
Revenue,
2018
B-3,
California
Mortgage
Insured,
3%,
7/01/27
........................................................
3,500,000
3,526,320
County
of
Los
Angeles
,
Revenue
,
2020-21
A
,
4
%
,
6/30/21
.....................
5,000,000
5,158,850
Mount
San
Antonio
Community
College
District
,
GO
,
2017
,
ETM,
Zero
Cpn
.,
4/01/22
.
10,000,000
9,951,200
Napa
Valley
Unified
School
District
,
GO
,
2020-21
,
4
%
,
2/26/21
.................
5,000,000
5,091,300
47,415,750
Colorado
0.7%
Denver
City
&
County
School
District
No.
1
,
GO
,
2012B
,
4
%
,
12/01/27
...........
7,480,000
8,031,575
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
65
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Connecticut
0.9%
b
Connecticut
State
Health
&
Educational
Facilities
Authority
,
Yale
University,
Revenue,
2015A,
Refunding,
Mandatory
Put,
2.05%,
7/12/21
.....
$
7,500,000
$
7,620,000
Yale
University,
Revenue,
X-2,
Mandatory
Put,
1.8%,
2/09/21
.................
3,000,000
3,021,030
10,641,030
Florida
1.5%
County
of
Escambia
,
Gulf
Power
Co.
,
Revenue
,
2003
,
Refunding
,
2.6
%
,
6/01/23
....
5,000,000
5,289,500
County
of
Miami-Dade
,
Aviation
,
Revenue
,
2010
A-1
,
Pre-Refunded
,
5.5
%
,
10/01/30
.
4,345,000
4,363,814
Florida
Municipal
Power
Agency
,
Revenue
,
2017
A
,
Refunding
,
5
%
,
10/01/25
......
1,000,000
1,209,580
Orlando-Orange
County
Expressway
Authority
,
Central
Florida
Expressway
Authority
,
Revenue
,
2012
,
Refunding
,
AGMC
Insured
,
5
%
,
7/01/24
....................
4,000,000
4,344,520
State
of
Florida
,
Department
of
Transportation
Turnpike
System
,
Revenue
,
2012
A
,
2.875
%
,
7/01/25
...................................................
3,000,000
3,136,980
18,344,394
Georgia
3.3%
b
Development
Authority
of
Monroe
County
(The)
,
Georgia
Power
Co.
,
Revenue,
First
Series
,
2009
,
Refunding
,
Mandatory
Put
,
2.05
%
,
11/19/21
...................
3,250,000
3,307,297
b
Main
Street
Natural
Gas,
Inc.
,
Revenue
,
2018
A
,
Mandatory
Put
,
4
%
,
9/01/23
......
10,025,000
11,007,049
Metropolitan
Atlanta
Rapid
Transit
Authority
,
Revenue
,
2018A
,
Refunding
,
3
%
,
7/01/23
11,000,000
11,798,160
State
of
Georgia
,
GO
,
2016A
,
5
%
,
2/01/23
................................
12,375,000
13,818,915
39,931,421
Hawaii
0.9%
State
of
Hawaii
,
GO
,
EF
,
Refunding
,
5
%
,
11/01/23
...........................
10,000,000
11,031,900
Illinois
1.3%
b
Illinois
Finance
Authority
,
Field
Museum
of
Natural
History
,
Revenue
,
2019
,
Refunding
,
Mandatory
Put
,
0.606
%
,
9/01/22
......................................
8,610,000
8,510,554
State
of
Illinois
,
GO
,
2018A
,
6
%
,
5/01/25
..................................
6,000,000
6,936,180
15,446,734
Iowa
0.9%
Des
Moines
Independent
Community
School
District
,
Revenue
,
2018
,
AGMC
Insured
,
3
%
,
6/01/29
......................................................
9,300,000
10,277,802
Kansas
0.2%
Reno
County
Unified
School
District
No.
308
Hutchinson
,
GO
,
2019
,
Refunding
,
5
%
,
9/01/27
.........................................................
1,575,000
2,022,914
Kentucky
1.9%
b
Kentucky
Public
Energy
Authority
,
Revenue,
2018A,
Mandatory
Put,
4%,
4/01/24
............................
10,000,000
11,043,000
Revenue,
2020
A,
Mandatory
Put,
4%,
6/01/26
............................
10,000,000
11,618,400
22,661,400
Louisiana
3.0%
Louisiana
Stadium
&
Exposition
District
,
Revenue
,
2020
,
5
%
,
7/03/23
............
1,150,000
1,218,448
b
Parish
of
St.
John
the
Baptist
,
Marathon
Oil
Corp.
,
Revenue
,
2017
B1
,
Refunding
,
Mandatory
Put
,
2.125
%
,
7/01/24
......................................
4,000,000
4,025,680
State
of
Louisiana
,
GO,
2013-A,
4%,
5/15/31
............................................
15,225,000
16,422,142
GO,
2019-A,
5%,
3/01/31
............................................
10,870,000
14,325,573
35,991,843
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Semiannual
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)
Maryland
4.8%
City
of
Baltimore
,
GO
,
2017
B
,
Refunding
,
5
%
,
10/15/25
......................
$
5,000,000
$
6,161,700
b
Maryland
Health
&
Higher
Educational
Facilities
Authority
,
University
of
Maryland
Medical
System
Obligated
Group
,
Revenue
,
2020B-2
,
Refunding
,
Mandatory
Put
,
5
%
,
7/01/27
......................................................
5,110,000
6,359,650
State
of
Maryland
,
GO,
2017
B,
Refunding,
5%,
8/01/26
...................................
12,330,000
15,647,017
GO,
Second
Series,
2013A,
Pre-Refunded,
5%,
8/01/23
.....................
11,355,000
11,855,642
Washington
Suburban
Sanitary
Commission
,
Revenue,
2013,
Pre-Refunded,
4%,
6/01/28
..............................
5,500,000
6,070,680
Revenue,
2013,
Pre-Refunded,
4%,
6/01/30
..............................
5,500,000
6,070,680
Revenue,
2013,
Pre-Refunded,
4%,
6/01/31
..............................
5,500,000
6,070,680
58,236,049
Massachusetts
0.5%
b
Massachusetts
Development
Finance
Agency
,
Partners
Healthcare
System,
Inc.
,
Revenue
,
2017
S-4
,
Refunding
,
Mandatory
Put
,
5
%
,
1/25/24
.................
5,000,000
5,776,000
Michigan
0.3%
City
of
Grand
Rapids
,
Sanitary
Sewer
System
,
Revenue
,
1998
A
,
Refunding
,
BHAC,
AGMC,
FGIC
Insured
,
5.5
%
,
1/01/22
...................................
2,145,000
2,241,611
Michigan
State
Housing
Development
Authority
,
Revenue
,
2019
A-1
,
1.5
%
,
10/01/22
.
1,000,000
1,000,720
3,242,331
Minnesota
2.1%
b
City
of
Brooklyn
Center
,
Brooklyn
Center
AH
I
LLLP
,
Revenue
,
2019
,
Refunding
,
Mandatory
Put
,
1.35
%
,
7/01/22
.......................................
4,000,000
4,012,000
b
City
of
Minneapolis
,
Trinity
LP
,
Revenue
,
2020
,
Mandatory
Put
,
1
%
,
6/01/21
.......
5,000,000
5,007,500
Farmington
Independent
School
District
No.
192
,
GO
,
2015
C
,
Refunding
,
5
%
,
2/01/24
6,065,000
7,046,681
b
Hennepin
County
Housing
&
Redevelopment
Authority
,
Holmes
Housing
Partners
LP
,
Revenue
,
2019
A
,
Mandatory
Put
,
1.35
%
,
12/01/20
........................
1,250,000
1,250,600
Minnesota
Higher
Education
Facilities
Authority
,
University
of
St.
Thomas,
Revenue,
2019,
5%,
10/01/26
.....................
1,000,000
1,213,590
University
of
St.
Thomas,
Revenue,
2019,
5%,
10/01/27
.....................
1,000,000
1,240,360
Northern
Municipal
Power
Agency
,
Revenue
,
2017
,
Refunding
,
5
%
,
1/01/21
.......
5,000,000
5,077,200
24,847,931
Mississippi
0.4%
b,c
Mississippi
Business
Finance
Corp.
,
Waste
Management,
Inc.
,
Revenue
,
2004
,
Mandatory
Put
,
1.35
%
,
3/01/21
.......................................
5,000,000
5,000,000
Montana
0.5%
b
Montana
Facility
Finance
Authority
,
Billings
Clinic
Obligated
Group
,
Revenue
,
2018C
,
Refunding
,
Mandatory
Put
,
0.64
%
,
8/15/23
...............................
6,300,000
6,293,259
Nevada
2.5%
County
of
Clark
Department
of
Aviation
,
Revenue,
Sub.
Lien
,
2018A
,
Refunding
,
5
%
,
7/01/21
.........................................................
17,080,000
17,703,078
Las
Vegas
Valley
Water
District
,
GO,
2020
D,
Refunding,
5%,
6/01/24
...................................
1,745,000
2,053,464
GO,
2020
D,
Refunding,
5%,
6/01/25
...................................
2,750,000
3,352,470
State
of
Nevada
,
Highway
Improvement
,
Revenue
,
2013
,
Refunding
,
5
%
,
12/01/20
..
7,000,000
7,084,210
30,193,222
New
Jersey
6.5%
c
Bergen
County
Improvement
Authority
(The)
,
Revenue
,
2020
A
,
Refunding
,
3
%
,
8/15/22
.........................................................
2,500,000
2,621,475
City
of
Newark
,
GO,
2020
A,
Refunding,
AGMC
Insured,
5%,
10/01/23
......................
1,000,000
1,132,240
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
67
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
New
Jersey
(continued)
City
of
Newark,
(continued)
GO,
2020
A,
Refunding,
AGMC
Insured,
5%,
10/01/24
......................
$
1,000,000
$
1,169,550
County
of
Atlantic
,
GO,
2020,
0.375%,
6/01/21
..........................................
501,000
499,417
GO,
2020,
0.375%,
6/01/23
..........................................
1,730,000
1,697,251
GO,
2020,
0.375%,
6/01/24
..........................................
1,765,000
1,714,539
GO,
2020,
0.375%,
6/01/25
..........................................
1,800,000
1,728,972
County
of
Union
,
GO,
2020,
0.5%,
3/01/23
............................................
5,215,000
5,241,179
GO,
2020,
0.5%,
3/01/24
............................................
5,290,000
5,321,423
Garden
State
Preservation
Trust
,
Revenue
,
2005
A
,
AGMC
Insured
,
5.75
%
,
11/01/28
25,000,000
31,552,750
New
Jersey
Economic
Development
Authority
,
b
New
Jersey-American
Water
Co.,
Inc.,
Revenue,
2019
B,
Refunding,
Mandatory
Put,
2.05%,
12/03/29
.................................................
7,500,000
8,022,600
d
State
of
New
Jersey
Department
of
the
Treasury,
Revenue,
FRN,
2013
I,
Refunding,
1.69%,
(SIFMA
Municipal
Swap
Index
+
1.6%),
3/01/28
....................
5,565,000
5,427,322
New
Jersey
Transportation
Trust
Fund
Authority
,
Revenue
,
2006C
,
BHAC
Insured
,
Zero
Cpn
.,
12/15/27
....................................................
11,110,000
9,728,249
State
of
New
Jersey
,
GO
,
3
%
,
6/01/25
....................................
2,000,000
2,112,400
77,969,367
New
York
5.9%
b
Chautauqua
County
Capital
Resource
Corp.
,
Jamestown
Center
City
Development
Corp.
,
Revenue
,
2013
,
Refunding
,
Mandatory
Put
,
2
%
,
11/01/21
..............
4,750,000
4,796,455
City
of
New
York
,
GO
,
2019A
,
Refunding
,
5
%
,
8/01/22
........................
5,000,000
5,453,150
County
of
Suffolk
,
GO,
2017
D,
Refunding,
4%,
10/15/20
..................................
4,270,000
4,283,664
GO,
2018
B,
AGMC
Insured,
4%,
10/15/28
...............................
4,205,000
4,890,878
Metropolitan
Transportation
Authority
,
Revenue
,
2019B-1
,
5
%
,
5/15/22
...........
8,250,000
8,563,417
New
York
State
Dormitory
Authority
,
Revenue,
2020
B,
5%,
3/31/21
........................................
5,000,000
5,141,050
Cornell
University,
Revenue,
2020A,
Refunding,
5%,
7/01/26
.................
5,000,000
6,323,350
New
York
State
Energy
Research
&
Development
Authority
,
New
York
State
Electric
&
Gas
Corp.,
Revenue,
1994
D,
Refunding,
3.5%,
10/01/29
3,000,000
3,416,130
b
Rochester
Gas
and
Electric
Corp.,
Revenue,
1997
A,
Refunding,
Mandatory
Put,
3%,
7/01/25
........................................................
10,000,000
10,963,800
New
York
State
Housing
Finance
Agency
,
Revenue,
2017K,
GNMA
Insured,
1.5%,
5/01/21
...........................
10,000,000
10,066,800
Revenue,
2020F,
1.1%,
11/01/26
......................................
2,860,000
2,860,229
New
York
State
Urban
Development
Corp.
,
State
of
New
York
Personal
Income
Tax
,
Revenue
,
2020
C
,
Refunding
,
5
%
,
3/15/27
...............................
4,000,000
5,083,040
71,841,963
North
Carolina
1.1%
City
of
Charlotte
,
COP
,
2013B
,
3
%
,
6/01/22
................................
7,500,000
7,515,225
North
Carolina
State
University
at
Raleigh
,
Revenue,
2018,
Refunding,
5%,
10/01/26
................................
3,000,000
3,815,460
Revenue,
2018,
Refunding,
5%,
10/01/27
................................
1,500,000
1,962,945
13,293,630
North
Dakota
0.3%
City
of
West
Fargo
,
GO
,
2018
,
Refunding
,
2.15
%
,
5/01/21
.....................
4,075,000
4,078,464
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Semiannual
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)
Ohio
3.8%
c
County
of
Cuyahoga
,
Revenue
,
2020
D
,
Refunding
,
3
%
,
12/01/21
...............
$
9,090,000
$
9,397,696
County
of
Lucas
,
Promedica
Healthcare
Obligated
Group
,
Revenue
,
2011A
,
Pre-
Refunded
,
6.5
%
,
11/15/37
...........................................
10,000,000
10,747,600
Hillsdale
Local
School
District
,
COP,
2020,
BAM
Insured,
4%,
12/01/20
.................................
1,400,000
1,412,362
COP,
2020,
BAM
Insured,
4%,
12/01/22
.................................
1,200,000
1,291,488
Ohio
Water
Development
Authority
,
Revenue,
2018,
5%,
6/01/28
.........................................
7,000,000
9,231,320
Water
Pollution
Control
Loan
Fund,
Revenue,
2019A,
5%,
6/01/29
.............
8,500,000
11,462,930
Sycamore
Community
City
School
District
,
GO
,
2020
,
4
%
,
12/01/23
.............
2,560,000
2,855,117
46,398,513
Oklahoma
0.6%
Oklahoma
County
Finance
Authority
,
Oklahoma
County
Independent
School
District
No.
52
Midwest
City-Del
City,
Revenue,
2018,
5%,
10/01/20
.......................................
1,350,000
1,355,076
Oklahoma
County
Independent
School
District
No.
52
Midwest
City-Del
City,
Revenue,
2018,
5%,
10/01/22
.......................................
1,000,000
1,095,110
Tulsa
County
Industrial
Authority
,
Tulsa
County
Independent
School
District
No.
11
Owasso,
Revenue,
2018,
5%,
9/01/21
........................................................
2,010,000
2,103,164
Tulsa
County
Independent
School
District
No.
11
Owasso,
Revenue,
2018,
5%,
9/01/22
........................................................
1,500,000
1,633,980
Tulsa
County
Independent
School
District
No.
11
Owasso,
Revenue,
2018,
5%,
9/01/23
........................................................
1,170,000
1,327,786
7,515,116
Oregon
0.9%
Salem-Keizer
School
District
No.
24J
,
GO
,
2018
,
5
%
,
6/15/25
..................
2,000,000
2,442,440
State
of
Oregon
,
GO,
2015B,
Refunding,
5%,
8/01/27
....................................
2,785,000
3,406,779
Department
of
Transportation,
Revenue,
Senior
Lien,
2012
A,
Refunding,
5%,
11/15/22
.......................................................
5,000,000
5,528,550
11,377,769
Pennsylvania
3.7%
b
Delaware
Valley
Regional
Finance
Authority
,
Revenue
,
2018
B
,
Mandatory
Put
,
0.53
%
,
9/01/22
.........................................................
2,500,000
2,484,100
b
Geisinger
Authority
,
Geisinger
Health
System
Obligated
Group
,
Revenue
,
2014B
,
Refunding
,
Mandatory
Put
,
1.174
%
,
6/01/24
..............................
10,000,000
9,967,000
b
Lehigh
County
Industrial
Development
Authority
,
PPL
Electric
Utilities
Corp.
,
Revenue
,
2016
A
,
Refunding
,
Mandatory
Put
,
1.8
%
,
9/01/22
.........................
10,000,000
10,124,800
d
University
of
Pittsburgh-of
the
Commonwealth
System
of
Higher
Education
,
Revenue,
FRN,
2018,
0.33%,
(SIFMA
Municipal
Swap
Index
+
0.24%),
9/15/21
...
5,000,000
4,995,050
Revenue,
FRN,
2019,
0.45%,
(SIFMA
Municipal
Swap
Index
+
0.36%),
2/15/24
...
7,750,000
7,736,205
Westmoreland
County
Municipal
Authority
,
Revenue
,
2013
,
Pre-Refunded
,
5
%
,
8/15/37
7,895,000
8,995,010
44,302,165
Tennessee
2.2%
City
of
Memphis
,
GO,
2018,
5%,
6/01/24
.............................................
6,915,000
8,137,365
GO,
2018,
5%,
6/01/25
.............................................
7,260,000
8,854,369
GO,
2018,
5%,
6/01/26
.............................................
7,625,000
9,580,507
26,572,241
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
69
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Texas
10.9%
Central
Texas
Turnpike
System
,
Revenue,
First
Tier
,
2002-A
,
BHAC,
AMBAC
Insured
,
Zero
Cpn
.,
8/15/27
.................................................
$
3,280,000
$
3,041,806
City
of
Dallas
,
Waterworks
&
Sewer
System
,
Revenue
,
2015A
,
Refunding
,
5
%
,
10/01/26
........................................................
5,000,000
6,129,750
City
of
Houston
,
Combined
Utility
System
,
Revenue,
First
Lien
,
2018
D
,
Refunding
,
5
%
,
11/15/26
........................................................
1,000,000
1,271,530
City
of
Lubbock
,
GO
,
2018
,
Refunding
,
5
%
,
2/15/25
.........................
5,150,000
6,196,841
Clifton
Higher
Education
Finance
Corp.
,
IDEA
Public
Schools,
Revenue,
2017,
Refunding,
PSF
Guaranty,
4%,
8/15/21
....
2,000,000
2,071,520
IDEA
Public
Schools,
Revenue,
2017,
Refunding,
PSF
Guaranty,
4%,
8/15/22
....
3,200,000
3,434,272
Comal
Independent
School
District
,
GO,
2017,
PSF
Guaranty,
5%,
2/01/21
..................................
2,280,000
2,325,646
GO,
2017,
PSF
Guaranty,
5%,
2/01/22
..................................
2,250,000
2,403,067
Cypress-Fairbanks
Independent
School
District
,
GO,
2013,
Refunding,
PSF
Guaranty,
5%,
2/15/22
.........................
7,320,000
7,831,668
b
GO,
2017A-1,
PSF
Guaranty,
Mandatory
Put,
2.125%,
8/16/21
................
5,730,000
5,823,055
Grand
Parkway
Transportation
Corp.
,
Revenue
,
2013
B
,
Pre-Refunded
,
5.25
%
,
10/01/51
........................................................
27,930,000
32,194,073
San
Antonio
Independent
School
District
,
GO
,
2015
,
Refunding
,
PSF
Guaranty
,
5
%
,
2/15/21
.........................................................
14,880,000
15,202,450
State
of
Texas
,
GO,
2018
B-3,
Refunding,
5%,
8/01/24
..................................
4,750,000
5,629,890
GO,
2018
B-3,
Refunding,
5%,
8/01/25
..................................
2,000,000
2,456,380
GO,
2018
B-3,
Refunding,
5%,
8/01/26
..................................
2,000,000
2,531,360
c
Revenue,
2020,
4%,
8/26/21
.........................................
10,000,000
10,374,100
b
Texas
Transportation
Commission
,
State
Highway
Fund
,
Revenue,
First
Tier
,
2016-B
,
Refunding
,
Mandatory
Put
,
4
%
,
10/01/21
................................
3,000,000
3,096,150
Texas
Water
Development
Board
,
State
Revolving
Fund
,
Revenue
,
2018
,
5
%
,
8/01/27
4,200,000
5,445,132
Travis
County
Housing
Finance
Corp.
,
AMTEX
McKinney
Fund
LP
,
Revenue
,
2018
,
2.75
%
,
4/01/21
...................................................
10,000,000
10,012,700
University
of
Texas
System
(The)
,
Revenue
,
2016
J
,
5
%
,
8/15/21
...............
4,000,000
4,185,440
131,656,830
Utah
0.1%
South
Valley
Water
Reclamation
Facility
,
Revenue
,
2018
,
AGMC
Insured
,
5
%
,
2/15/23
1,225,000
1,360,277
Virginia
2.3%
Virginia
College
Building
Authority
,
Revenue,
2012
A,
Pre-Refunded,
4%,
2/01/29
............................
15,375,000
16,204,020
College
of
William
&
Mary
Foundation
(The),
Revenue,
B,
Refunding,
5%,
9/01/20
.
11,760,000
11,760,000
27,964,020
Washington
5.6%
Auburn
School
District
No.
408
of
King
&
Pierce
Counties
,
GO,
2018,
5%,
12/01/27
.............................................
1,700,000
2,221,679
GO,
2018,
5%,
12/01/28
.............................................
3,300,000
4,283,301
Energy
Northwest
,
Bonneville
Power
Administration
,
Revenue
,
2018
A
,
Refunding
,
5
%
,
7/01/23
.........................................................
5,000,000
5,672,700
King
County
School
District
No.
410
Snoqualmie
Valley
,
GO,
2017,
Refunding,
5%,
12/01/20
....................................
4,880,000
4,938,609
GO,
2017,
Refunding,
5%,
12/01/21
....................................
2,455,000
2,603,306
King
County
School
District
No.
414
Lake
Washington
,
GO,
2020,
4%,
12/01/20
.............................................
1,405,000
1,418,404
GO,
2020,
4%,
12/01/21
.............................................
1,415,000
1,482,849
Pierce
County
School
District
No.
320
Sumner
,
GO
,
2017
,
Refunding
,
4
%
,
12/01/20
.
7,250,000
7,318,948
Spokane
County
School
District
No.
354
Mead
,
GO,
2018,
4%,
12/01/32
.............................................
1,150,000
1,361,519
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Semiannual
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)
Washington
(continued)
Spokane
County
School
District
No.
354
Mead,
(continued)
GO,
2018,
5%,
12/01/33
.............................................
$
1,500,000
$
1,895,505
Spokane
County
School
District
No.
356
Central
Valley
,
GO
,
2018
,
4
%
,
12/01/31
....
8,295,000
9,877,603
State
of
Washington
,
GO,
2012D,
Pre-Refunded,
5%,
2/01/34
.................................
6,545,000
6,990,257
GO,
R-2012D,
Refunding,
5%,
7/01/23
..................................
4,085,000
4,443,867
GO,
R-2013B,
Refunding,
5%,
7/01/23
..................................
3,255,000
3,542,221
GO,
R-2015D,
Refunding,
5%,
7/01/28
..................................
3,985,000
4,772,994
b
University
of
Washington
,
Revenue
,
2019A
,
Mandatory
Put
,
5
%
,
5/01/22
..........
5,000,000
5,275,850
68,099,612
Wisconsin
0.8%
City
of
Fond
Du
Lac
,
GO
,
2017
B
,
Refunding
,
2
%
,
4/01/22
.....................
1,000,000
1,027,110
State
of
Wisconsin
,
GO
,
2012B
,
Pre-Refunded
,
3
%
,
5/01/33
...................
9,000,000
9,169,560
10,196,670
Total
Municipal
Bonds
(Cost
$922,800,738)
.....................................
958,801,499
Total
Long
Term
Investments
(Cost
$950,383,925)
...............................
987,439,349
a
a
a
a
a
Short
Term
Investments
18.9%
Municipal
Bonds
18.9%
Colorado
1.8%
e
City
&
County
of
Denver
,
COP,
2008A1,
Refunding,
SPA
JPMorgan
Chase
Bank
NA,
Daily
VRDN
and
Put,
0.02%,
12/01/29
.................................................
2,355,000
2,355,000
COP,
2008A2,
Refunding,
SPA
JPMorgan
Chase
Bank
NA,
Daily
VRDN
and
Put,
0.02%,
12/01/29
.................................................
8,710,000
8,710,000
COP,
2008A3,
Refunding,
SPA
JPMorgan
Chase
Bank
NA,
Daily
VRDN
and
Put,
0.02%,
12/01/31
.................................................
8,900,000
8,900,000
e
Colorado
Educational
&
Cultural
Facilities
Authority
,
Daughters
of
Israel,
Inc.
,
Revenue
,
B-4
,
LOC
TD
Bank
NA
,
Daily
VRDN
and
Put
,
0.02
%
,
12/01/35
................
2,560,000
2,560,000
22,525,000
Florida
0.3%
e
County
of
St.
Lucie
,
Florida
Power
&
Light
Co.
,
Revenue
,
2000
,
Refunding
,
Daily
VRDN
and
Put
,
0.05
%
,
9/01/28
.......................................
3,100,000
3,100,000
Georgia
0.0%
†
e
Athens-Clarke
County
Unified
Government
Development
Authority
,
University
of
Georgia
Athletic
Association,
Inc.
,
Revenue
,
2005
B
,
LOC
Wells
Fargo
Bank
NA
,
Daily
VRDN
and
Put
,
0.03
%
,
7/01/35
...................................
100,000
100,000
Kentucky
0.3%
e
Louisville/Jefferson
County
Metropolitan
Government
,
Norton
Healthcare
Obligated
Group
,
Revenue
,
2011B
,
LOC
PNC
Bank
NA
,
Daily
VRDN
and
Put
,
0.02
%
,
10/01/39
3,600,000
3,600,000
Maryland
0.5%
e
Maryland
Health
&
Higher
Educational
Facilities
Authority
,
University
of
Maryland
Medical
System
Obligated
Group
,
Revenue
,
2008D
,
LOC
TD
Bank
NA
,
Daily
VRDN
and
Put
,
0.02
%
,
7/01/41
.............................................
6,140,000
6,140,000
Minnesota
3.1%
e
City
of
Minneapolis/St.
Paul
Housing
&
Redevelopment
Authority
,
Allina
Health
Obligated
Group,
Revenue,
2009-B-1,
LOC
JPMorgan
Chase
Bank
NA,
Daily
VRDN
and
Put,
0.02%,
11/15/35
.................................
5,725,000
5,725,000
Allina
Health
Obligated
Group,
Revenue,
B-2,
LOC
JPMorgan
Chase
Bank
NA,
Daily
VRDN
and
Put,
0.02%,
11/15/35
.....................................
23,700,000
23,700,000
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
71
Short
Term
Investments
(continued)
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Minnesota
(continued)
e
City
of
Minneapolis/St.
Paul
Housing
&
Redevelopment
Authority,
(continued)
Children's
Health
Care
Obligated
Group,
Revenue,
2007A-2,
AGMC
Insured,
SPA
US
Bank
NA,
Daily
VRDN
and
Put,
0.02%,
8/15/37
..........................
$
6,750,000
$
6,750,000
e
Minnesota
Higher
Education
Facilities
Authority
,
Concordia
University
St.
Paul
,
Revenue
,
6Q
,
LOC
US
Bank
NA
,
Daily
VRDN
and
Put
,
0.04
%
,
4/01/37
.........
1,200,000
1,200,000
37,375,000
Missouri
0.4%
e
Health
&
Educational
Facilities
Authority
of
the
State
of
Missouri
,
Washington
University
(The),
Revenue,
2000
B,
SPA
JPMorgan
Chase
Bank
NA,
Daily
VRDN
and
Put,
0.02%,
3/01/40
.................................
3,200,000
3,200,000
Washington
University
(The),
Revenue,
2003B,
SPA
US
Bank
NA,
Daily
VRDN
and
Put,
0.05%,
2/15/33
..............................................
1,100,000
1,100,000
4,300,000
New
York
6.6%
e
City
of
New
York
,
GO
,
2006
I
,
SPA
State
Street
Bank
&
Trust
Co.
,
Daily
VRDN
and
Put
,
0.03
%
,
4/01/36
...................................................
4,600,000
4,600,000
e
Metropolitan
Transportation
Authority
,
Dedicated
Tax
Fund
,
Revenue
,
2008A-1
,
Refunding
,
LOC
TD
Bank
NA
,
Daily
VRDN
and
Put
,
0.02
%
,
11/01/31
...........
7,155,000
7,155,000
e
Nassau
County
Industrial
Development
Agency
,
Cold
Spring
Harbor
Laboratory
,
Revenue
,
1999
,
Refunding
,
SPA
TD
Bank
NA
,
Daily
VRDN
and
Put
,
0.01
%
,
1/01/34
2,700,000
2,700,000
e
New
York
City
,
Water
&
Sewer
System,
Revenue,
2014
AA-1,
SPA
JPMorgan
Chase
Bank
NA,
Daily
VRDN
and
Put,
0.02%,
6/15/50
......................................
4,200,000
4,200,000
Water
&
Sewer
System,
Revenue,
BB
1B,
SPA
State
Street
Bank
&
Trust
Co.,
Daily
VRDN
and
Put,
0.03%,
6/15/49
......................................
7,200,000
7,200,000
e
New
York
City
Transitional
Finance
Authority
,
Future
Tax
Secured,
Revenue,
2003-A4,
Refunding,
SPA
TD
Bank
NA,
Daily
VRDN
and
Put,
0.02%,
11/01/29
..........................................
19,025,000
19,025,000
Future
Tax
Secured,
Revenue,
2016
E-4,
SPA
JPMorgan
Chase
Bank
NA,
Daily
VRDN
and
Put,
0.02%,
2/01/45
......................................
2,800,000
2,800,000
Future
Tax
Secured,
Revenue,
2019
B-4,
SPA
JPMorgan
Chase
Bank
NA,
Daily
VRDN
and
Put,
0.02%,
8/01/42
......................................
18,800,000
18,800,000
e
Triborough
Bridge
&
Tunnel
Authority
,
Revenue,
2001
C,
Refunding,
LOC
State
Street
Bank
&
Trust
Co.,
Daily
VRDN
and
Put,
0.02%,
1/01/32
..............................................
5,100,000
5,100,000
Revenue,
2005
B-2,
Refunding,
LOC
Citibank
NA,
Daily
VRDN
and
Put,
0.02%,
1/01/32
........................................................
7,145,000
7,145,000
Revenue,
2005B-3,
Refunding,
LOC
State
Street
Bank
&
Trust
Co.,
Daily
VRDN
and
Put,
0.03%,
1/01/32
..............................................
1,300,000
1,300,000
80,025,000
North
Carolina
2.2%
e
Charlotte-Mecklenburg
Hospital
Authority
(The)
,
Atrium
Health
Obligated
Group,
Revenue,
2007C,
Refunding,
SPA
JPMorgan
Chase
Bank
NA,
Daily
VRDN
and
Put,
0.02%,
1/15/37
..........................
15,100,000
15,100,000
Atrium
Health
Obligated
Group,
Revenue,
2018
G,
SPA
JPMorgan
Chase
Bank
NA,
Daily
VRDN
and
Put,
0.02%,
1/15/48
.................................
3,000,000
3,000,000
Atrium
Health
Obligated
Group,
Revenue,
2018
H,
SPA
JPMorgan
Chase
Bank
NA,
Daily
VRDN
and
Put,
0.02%,
1/15/48
.................................
8,335,000
8,335,000
26,435,000
Ohio
0.2%
e
County
of
Allen
,
Bon
Secours
Mercy
Health,
Inc.
,
Revenue
,
2010-C
,
LOC
Bank
of
Montreal
,
Daily
VRDN
and
Put
,
0.05
%
,
6/01/34
...........................
2,700,000
2,700,000
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
72
s
Short
Term
Investments
(continued)
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Oregon
0.8%
e
Oregon
State
Facilities
Authority
,
PeaceHealth
Obligated
Group,
Revenue,
2018
A,
Refunding,
LOC
US
Bank
NA,
Daily
VRDN
and
Put,
0.03%,
8/01/34
.................................
$
7,500,000
$
7,500,000
PeaceHealth
Obligated
Group,
Revenue,
2018
B,
Refunding,
LOC
TD
Bank
NA,
Daily
VRDN
and
Put,
0.02%,
8/01/34
.................................
1,700,000
1,700,000
9,200,000
Tennessee
1.1%
e
Shelby
County
Health
Educational
&
Housing
Facilities
Board
,
Methodist
Le
Bonheur
Healthcare
Obligated
Group
,
Revenue
,
2008A
,
AGMC
Insured
,
SPA
US
Bank
NA
,
Daily
VRDN
and
Put
,
0.03
%
,
6/01/42
...................................
13,530,000
13,530,000
Utah
1.2%
e
County
of
Utah
,
IHC
Health
Services,
Inc.
Obligated
Group
,
Revenue
,
2018C
,
SPA
TD
Bank
NA
,
Daily
VRDN
and
Put
,
0.02
%
,
5/15/58
...........................
1,900,000
1,900,000
e
County
of
Weber
,
IHC
Health
Services,
Inc.
Obligated
Group
,
Revenue
,
2000C
,
SPA
Bank
of
New
York
Mellon
(The)
,
Daily
VRDN
and
Put
,
0.02
%
,
2/15/35
..........
12,200,000
12,200,000
14,100,000
Virginia
0.4%
e
Albemarle
County
Economic
Development
Authority
,
Sentara
Healthcare
Obligated
Group
,
Revenue
,
2018
B
,
Refunding
,
SPA
TD
Bank
NA
,
Daily
VRDN
and
Put
,
0.03
%
,
10/01/48
........................................................
4,875,000
4,875,000
Total
Municipal
Bonds
(Cost
$228,005,000)
.....................................
228,005,000
Total
Short
Term
Investments
(Cost
$228,005,000
)
...............................
228,005,000
a
Total
Investments
(Cost
$1,178,388,925)
100.6%
................................
$1,215,444,349
Other
Assets,
less
Liabilities
(0.6)%
...........................................
(6,530,038)
Net
Assets
100.0%
...........................................................
$1,208,914,311
See
Abbreviations
on
page
153
.
†
Rounds
to
less
than
0.1%
of
net
assets.
a
See
Note
3(f)
regarding
investments
in
affiliated
management
investment
companies.
b
The
maturity
date
shown
represents
the
mandatory
put
date.
c
Security
purchased
on
a
when-issued
basis.
See
Note
1(b).
d
The
coupon
rate
shown
represents
the
rate
at
period
end.
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.
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part
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73
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
Year
Ended
February
28,
2019
b
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
..........................................
$10.46
$9.93
$9.97
Income
from
investment
operations
c
:
Net
investment
income
d
..................................................
0.20
0.39
0.20
Net
realized
and
unrealized
gains
(losses)
....................................
(0.36)
0.56
(0.04)
Total
from
investment
operations
.............................................
(0.16)
0.95
0.16
Less
distributions
from:
Net
investment
income
...................................................
(0.20)
(0.42)
(0.20)
Net
asset
value,
end
of
period
...............................................
$10.10
$10.46
$9.93
Total
return
e
............................................................
(1.51)%
9.73%
1.68%
Ratios
to
average
net
assets
f
Expenses
g
.............................................................
0.80%
0.79%
0.81%
Net
investment
income
....................................................
3.99%
3.82%
4.23%
Supplemental
data
Net
assets,
end
of
period
(000’s)
.............................................
$987,662
$900,342
$343,683
Portfolio
turnover
rate
.....................................................
21.39%
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%.
Franklin
Tax-Free
Trust
Financial
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Yield
Tax-Free
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74
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
2019
2018
2017
2016
a
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$10.45
$9.92
$9.94
$10.25
$10.57
$10.68
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.21
0.40
0.43
0.43
0.46
0.45
Net
realized
and
unrealized
gains
(losses)
(0.37)
0.56
(0.01)
(0.30)
(0.33)
(0.11)
Total
from
investment
operations
........
(0.16)
0.96
0.42
0.01
0.13
0.34
Less
distributions
from:
Net
investment
income
..............
(0.20)
(0.43)
(0.44)
(0.44)
(0.45)
(0.45)
Net
asset
value,
end
of
period
..........
$10.09
$10.45
$9.92
$9.94
$10.25
$10.57
Total
return
d
.......................
(1.44)%
9.90%
4.33%
1.30%
1.21%
3.30%
Ratios
to
average
net
assets
e
Expenses
.........................
0.65%
f
0.64%
f
0.66%
f
0.66%
0.64%
0.67%
Net
investment
income
...............
4.16%
3.97%
4.38%
4.22%
4.36%
4.32%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$3,792,731
$4,196,856
$4,174,968
$4,608,917
$5,030,901
$5,117,876
Portfolio
turnover
rate
................
21.39%
11.98%
6.16%
6.98%
12.26%
11.81%
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,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
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High
Yield
Tax-Free
Income
Fund
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part
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financial
statements.
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a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
2019
2018
2017
2016
a
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$10.66
$10.12
$10.13
$10.44
$10.76
$10.86
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.18
0.36
0.39
0.38
0.41
0.40
Net
realized
and
unrealized
gains
(losses)
(0.37)
0.56
(0.01)
(0.30)
(0.34)
(0.11)
Total
from
investment
operations
........
(0.19)
0.92
0.38
0.08
0.07
0.29
Less
distributions
from:
Net
investment
income
..............
(0.18)
(0.38)
(0.39)
(0.39)
(0.39)
(0.39)
Net
asset
value,
end
of
period
..........
$10.29
$10.66
$10.12
$10.13
$10.44
$10.76
Total
return
d
.......................
(1.77)%
9.27%
3.77%
0.71%
0.62%
2.78%
Ratios
to
average
net
assets
e
Expenses
.........................
1.19%
f
1.19%
f
1.21%
f
1.21%
1.19%
1.22%
Net
investment
income
...............
3.57%
3.42%
3.83%
3.67%
3.81%
3.77%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$390,978
$488,258
$558,728
$870,227
$1,025,186
$1,062,643
Portfolio
turnover
rate
................
21.39%
11.98%
6.16%
6.98%
12.26%
11.81%
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,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
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Trust
Financial
Highlights
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High
Yield
Tax-Free
Income
Fund
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of
these
financial
statements.
76
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
Year
Ended
February
28,
2018
b
2020
a
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
..............................
$10.50
$9.97
$9.98
$10.31
Income
from
investment
operations
c
:
Net
investment
income
d
......................................
0.21
0.42
0.45
0.27
Net
realized
and
unrealized
gains
(losses)
........................
(0.36)
0.56
(0.01)
(0.34)
Total
from
investment
operations
.................................
(0.15)
0.98
0.44
(0.07)
Less
distributions
from:
Net
investment
income
.......................................
(0.21)
(0.45)
(0.45)
(0.26)
Net
asset
value,
end
of
period
...................................
$10.14
$10.50
$9.97
$9.98
Total
return
e
................................................
(1.36)%
10.01%
4.55%
(0.68)%
Ratios
to
average
net
assets
f
Expenses
before
waiver
and
payments
by
affiliates
...................
0.51%
0.51%
0.52%
0.52%
Expenses
net
of
waiver
and
payments
by
affiliates
....................
0.50%
g,h
0.50%
g
0.52%
h
0.51%
Net
investment
income
........................................
4.28%
4.11%
4.52%
4.37%
Supplemental
data
Net
assets,
end
of
period
(000’s)
.................................
$130,340
$127,806
$90,752
$152,255
Portfolio
turnover
rate
.........................................
21.39%
11.98%
6.16%
6.98%
a
For
the
year
ended
February
29.
b
For
the
period
August
1,
2017
(effective
date)
to
February
28,
2018.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
h
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
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Yield
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part
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statements.
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a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
2019
2018
2017
2016
a
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$10.50
$9.97
$9.98
$10.30
$10.61
$10.72
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.21
0.42
0.45
0.44
0.47
0.46
Net
realized
and
unrealized
gains
(losses)
(0.37)
0.55
(0.01)
(0.31)
(0.32)
(0.11)
Total
from
investment
operations
........
(0.16)
0.97
0.44
0.13
0.15
0.35
Less
distributions
from:
Net
investment
income
..............
(0.21)
(0.44)
(0.45)
(0.45)
(0.46)
(0.46)
Net
asset
value,
end
of
period
..........
$10.13
$10.50
$9.97
$9.98
$10.30
$10.61
Total
return
d
.......................
(1.48)%
9.97%
4.52%
1.29%
1.39%
3.39%
Ratios
to
average
net
assets
e
Expenses
.........................
0.55%
f
0.54%
f
0.56%
f
0.56%
0.54%
0.57%
Net
investment
income
...............
4.24%
4.07%
4.48%
4.32%
4.46%
4.32%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$1,091,806
$1,166,057
$994,336
$1,070,254
$1,898,648
$2,167,363
Portfolio
turnover
rate
................
21.39%
11.98%
6.16%
6.98%
12.26%
11.81%
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
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited),
August
31,
2020
Franklin
High
Yield
Tax-Free
Income
Fund
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notes
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integral
part
of
these
financial
statements.
78
a
a
Shares
a
Value
a
Management
Investment
Companies
0.9%
Capital
Markets
0.9%
a
Franklin
Liberty
Intermediate
Municipal
Opportunities
ETF
.....................
550,000
$
14,063,500
iShares
National
Muni
Bond
ETF
........................................
346,295
40,163,294
54,226,794
Total
Management
Investment
Companies
(Cost
$53,215,598)
....................
54,226,794
Principal
Amount
a
a
a
a
U.S.
Government
and
Agency
Securities
0.0%
†
b
Coalview
Centralia
LLC,
15%,
2/28/21
....................................
$
1,900,000
1,896,387
Total
U.S.
Government
and
Agency
Securities
(Cost
$1,900,000)
..................
1,896,387
Municipal
Bonds
97.7%
Alabama
2.7%
County
of
Jefferson
,
Sewer,
Revenue,
Sub.
Lien,
2013-E,
Zero
Cpn.,
10/01/28
....................
7,350,000
5,107,956
Sewer,
Revenue,
Sub.
Lien,
2013-E,
Zero
Cpn.,
10/01/29
....................
13,465,000
8,613,426
Sewer,
Revenue,
Sub.
Lien,
2013-E,
Zero
Cpn.,
10/01/30
....................
19,050,000
11,197,399
Sewer,
Revenue,
Sub.
Lien,
2013-E,
Zero
Cpn.,
10/01/31
....................
24,845,000
13,391,455
Sewer,
Revenue,
Sub.
Lien,
2013-E,
Zero
Cpn.,
10/01/32
....................
30,825,000
15,238,339
Sewer,
Revenue,
Sub.
Lien,
2013-E,
Zero
Cpn.,
10/01/33
....................
35,700,000
16,237,788
Sewer,
Revenue,
Sub.
Lien,
2013-E,
Zero
Cpn.,
10/01/34
....................
28,020,000
11,724,128
Sewer,
Revenue,
Sub.
Lien,
2013-E,
Zero
Cpn.,
10/01/35
....................
15,000,000
5,766,300
Sewer,
Revenue,
Sub.
Lien,
2013-E,
Zero
Cpn.,
10/01/36
....................
12,425,000
4,365,897
Sewer,
Revenue,
Sub.
Lien,
2013-F,
Zero
Cpn.,
10/01/39
....................
75,000,000
73,886,250
Cullman
County
Health
Care
Authority
,
Revenue
,
2009A
,
7
%
,
2/01/36
............
5,000
5,011
Selma
Industrial
Development
Board
,
International
Paper
Co.
,
Revenue
,
2011A
,
5.375
%
,
12/01/35
..................................................
3,250,000
3,405,383
State
of
Alabama
,
Docks
Department
,
Revenue
,
2010
,
Pre-Refunded
,
6
%
,
10/01/40
.
6,000,000
6,028,080
174,967,412
Arizona
1.7%
Arizona
Health
Facilities
Authority
,
CommonSpirit
Health
Obligated
Group
,
Revenue
,
2011B-1
,
5.25
%
,
3/01/39
............................................
10,000,000
10,208,900
Industrial
Development
Authority
of
the
City
of
Phoenix
(The)
,
Downtown
Phoenix
Student
Housing
II
LLC,
Revenue,
2019
A,
5%,
7/01/54
......
1,335,000
1,392,018
Downtown
Phoenix
Student
Housing
LLC,
Revenue,
2018A,
Refunding,
5%,
7/01/42
1,000,000
1,059,680
Industrial
Development
Authority
of
the
County
of
Pima
(The)
,
c
American
Leadership
Academy,
Inc.,
Revenue,
144A,
2017,
5%,
6/15/47
........
5,450,000
5,466,187
c
American
Leadership
Academy,
Inc.,
Revenue,
144A,
2019,
Refunding,
5%,
6/15/49
1,235,000
1,243,262
Tucson
Electric
Power
Co.,
Revenue,
2010
A,
5.25%,
10/01/40
...............
15,405,000
15,445,977
La
Paz
County
Industrial
Development
Authority
,
Harmony
Public
Schools,
Revenue,
2018
A,
5%,
2/15/38
....................
1,000,000
1,121,540
Harmony
Public
Schools,
Revenue,
2018
A,
5%,
2/15/48
....................
1,000,000
1,102,160
c
Maricopa
County
Industrial
Development
Authority
,
Benjamin
Franklin
Charter
School
Obligated
Group,
Revenue,
144A,
2018A,
6%,
7/01/38
........................................................
5,000,000
5,749,650
Benjamin
Franklin
Charter
School
Obligated
Group,
Revenue,
144A,
2018A,
6%,
7/01/52
........................................................
10,000,000
11,282,400
Salt
Verde
Financial
Corp.
,
Revenue,
2007-1,
5.25%,
12/01/25
....................................
6,000,000
7,230,120
Revenue,
2007-1,
5.5%,
12/01/29
.....................................
11,105,000
14,758,212
Tempe
Industrial
Development
Authority
,
c
Mirabella
at
ASU,
Inc.,
Revenue,
144A,
2017A,
6%,
10/01/37
.................
1,200,000
1,249,716
c
Mirabella
at
ASU,
Inc.,
Revenue,
144A,
2017A,
6.125%,
10/01/47
.............
1,400,000
1,443,218
c
Mirabella
at
ASU,
Inc.,
Revenue,
144A,
2017A,
6.125%,
10/01/52
.............
1,400,000
1,439,102
Tempe
Life
Care
Village
Obligated
Group,
Revenue,
2019,
5%,
12/01/50
........
4,300,000
4,233,737
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
79
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Arizona
(continued)
Tempe
Industrial
Development
Authority,
(continued)
Tempe
Life
Care
Village
Obligated
Group,
Revenue,
2019,
5%,
12/01/54
........
$
8,000,000
$
7,819,760
Yuma
County
Industrial
Development
Authority
,
Far
West
Water
&
Sewer,
Inc.
,
Revenue
,
2007A
,
Refunding
,
6.375
%
,
12/01/37
...........................
14,660,000
13,760,902
106,006,541
Arkansas
0.1%
Arkansas
Development
Finance
Authority
,
Baptist
Health
Obligated
Group
,
Revenue
,
2019
,
5
%
,
12/01/47
................................................
3,000,000
3,662,160
California
20.3%
Alvord
Unified
School
District
,
GO
,
2011B
,
AGMC
Insured
,
Zero
Cpn.,
8/01/41
......
30,750,000
16,593,930
c
California
Community
Housing
Agency
,
Revenue
,
144A,
2019
A
,
5
%
,
4/01/49
......
10,800,000
12,127,644
California
County
Tobacco
Securitization
Agency
,
Alameda
County
Tobacco
Asset
Securitization
Corp.
,
Revenue
,
2002
,
5.875
%
,
6/01/35
......................
3,625,000
3,628,516
c
California
Municipal
Finance
Authority
,
California
Baptist
University,
Revenue,
144A,
2015A,
5.5%,
11/01/45
...........
17,400,000
18,364,830
California
Baptist
University,
Revenue,
144A,
2016
A,
5%,
11/01/46
............
6,800,000
7,021,476
c
California
Pollution
Control
Financing
Authority
,
CalPlant
I
LLC,
Revenue,
144A,
2017,
7.5%,
7/01/32
.......................
24,500,000
14,210,000
CalPlant
I
LLC,
Revenue,
144A,
2017,
8%,
7/01/39
........................
10,000,000
5,800,000
Rialto
Bioenergy
Facility
LLC,
Revenue,
144A,
2018,
7.5%,
12/01/40
...........
2,650,000
2,574,502
c
California
Public
Finance
Authority
,
Keck
Graduate
Institute
of
Applied
Life
Sciences
,
Revenue
,
144A,
2017A
,
Refunding
,
5
%
,
7/01/47
..........................
2,900,000
2,436,000
California
State
Public
Works
Board
,
Revenue
,
2012
A
,
5
%
,
4/01/30
.............
17,785,000
19,047,201
California
Statewide
Communities
Development
Authority
,
c
Lancer
Educational
Housing
LLC,
Revenue,
144A,
2016
A,
Refunding,
5%,
6/01/36
7,210,000
7,423,416
Loma
Linda
University
Medical
Center
Obligated
Group,
Revenue,
2014A,
5.25%,
12/01/44
.......................................................
20,555,000
22,108,958
c
Loma
Linda
University
Medical
Center
Obligated
Group,
Revenue,
144A,
2016
A,
5.25%,
12/01/56
.................................................
3,000,000
3,230,490
Centinela
Valley
Union
High
School
District
,
GO
,
2012
B
,
Refunding
,
AGMC
Insured
,
Zero
Cpn.,
8/01/37
.................................................
8,400,000
3,477,432
City
of
San
Buenaventura
,
Community
Memorial
Health
System,
Revenue,
2011,
8%,
12/01/31
............
10,000,000
10,652,900
Community
Memorial
Health
System,
Revenue,
2011,
7.5%,
12/01/41
..........
15,000,000
15,791,850
City
of
San
Jose
,
Hotel
Tax
,
Special
Tax
,
2011
,
6.5
%
,
5/01/42
..................
10,000,000
10,147,800
Compton
Community
College
District
,
GO,
2013D,
Refunding,
BAM
Insured,
Zero
Cpn.,
8/01/30
...................
3,425,000
2,179,636
GO,
2013D,
Refunding,
BAM
Insured,
Zero
Cpn.,
8/01/32
...................
4,000,000
2,213,560
GO,
2013D,
Refunding,
BAM
Insured,
Zero
Cpn.,
8/01/34
...................
4,560,000
2,181,413
GO,
2013D,
Refunding,
BAM
Insured,
Zero
Cpn.,
8/01/36
...................
5,250,000
2,175,967
GO,
2013D,
Refunding,
BAM
Insured,
Zero
Cpn.,
8/01/37
...................
3,065,000
1,182,324
GO,
2013D,
Refunding,
BAM
Insured,
Zero
Cpn.,
8/01/38
...................
6,000,000
2,155,620
Foothill-Eastern
Transportation
Corridor
Agency
,
Revenue,
2013
A,
Refunding,
AGMC
Insured,
Zero
Cpn.,
1/15/30
..............
10,000,000
11,649,000
Revenue,
2013
A,
Refunding,
AGMC
Insured,
Zero
Cpn.,
1/15/31
..............
7,295,000
8,672,077
Revenue,
Junior
Lien,
2013C,
Refunding,
6.5%,
1/15/43
.....................
28,790,000
32,697,091
Revenue,
Junior
Lien,
C,
Refunding,
6.25%,
1/15/33
.......................
17,580,000
19,985,120
Golden
State
Tobacco
Securitization
Corp.
,
Revenue,
2007B,
Zero
Cpn.,
6/01/47
...................................
50,000,000
10,556,500
Revenue,
2018
A2,
Refunding,
5%,
6/01/47
..............................
20,000,000
20,564,400
Los
Angeles
Unified
School
District
,
GO
,
2010
KRY
,
5.25
%
,
7/01/34
.............
36,625,000
36,763,076
M-S-R
Energy
Authority
,
Revenue,
2009B,
6.125%,
11/01/29
....................................
30,275,000
38,594,570
Revenue,
2009B,
7%,
11/01/34
.......................................
20,000,000
31,122,200
Revenue,
2009C,
6.5%,
11/01/39
......................................
20,000,000
31,862,600
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
80
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
Novato
Redevelopment
Agency
Successor
Agency
,
Tax
Allocation
,
2011
,
Pre-
Refunded
,
6.75
%
,
9/01/40
...........................................
$
3,750,000
$
3,993,412
Palmdale
Elementary
School
District
,
Special
Tax,
2012
A,
AGMC
Insured,
Zero
Cpn.,
8/01/28
.....................
1,500,000
1,334,130
Special
Tax,
2012
A,
AGMC
Insured,
Zero
Cpn.,
8/01/30
.....................
1,250,000
1,049,825
Special
Tax,
2012
A,
AGMC
Insured,
Zero
Cpn.,
8/01/31
.....................
1,250,000
1,017,088
Special
Tax,
2012
A,
AGMC
Insured,
Zero
Cpn.,
8/01/34
.....................
2,500,000
2,669,775
Riverside
County
Transportation
Commission
,
Revenue,
Senior
Lien,
2013A,
5.75%,
6/01/44
............................
6,065,000
6,618,249
Revenue,
Senior
Lien,
2013B,
Zero
Cpn.,
6/01/32
.........................
4,000,000
2,943,680
Revenue,
Senior
Lien,
2013B,
Zero
Cpn.,
6/01/33
.........................
5,500,000
3,900,215
Revenue,
Senior
Lien,
2013B,
Zero
Cpn.,
6/01/41
.........................
5,000,000
2,637,950
Revenue,
Senior
Lien,
2013B,
Zero
Cpn.,
6/01/42
.........................
7,000,000
3,554,180
San
Diego
Unified
School
District
,
GO,
2012
E,
Zero
Cpn.,
7/01/42
.......................................
44,565,000
41,713,731
GO,
2012
E,
Zero
Cpn.,
7/01/47
.......................................
33,305,000
31,798,948
GO,
2014
G,
Pre-Refunded,
Zero
Cpn.,
7/01/34
...........................
5,000,000
2,824,450
GO,
2014
G,
Pre-Refunded,
Zero
Cpn.,
7/01/35
...........................
10,000,000
5,319,900
San
Joaquin
Hills
Transportation
Corridor
Agency
,
Revenue,
1997
A,
Refunding,
Zero
Cpn.,
1/15/41
..........................
35,256,000
47,963,320
Revenue,
1997
A,
Refunding,
Zero
Cpn.,
1/15/42
..........................
35,256,000
48,195,305
Revenue,
Junior
Lien,
ETM,
Zero
Cpn.,
1/01/24
...........................
52,700,000
52,176,689
Revenue,
Junior
Lien,
ETM,
Zero
Cpn.,
1/01/25
...........................
45,200,000
44,482,224
Revenue,
Junior
Lien,
ETM,
Zero
Cpn.,
1/01/26
...........................
131,900,000
128,434,987
Revenue,
Junior
Lien,
ETM,
Zero
Cpn.,
1/01/27
...........................
139,100,000
133,586,076
Revenue,
Junior
Lien,
2014B,
Refunding,
5.25%,
1/15/44
....................
20,000,000
22,156,400
Revenue,
Junior
Lien,
2014B,
Refunding,
5.25%,
1/15/49
....................
25,000,000
27,601,500
San
Mateo
Foster
City
School
District
,
GO
,
A
,
Zero
Cpn.,
8/01/42
...............
40,000,000
44,486,000
San
Mateo
Union
High
School
District
,
GO
,
2011A
,
Zero
Cpn.,
9/01/41
...........
20,000,000
22,378,600
San
Ysidro
School
District
,
GO,
2015,
Refunding,
AGMC
Insured,
Zero
Cpn.,
8/01/42
...................
10,000,000
3,729,200
GO,
2015,
Refunding,
AGMC
Insured,
Zero
Cpn.,
8/01/43
...................
12,500,000
4,409,750
Silicon
Valley
Tobacco
Securitization
Authority
,
Revenue,
2007A,
Zero
Cpn.,
6/01/36
...................................
15,000,000
6,264,000
Revenue,
2007C,
Zero
Cpn.,
6/01/56
...................................
60,000,000
6,534,000
Southern
California
Public
Power
Authority
,
Revenue
,
2007A
,
5.25
%
,
11/01/27
.....
9,855,000
12,526,099
State
of
California
,
GO,
5.25%,
3/01/30
................................................
80,000,000
80,316,800
GO,
5%,
10/01/41
.................................................
10,000,000
10,480,800
GO,
2010,
5.25%,
11/01/40
..........................................
47,000,000
47,365,660
Tobacco
Securitization
Authority
of
Southern
California
,
San
Diego
County
Tobacco
Asset
Securitization
Corp.,
Revenue,
2006B,
Zero
Cpn.,
6/01/46
........................................................
50,000,000
10,252,500
San
Diego
County
Tobacco
Asset
Securitization
Corp.,
Revenue,
2019
B-2,
Refunding,
Zero
Cpn.,
6/01/54
......................................
18,000,000
3,072,780
1,296,980,322
Colorado
5.8%
3rd
and
Havana
Metropolitan
District
,
GO
,
2020
A
,
5.25
%
,
12/01/49
.............
3,775,000
3,789,723
9th
Avenue
Metropolitan
District
No.
2
,
GO
,
2018
,
5
%
,
12/01/48
................
7,420,000
7,677,622
Aerotropolis
Regional
Transportation
Authority
,
Revenue
,
2019
,
5
%
,
12/01/51
......
5,500,000
5,599,935
Banning
Lewis
Ranch
Regional
Metropolitan
District
No.
1
,
GO
,
2018
A
,
5.375
%
,
12/01/48
........................................................
2,245,000
2,310,127
c
Bent
Grass
Metropolitan
District
,
GO
,
144A,
2020
,
Refunding
,
5.25
%
,
12/01/49
.....
1,685,000
1,724,682
Bradburn
Metropolitan
District
No.
2
,
GO,
2018A,
Refunding,
5%,
12/01/38
...................................
600,000
645,648
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
81
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Colorado
(continued)
Bradburn
Metropolitan
District
No.
2,
(continued)
GO,
2018A,
Refunding,
5%,
12/01/47
...................................
$
2,400,000
$
2,546,952
Brighton
Crossing
Metropolitan
District
No.
4
,
GO,
2017
A,
5%,
12/01/37
...........................................
525,000
545,312
GO,
2017
A,
5%,
12/01/47
...........................................
2,440,000
2,499,731
City
&
County
of
Denver
,
Airport
System
,
Revenue
,
2018
A
,
Refunding
,
5
%
,
12/01/48
24,120,000
28,795,662
Colorado
Health
Facilities
Authority
,
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-1,
Refunding,
4%,
8/01/44
2,300,000
2,551,229
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-2,
Refunding,
5%,
8/01/44
4,300,000
5,185,456
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-2,
Refunding,
4%,
8/01/49
11,990,000
13,218,256
Evangelical
Lutheran
Good
Samaritan
Obligated
Group,
Revenue,
2015A,
Pre-
Refunded,
5%,
6/01/45
............................................
14,000,000
17,054,800
Frasier
Meadows
Manor,
Inc.
Obligated
Group,
Revenue,
2017
A,
Refunding,
5.25%,
5/15/47
........................................................
6,500,000
7,436,910
Frasier
Meadows
Manor,
Inc.
Obligated
Group,
Revenue,
2017B,
Refunding,
5%,
5/15/48
........................................................
12,255,000
12,892,750
Parkview
Medical
Center,
Inc.
Obligated
Group,
Revenue,
2020A,
4%,
9/01/45
....
1,000,000
1,098,530
Parkview
Medical
Center,
Inc.
Obligated
Group,
Revenue,
2020A,
4%,
9/01/50
....
4,525,000
4,937,770
Constitution
Heights
Metropolitan
District
,
GO
,
2020
,
Refunding
,
5
%
,
12/01/49
.....
1,760,000
1,823,888
Copperleaf
Metropolitan
District
No.
2
,
GO
,
2015
,
Refunding
,
5.75
%
,
12/01/45
.....
2,000,000
2,058,160
Copperleaf
Metropolitan
District
No.
6
,
GO
,
2018
A
,
5.25
%
,
12/01/48
.............
3,850,000
3,942,246
Cornerstar
Metropolitan
District
,
GO,
A,
Refunding,
5.125%,
12/01/37
...................................
2,000,000
2,047,900
GO,
A,
Refunding,
5.25%,
12/01/47
....................................
5,200,000
5,299,528
Cottonwood
Highlands
Metropolitan
District
No.
1
,
GO
,
2019A
,
5
%
,
12/01/49
.......
900,000
913,311
c
Denver
Health
&
Hospital
Authority
,
Revenue,
144A,
2017
A,
Refunding,
4%,
12/01/35
.........................
5,000,000
5,370,100
Revenue,
144A,
2017
A,
Refunding,
4%,
12/01/36
.........................
5,000,000
5,352,000
Denver
International
Business
Center
Metropolitan
District
No.
1
,
GO
,
2019B
,
6
%
,
12/01/48
........................................................
4,290,000
4,444,955
c
DIATC
Metropolitan
District
,
GO
,
144A,
2019
,
Refunding
,
5
%
,
12/01/49
...........
2,000,000
2,042,600
E-470
Public
Highway
Authority
,
Revenue
,
2004
A
,
Refunding
,
NATL
Insured
,
Zero
Cpn.,
9/01/28
.....................................................
15,000,000
13,475,400
First
Creek
Village
Metropolitan
District
,
GO,
2019A,
5%,
12/01/39
...........................................
595,000
637,947
GO,
2019A,
5%,
8/01/49
............................................
540,000
571,326
Hunters
Overlook
Metropolitan
District
No.
5
,
GO,
2019
A,
5%,
12/01/39
...........................................
750,000
774,112
GO,
2019
A,
5%,
12/01/49
...........................................
1,000,000
1,023,700
Jefferson
Center
Metropolitan
District
No.
1
,
Revenue,
2020
A-2,
4.125%,
12/01/40
..................................
575,000
577,645
Revenue,
2020
A-2,
4.375%,
12/01/47
..................................
1,125,000
1,135,890
c
Karl's
Farm
Metropolitan
District
No.
2
,
GO,
144A,
2020
A(3),
5.375%,
12/01/40
.................................
645,000
659,351
GO,
144A,
2020
A(3),
5.625%,
12/01/50
.................................
1,900,000
1,935,777
Leyden
Rock
Metropolitan
District
No.
10
,
GO
,
2016
A
,
Refunding
,
5
%
,
12/01/45
....
3,020,000
3,100,060
Meadowlark
Metropolitan
District
,
Meadowland
Metropolitan
District,
GO,
Senior
Lien,
2020A,
4.875%,
12/01/40
....
520,000
522,049
Meadowland
Metropolitan
District,
GO,
Senior
Lien,
2020A,
5.125%,
12/01/50
....
750,000
752,925
Palisade
Park
West
Metropolitan
District
,
GO
,
2019A
,
5.125
%
,
12/01/49
..........
1,500,000
1,525,965
c
Plaza
Metropolitan
District
No.
1
,
Tax
Allocation
,
144A,
2013
,
Refunding
,
5
%
,
12/01/40
3,000,000
3,057,270
c
Prairie
Center
Metropolitan
District
No.
7
,
GO,
144A,
2020,
4.125%,
12/15/36
....................................
900,000
904,347
GO,
144A,
2020,
4.875%,
12/15/44
....................................
725,000
728,386
Public
Authority
for
Colorado
Energy
,
Revenue,
2008,
6.125%,
11/15/23
.....................................
2,060,000
2,250,715
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Semiannual
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)
Colorado
(continued)
Public
Authority
for
Colorado
Energy,
(continued)
Revenue,
2008,
6.25%,
11/15/28
......................................
$
12,500,000
$
16,080,375
Revenue,
2008,
6.5%,
11/15/38
.......................................
80,100,000
127,713,843
Raindance
Metropolitan
District
No.
1
,
Non-Potable
Water
System,
Revenue,
2020,
5%,
12/01/40
...................
625,000
629,150
Non-Potable
Water
System,
Revenue,
2020,
5.25%,
12/01/50
................
4,250,000
4,277,880
Ritoro
Metropolitan
District
,
GO
,
2019A
,
5
%
,
12/01/49
........................
2,000,000
2,043,480
Severance
Shores
Metropolitan
District
No.
4
,
GO
,
2020
A
,
5
%
,
12/01/49
.........
2,900,000
3,034,589
Sierra
Ridge
Metropolitan
District
No.
2
,
GO,
Senior
Lien
,
2016
A
,
5.5
%
,
12/01/46
...
1,500,000
1,547,040
South
Aurora
Regional
Improvement
Authority
,
Revenue
,
2018
,
6.25
%
,
12/01/57
....
2,815,000
2,884,784
Southglenn
Metropolitan
District
,
GO,
2016,
Refunding,
5%,
12/01/30
....................................
3,470,000
3,585,898
GO,
2016,
Refunding,
5%,
12/01/36
....................................
810,000
826,443
GO,
2016,
Refunding,
5%,
12/01/46
....................................
4,200,000
4,255,776
STC
Metropolitan
District
No.
2
,
GO,
2019A,
Refunding,
5%,
12/01/38
...................................
2,000,000
2,049,880
GO,
2019A,
Refunding,
5%,
12/01/49
...................................
1,000,000
1,012,620
Timberleaf
Metropolitan
District
,
GO
,
2020
A
,
5.75
%
,
12/01/50
..................
1,730,000
1,802,193
Village
at
Dry
Creek
Metropolitan
District
No.
2
(The)
,
GO
,
2019
,
4.375
%
,
12/01/44
..
1,370,000
1,311,624
d
Village
Metropolitan
District
(The)
,
GO,
2020,
Refunding,
5%,
12/01/40
....................................
1,100,000
1,144,308
GO,
2020,
Refunding,
5%,
12/01/49
....................................
1,750,000
1,799,753
Villages
At
Castle
Rock
Metropolitan
District
No.
4
,
1989
,
Zero
Cpn.,
6/01/31
.......
3,000,000
2,700,000
Wild
Plum
Metropolitan
District
,
GO
,
2019
A
,
5
%
,
12/01/49
....................
595,000
629,010
Willow
Bend
Metropolitan
District
,
GO,
Senior
Lien
,
2019A
,
5
%
,
12/01/49
.........
1,000,000
1,019,500
367,786,794
Connecticut
0.6%
Connecticut
State
Health
&
Educational
Facilities
Authority
,
c
Church
Home
of
Hartford
Obligated
Group,
Revenue,
144A,
2016A,
5%,
9/01/46
..
1,000,000
1,027,610
c
Church
Home
of
Hartford
Obligated
Group,
Revenue,
144A,
A,
5%,
9/01/53
......
7,850,000
8,017,048
Masonicare
Corp.
Obligated
Group,
Revenue,
F,
Refunding,
5%,
7/01/37
........
5,500,000
5,839,020
Masonicare
Corp.
Obligated
Group,
Revenue,
F,
Refunding,
5%,
7/01/43
........
13,000,000
13,641,810
c
McLean
Affiliates
Obligated
Group,
Revenue,
144A,
2020
A,
5%,
1/01/45
........
2,000,000
2,125,880
c
McLean
Affiliates
Obligated
Group,
Revenue,
144A,
2020
A,
5%,
1/01/55
........
2,800,000
2,948,960
State
of
Connecticut
,
GO
,
2020
A
,
3
%
,
1/15/39
.............................
1,700,000
1,774,460
35,374,788
Delaware
0.0%
†
Delaware
State
Health
Facilities
Authority
,
Christiana
Care
Health
System
Obligated
Group
,
Revenue
,
2020
A
,
Refunding
,
4
%
,
10/01/49
........................
1,000,000
1,137,570
Florida
6.3%
Brooks
of
Bonita
Springs
Community
Development
District
,
Special
Assessment
,
6.85
%
,
5/01/31
...................................................
790,000
791,438
c
Cape
Coral
Health
Facilities
Authority
,
Gulf
Care,
Inc.
Obligated
Group
,
Revenue,
Senior
Lien
,
144A,
2015
,
Refunding
,
6
%
,
7/01/45
..........................
5,250,000
5,059,425
Capital
Trust
Agency,
Inc.
,
Liza
Jackson
Preparatory
School,
Inc.,
Revenue,
2020
A,
5%,
8/01/55
..........
800,000
914,216
c
Odyssey
Charter
School,
Inc.,
Revenue,
144A,
2019,
5%,
7/01/49
.............
1,280,000
1,334,669
c
Odyssey
Charter
School,
Inc.,
Revenue,
144A,
2019,
5%,
7/01/54
.............
2,390,000
2,483,210
c
Sarasota-Manatee
Jewish
Housing
Council
Obligated
Group,
Revenue,
144A,
2017,
Refunding,
5%,
7/01/46
............................................
3,250,000
3,153,475
c
University
Bridge
LLC,
Revenue,
144A,
2018A,
5.25%,
12/01/43
..............
31,755,000
30,920,796
c
WFCS
Holdings
LLC,
Revenue,
144A,
2020
A-1,
5%,
1/01/55
.................
3,500,000
3,502,450
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
83
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Florida
(continued)
City
of
Tampa
,
H
Lee
Moffitt
Cancer
Center
&
Research
Institute
Obligated
Group,
Revenue,
2020
B,
5%,
7/01/50
..................................................
$
2,000,000
$
2,451,180
State
of
Florida
Cigarette
Tax,
Revenue,
2020
A,
Zero
Cpn.,
9/01/34
............
650,000
434,830
State
of
Florida
Cigarette
Tax,
Revenue,
2020
A,
Zero
Cpn.,
9/01/40
............
1,000,000
506,490
State
of
Florida
Cigarette
Tax,
Revenue,
2020
A,
Zero
Cpn.,
9/01/41
............
1,000,000
482,770
State
of
Florida
Cigarette
Tax,
Revenue,
2020
A,
Zero
Cpn.,
9/01/42
............
1,000,000
460,340
State
of
Florida
Cigarette
Tax,
Revenue,
2020
A,
Zero
Cpn.,
9/01/45
............
2,000,000
802,340
c
Coco
Palms
Community
Development
District
,
Special
Assessment
,
144A,
2019
,
4.75
%
,
6/15/39
...................................................
500,000
542,015
Collier
County
Educational
Facilities
Authority
,
Ave
Maria
University,
Inc.,
Revenue,
2013A,
Refunding,
6%,
6/01/33
...........
5,500,000
5,747,445
Ave
Maria
University,
Inc.,
Revenue,
2013A,
Refunding,
6%,
6/01/38
...........
12,000,000
12,478,560
Hodges
University,
Inc.,
Revenue,
2013,
6.125%,
11/01/43
...................
10,035,000
10,462,090
Coral
Keys
Homes
Community
Development
District
,
Special
Assessment,
2020,
4%,
5/01/40
.................................
570,000
586,684
Special
Assessment,
2020,
4%,
5/01/50
.................................
750,000
757,567
County
of
Broward
,
Port
Facilities
,
Revenue,
Senior
Lien
,
2019
B
,
4
%
,
9/01/49
.....
5,000,000
5,350,650
County
of
Miami-Dade
,
Aviation
,
Revenue
,
2019A
,
5
%
,
10/01/44
................
8,500,000
10,284,150
c
Currents
Community
Development
District
,
Special
Assessment,
144A,
2020
A,
4%,
5/01/40
..........................
3,100,000
3,121,452
Special
Assessment,
144A,
2020
A,
4%,
5/01/51
..........................
5,815,000
5,774,062
c,d
Cypress
Bluff
Community
Development
District
,
Special
Assessment,
144A,
2020
A,
3.125%,
5/01/30
.......................
250,000
250,417
Special
Assessment,
144A,
2020
A,
3.625%,
5/01/40
.......................
800,000
800,944
Special
Assessment,
144A,
2020
A,
3.8%,
5/01/50
.........................
1,175,000
1,174,953
c
Downtown
Doral
South
Community
Development
District
,
Assessment
Area
2
,
Special
Assessment
,
144A,
2018
,
5
%
,
12/15/48
.................................
5,310,000
5,850,292
c
Epperson
North
Community
Development
District
,
Special
Assessment
,
144A,
2018
A-1
,
5.5
%
,
11/01/39
................................................
1,500,000
1,677,225
Epperson
Ranch
II
Community
Development
District
,
Assessment
Area
2,
Special
Assessment,
2020,
3.25%,
5/01/25
...............
775,000
782,750
Assessment
Area
2,
Special
Assessment,
2020,
3.625%,
5/01/30
..............
1,135,000
1,160,356
Assessment
Area
2,
Special
Assessment,
2020,
4.2%,
5/01/40
................
1,225,000
1,259,998
Assessment
Area
2,
Special
Assessment,
2020,
4.375%,
5/01/51
..............
2,300,000
2,364,055
Escambia
County
Health
Facilities
Authority
,
Baptist
Health
Care
Corp.
Obligated
Group,
Revenue,
2020
A,
Refunding,
4%,
8/15/45
........................................................
9,000,000
9,892,170
Baptist
Health
Care
Corp.
Obligated
Group,
Revenue,
2020
A,
Refunding,
4%,
8/15/50
........................................................
1,500,000
1,644,675
Greater
Orlando
Aviation
Authority
,
Revenue
,
2019
A
,
5
%
,
10/01/44
..............
14,200,000
17,206,424
c
Greeneway
Improvement
District
,
Special
Assessment
,
144A,
2013
,
5.125
%
,
5/01/43
35,910,000
36,796,977
c
Hills
Minneola
Community
Development
District
,
Special
Assessment,
144A,
2020,
3.5%,
5/01/31
..........................
1,000,000
1,020,150
Special
Assessment,
144A,
2020,
4%,
5/01/40
............................
2,625,000
2,683,957
Special
Assessment,
144A,
2020,
4%,
5/01/50
............................
5,505,000
5,583,777
Holly
Hill
Road
East
Community
Development
District
,
Special
Assessment,
2020,
4.5%,
11/01/31
...............................
165,000
172,808
Special
Assessment,
2020,
5%,
11/01/41
................................
350,000
374,339
Special
Assessment,
2020,
5%,
11/01/50
................................
520,000
552,281
Indian
Trace
Development
District
,
Special
Assessment
,
2003
,
5.5
%
,
5/01/33
......
2,000,000
2,005,380
Indigo
Community
Development
District
,
e
Special
Assessment,
1999
A,
7%,
5/01/31
...............................
595,000
595,803
Special
Assessment,
1999C,
7%,
5/01/30
................................
4,123,752
2,886,626
Kindred
Community
Development
District
II
,
Special
Assessment,
2020,
3.5%,
5/01/40
...............................
395,000
391,655
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Semiannual
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)
Florida
(continued)
Kindred
Community
Development
District
II,
(continued)
Special
Assessment,
2020,
3.75%,
5/01/50
..............................
$
570,000
$
569,977
Kingman
Gate
Community
Development
District
,
Special
Assessment,
2020,
3.125%,
6/15/30
.............................
375,000
381,832
Special
Assessment,
2020,
4%,
6/15/40
.................................
775,000
812,084
Special
Assessment,
2020,
4%,
6/15/50
.................................
2,270,000
2,330,972
Lake
Ashton
Community
Development
District
,
Special
Assessment
,
2015A-1
,
Refunding
,
5
%
,
5/01/32
.............................................
2,330,000
2,455,843
Marshall
Creek
Community
Development
District
,
Special
Assessment
,
2015A
,
Refunding
,
5
%
,
5/01/32
.............................................
1,890,000
1,971,459
Martin
County
Health
Facilities
Authority
,
Martin
Memorial
Medical
Center
Obligated
Group
,
Revenue
,
2012
,
Pre-Refunded
,
5.5
%
,
11/15/42
......................
3,800,000
4,040,844
Miami-Dade
County
Educational
Facilities
Authority
,
University
of
Miami
,
Revenue
,
B
,
Refunding
,
AMBAC
Insured
,
5.25
%
,
4/01/27
..............................
10,995,000
13,627,753
Miami-Dade
County
Expressway
Authority
,
Revenue
,
2010
A
,
5
%
,
7/01/40
........
44,360,000
44,485,539
North
Sumter
County
Utility
Dependent
District
,
Revenue,
2010,
6%,
10/01/30
........................................
3,780,000
3,797,691
Revenue,
2010,
6.25%,
10/01/43
......................................
6,865,000
6,898,501
Northern
Palm
Beach
County
,
Improvement
District
Unit
of
Development
No.
2C,
Special
Assessment,
2014,
5%,
8/01/34
........................................................
2,700,000
2,899,611
Improvement
District
Unit
of
Development
No.
2C,
Special
Assessment,
2014,
5.2%,
8/01/46
........................................................
6,000,000
6,398,160
Improvement
District
Unit
of
Development
No.
2C,
Special
Assessment,
2017,
5%,
8/01/37
........................................................
750,000
831,915
Improvement
District
Unit
of
Development
No.
2C,
Special
Assessment,
2017,
5%,
8/01/46
........................................................
3,000,000
3,286,800
Orange
County
Health
Facilities
Authority
,
Presbyterian
Retirement
Communities,
Inc.
Obligated
Group,
Revenue,
2016,
Refunding,
5%,
8/01/41
............................................
3,800,000
4,153,210
Presbyterian
Retirement
Communities,
Inc.
Obligated
Group,
Revenue,
2016,
Refunding,
5%,
8/01/47
............................................
4,285,000
4,666,751
Palm
Beach
County
Health
Facilities
Authority
,
ACTS
Retirement-Life
Communities,
Inc.
Obligated
Group
,
Revenue
,
2016
,
Refunding
,
5
%
,
11/15/32
...............
1,500,000
1,753,605
Pelican
Marsh
Community
Development
District
,
Special
Assessment,
2012,
Refunding,
4.875%,
5/01/22
.....................
330,000
338,359
Special
Assessment,
2012,
Refunding,
5.375%,
5/01/31
.....................
1,260,000
1,306,267
Pinellas
County
Industrial
Development
Authority
,
Drs
Kiran
&
Pallavi
Patel
2017
Foundation
for
Global
Understanding,
Inc.,
Revenue,
2017,
5%,
7/01/39
................................................
2,000,000
2,245,500
Drs
Kiran
&
Pallavi
Patel
2017
Foundation
for
Global
Understanding,
Inc.,
Revenue,
2019,
5%,
7/01/29
................................................
1,000,000
1,108,440
d
River
Hall
Community
Development
District
,
Special
Assessment,
2020
A,
3.25%,
5/01/31
.............................
430,000
431,840
Special
Assessment,
2020
A,
3.625%,
5/01/40
............................
1,030,000
1,023,521
Special
Assessment,
2020
A,
3.875%,
5/01/51
............................
2,690,000
2,695,999
River
Place
on
the
St.
Lucie
Community
Development
District
,
Special
Assessment,
2001
A,
7.625%,
5/01/21
............................
600,000
462,162
Special
Assessment,
2001
A,
7.625%,
5/01/30
............................
1,590,000
1,225,954
Rivington
Community
Development
District
,
Special
Assessment
,
2020
,
3.75
%
,
5/01/40
1,910,000
1,919,646
c,d
Sandmine
Road
Community
Development
District
,
Assessment
Area
One,
Special
Assessment,
144A,
2020,
3.125%,
5/01/30
.......
300,000
300,810
Assessment
Area
One,
Special
Assessment,
144A,
2020,
3.625%,
5/01/40
.......
1,040,000
1,043,619
Assessment
Area
One,
Special
Assessment,
144A,
2020,
3.75%,
5/01/50
.......
2,020,000
2,016,324
School
Board
of
Miami-Dade
County
(The)
,
COP
,
2013A
,
5
%
,
5/01/31
............
7,985,000
8,911,340
Six
Mile
Creek
Community
Development
District
,
Assessment
Area
2,
Special
Assessment,
2020,
Refunding,
3.125%,
11/01/25
....
350,000
354,081
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
85
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Florida
(continued)
Six
Mile
Creek
Community
Development
District,
(continued)
Assessment
Area
2,
Special
Assessment,
2020,
Refunding,
3.625%,
11/01/31
....
$
505,000
$
516,999
Assessment
Area
2,
Special
Assessment,
2020,
Refunding,
4.125%,
11/01/40
....
1,375,000
1,417,006
Assessment
Area
2,
Special
Assessment,
2020,
Refunding,
4.25%,
11/01/50
.....
2,305,000
2,362,325
Somerset
Community
Development
District
,
Special
Assessment
,
2005
,
5.3
%
,
5/01/37
5,900,000
5,902,950
State
of
Florida
,
GO
,
1999
D
,
Refunding
,
6
%
,
6/01/23
........................
5,000,000
5,797,700
d
Timber
Creek
Southwest
Community
Development
District
,
Special
Assessment,
2020,
4%,
6/15/40
.................................
1,000,000
1,035,880
Special
Assessment,
2020,
4%,
6/15/50
.................................
1,000,000
1,019,360
c
V-Dana
Community
Development
District
,
Assessment
Area
One,
Special
Assessment,
144A,
2020,
3.5%,
5/01/31
........
375,000
379,560
Assessment
Area
One,
Special
Assessment,
144A,
2020,
4%,
5/01/40
..........
1,775,000
1,801,146
Assessment
Area
One,
Special
Assessment,
144A,
2020,
4%,
5/01/51
..........
3,500,000
3,515,855
Village
Community
Development
District
No.
10
,
Special
Assessment,
2012,
5%,
5/01/32
.................................
5,085,000
5,336,708
Special
Assessment,
2012,
5.125%,
5/01/43
.............................
8,100,000
8,525,574
Special
Assessment,
2014,
5.75%,
5/01/31
..............................
1,800,000
1,965,870
Special
Assessment,
2014,
6%,
5/01/44
.................................
7,400,000
8,144,366
Village
Community
Development
District
No.
6
,
Special
Assessment
,
2013
,
Refunding
,
4
%
,
5/01/35
......................................................
3,485,000
3,588,156
Village
Community
Development
District
No.
9
,
Special
Assessment,
1,
6.75%,
5/01/31
.................................
6,445,000
6,643,506
Special
Assessment,
1,
7%,
5/01/41
....................................
5,715,000
5,927,541
Special
Assessment,
2012,
Refunding,
5%,
5/01/22
........................
390,000
401,400
Special
Assessment,
2012,
Refunding,
5.25%,
5/01/31
......................
1,810,000
1,882,328
Special
Assessment,
2012,
Refunding,
5.5%,
5/01/42
.......................
1,815,000
1,889,233
404,330,188
Georgia
1.3%
e
Baldwin
County
Hospital
Authority
,
Oconee
Regional
Medical
Center
Obligated
Group,
Revenue,
1998,
5.375%,
12/01/28
.......................................................
1,470,000
15
Oconee
Regional
Medical
Center
Obligated
Group,
Revenue,
2016,
6.5%,
4/30/17
.
480,367
37,228
d
Cobb
County
Kennestone
Hospital
Authority
,
WellStar
Health
System
Obligated
Group,
Revenue,
2020
B,
Refunding,
5%,
4/01/38
625,000
762,900
WellStar
Health
System
Obligated
Group,
Revenue,
2020
B,
Refunding,
5%,
4/01/40
600,000
727,590
WellStar
Health
System
Obligated
Group,
Revenue,
2020B,
Refunding,
4%,
4/01/39
325,000
362,970
c
Development
Authority
of
Cobb
County
(The)
,
Presbyterian
Village
Austell,
Inc.,
Revenue,
144A,
2019
A,
Refunding,
5%,
12/01/39
1,825,000
1,815,930
Presbyterian
Village
Austell,
Inc.,
Revenue,
144A,
2019
A,
Refunding,
5%,
12/01/49
10,760,000
10,235,988
Forsyth
County
Hospital
Authority
,
Georgia
Baptist
Healthcare
System
Obligated
Group
,
Revenue
,
1998
,
ETM,
6.375
%
,
10/01/28
...........................
7,400,000
9,166,972
Gainesville
&
Hall
County
Hospital
Authority
,
Northeast
Georgia
Health
System
Obligated
Group
,
Revenue
,
2020
A
,
Refunding
,
4
%
,
2/15/39
.................
8,300,000
9,563,675
Main
Street
Natural
Gas,
Inc.
,
Revenue,
2007A,
5.5%,
9/15/25
.......................................
5,000,000
6,105,550
Revenue,
2007A,
5.5%,
9/15/27
.......................................
4,000,000
5,093,600
Revenue,
2007A,
5.5%,
9/15/28
.......................................
10,000,000
12,940,200
Revenue,
2019
A,
5%,
5/15/49
........................................
11,500,000
16,615,315
Municipal
Electric
Authority
of
Georgia
,
Revenue,
2019
B,
5%,
1/01/48
........................................
4,595,000
5,536,561
Revenue,
2019A,
5%,
1/01/56
........................................
5,000,000
6,033,700
84,998,194
Idaho
0.2%
Idaho
Housing
&
Finance
Association
,
Revenue
,
2010A
,
7
%
,
2/01/36
............
13,305,000
13,515,485
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Semiannual
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)
Illinois
5.2%
Bureau
County
Township
High
School
District
No.
502
,
GO
,
2013A
,
Pre-Refunded
,
BAM
Insured
,
6.625
%
,
10/01/43
.......................................
$
5,250,000
$
6,312,757
Chicago
O'Hare
International
Airport
,
Passenger
Facility
Charge,
Revenue,
2010
B,
5%,
1/01/35
...................
12,555,000
12,600,952
Passenger
Facility
Charge,
Revenue,
2010
B,
5%,
1/01/40
...................
20,430,000
20,505,795
Chicago
Transit
Authority
,
Revenue,
2011,
5.25%,
12/01/36
......................................
11,000,000
11,472,230
d
Revenue,
Second
Lien,
2020
A,
Refunding,
5%,
12/01/55
....................
3,750,000
4,481,700
County
of
Cook
,
GO
,
2012C
,
Refunding
,
5
%
,
11/15/29
.......................
34,555,000
37,036,049
Illinois
Finance
Authority
,
e
2017
IAVF
Windy
City
Obligated
Group,
Revenue,
2017
A-1,
4.375%,
12/01/42
...
2,815,000
1,520,100
e
2018
Blue
Island
LLC,
Revenue,
2018A-1,
5%,
12/01/43
....................
3,000,000
1,800,000
e
2018
Blue
Island
LLC,
Revenue,
2018A-1,
5%,
12/01/53
....................
3,075,000
1,845,000
e
BHF
Chicago
Housing
Group
C
LLC,
Revenue,
2018
A-1,
5.1%,
12/01/43
.......
1,600,000
440,000
e
BHF
Chicago
Housing
Group
C
LLC,
Revenue,
2018
A-1,
5.25%,
12/01/53
......
2,600,000
715,000
CHF-Dekalb
II
LLC,
Revenue,
2011,
6.875%,
10/01/43
......................
15,000,000
15,361,200
CHF-Normal
LLC,
Revenue,
2011,
Pre-Refunded,
7%,
4/01/43
................
7,500,000
7,783,575
c,f
Navistar
International
Corp.,
Revenue,
144A,
2020,
Refunding,
Mandatory
Put,
4.75%,
8/01/30
..................................................
26,100,000
26,826,624
Noble
Network
of
Charter
Schools,
Revenue,
2015,
Refunding,
5%,
9/01/25
......
2,750,000
2,997,115
Noble
Network
of
Charter
Schools,
Revenue,
2015,
Refunding,
5%,
9/01/32
......
3,750,000
4,052,325
OSF
Healthcare
System
Obligated
Group,
Revenue,
2015
A,
Refunding,
5%,
11/15/45
.......................................................
15,750,000
17,894,835
Plymouth
Place
Obligated
Group,
Revenue,
2015,
Refunding,
5%,
5/15/37
.......
2,500,000
2,565,075
Plymouth
Place
Obligated
Group,
Revenue,
2015,
Refunding,
5.25%,
5/15/45
....
1,100,000
1,127,984
Plymouth
Place
Obligated
Group,
Revenue,
2015,
Refunding,
5.25%,
5/15/50
....
3,150,000
3,222,104
Rosalind
Franklin
University
of
Medicine
and
Science,
Revenue,
A,
Refunding,
5%,
8/01/47
........................................................
1,525,000
1,640,229
Rosalind
Franklin
University
of
Medicine
and
Science,
Revenue,
C,
5%,
8/01/46
...
1,900,000
2,044,932
Westminster
Village,
Inc.
Obligated
Group,
Revenue,
2018A,
Refunding,
5%,
5/01/48
4,030,000
3,821,689
Westminster
Village,
Inc.
Obligated
Group,
Revenue,
2018A,
Refunding,
5.25%,
5/01/48
........................................................
10,000,000
9,984,800
Westminster
Village,
Inc.
Obligated
Group,
Revenue,
2018A,
Refunding,
5.5%,
5/01/53
........................................................
8,310,000
8,381,632
Metropolitan
Pier
&
Exposition
Authority
,
Revenue,
1996,
ETM,
7%,
7/01/26
.....................................
5,485,000
6,680,565
Revenue,
2002
A,
NATL
Insured,
Zero
Cpn.,
6/15/35
.......................
15,000,000
9,118,500
Revenue,
2002
A,
NATL
Insured,
Zero
Cpn.,
6/15/36
.......................
4,925,000
2,869,207
Revenue,
2002
A,
NATL
Insured,
Zero
Cpn.,
12/15/37
......................
13,650,000
7,480,473
Revenue,
2002
A,
AGMC,
NATL
Insured,
Zero
Cpn.,
12/15/40
................
4,000,000
2,044,560
Revenue,
2010-B-1,
Refunding,
AGMC
Insured,
Zero
Cpn.,
6/15/45
............
18,100,000
7,611,231
Railsplitter
Tobacco
Settlement
Authority
,
Revenue
,
2010
,
Pre-Refunded
,
6
%
,
6/01/28
9,650,000
10,069,871
State
of
Illinois
,
GO,
2016,
Refunding,
5%,
2/01/26
.....................................
4,000,000
4,497,080
GO,
2016,
4%,
6/01/33
.............................................
2,400,000
2,472,432
GO,
2017C,
5%,
11/01/29
...........................................
4,200,000
4,706,100
GO,
2017D,
3.25%,
11/01/26
.........................................
2,500,000
2,529,250
GO,
2017D,
5%,
11/01/26
...........................................
5,200,000
5,821,452
GO,
2017D,
5%,
11/01/28
...........................................
14,465,000
16,247,522
GO,
2019
C,
4%,
11/01/40
...........................................
1,490,000
1,518,548
GO,
2020,
5.5%,
5/01/30
............................................
3,300,000
4,016,331
GO,
2020,
5.5%,
5/01/39
............................................
7,135,000
8,344,097
GO,
2020,
5.75%,
5/01/45
...........................................
750,000
881,160
Upper
Illinois
River
Valley
Development
Authority
,
2018
IAVF
Timber
Oaks
&
Prairie
View
Obligated
Group,
Revenue,
2018A-1,
5%,
12/01/54
.......................................................
11,000,000
9,254,960
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
87
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Illinois
(continued)
Upper
Illinois
River
Valley
Development
Authority,
(continued)
c
2018
IAVF
Timber
Oaks
&
Prairie
View
Obligated
Group,
Revenue,
144A,
2018B,
6%,
12/01/54
...................................................
$
5,475,000
$
4,697,660
Village
of
Bolingbrook
,
GO
,
2013A
,
Pre-Refunded
,
Zero
Cpn.,
1/01/35
............
19,800,000
10,790,802
Village
of
Bourbonnais
,
Olivet
Nazarene
University
,
Revenue
,
2010
,
Pre-Refunded
,
5.5
%
,
11/01/40
....................................................
3,570,000
3,600,845
Village
of
Hillside
,
Mannheim
Redevelopment
Project
Area
,
Tax
Allocation
,
2018
,
Refunding
,
5
%
,
1/01/30
.............................................
2,690,000
2,752,785
334,439,133
Indiana
1.0%
City
of
Anderson
,
Sweet
Galilee
at
the
Wigwam
LLC
,
Revenue
,
2020A
,
5.375
%
,
1/01/40
.........................................................
2,740,000
2,775,565
Indiana
Finance
Authority
,
BHI
Senior
Living
Obligated
Group,
Revenue,
2011,
5.75%,
11/15/41
...........
5,000,000
5,138,250
Greencroft
Goshen
Obligated
Group,
Revenue,
2013A,
7%,
11/15/43
...........
5,000,000
5,362,350
Marian
University,
Inc.,
Revenue,
2011,
Pre-Refunded,
6.375%,
9/15/41
.........
12,500,000
13,286,375
Ohio
Valley
Electric
Corp.,
Revenue,
2012A,
5%,
6/01/32
....................
10,000,000
10,417,900
WVB
East
End
Partners
LLC,
Revenue,
2013A,
5%,
7/01/40
.................
12,500,000
13,413,375
WVB
East
End
Partners
LLC,
Revenue,
2013A,
5.25%,
1/01/51
...............
12,500,000
13,403,625
63,797,440
Iowa
0.7%
Iowa
Finance
Authority
,
Northcrest
Obligated
Group
,
Revenue
,
2018A
,
5
%
,
3/01/48
..
7,500,000
7,786,275
Iowa
Tobacco
Settlement
Authority
,
Revenue
,
2005B
,
5.6
%
,
6/01/34
.............
35,850,000
36,378,429
44,164,704
Kansas
0.1%
City
of
Derby
,
Revenue
,
2020
,
3.9
%
,
3/01/37
...............................
1,625,000
1,609,384
Wyandotte
County-Kansas
City
Unified
Government
,
Revenue
,
2018
,
4.5
%
,
6/01/40
.
1,820,000
1,805,767
3,415,151
Kentucky
0.6%
County
of
Owen
,
American
Water/Kentucky-American
Water
Co.
Obligated
Group
,
Revenue
,
2010A
,
5.375
%
,
6/01/40
.....................................
10,000,000
10,008,600
Kentucky
Economic
Development
Finance
Authority
,
Owensboro
Health,
Inc.
Obligated
Group
,
Revenue
,
2017
A
,
Refunding
,
5.25
%
,
6/01/41
.......................
10,000,000
11,218,000
Kentucky
Public
Transportation
Infrastructure
Authority
,
Revenue,
First
Tier,
2013C,
Zero
Cpn.,
7/01/39
...........................
10,000,000
10,797,400
Revenue,
First
Tier,
2013C,
Zero
Cpn.,
7/01/43
...........................
5,000,000
5,381,250
37,405,250
Louisiana
1.3%
Calcasieu
Parish
Memorial
Hospital
Service
District
,
Southwest
Louisiana
Healthcare
System
Obligated
Group
,
Revenue
,
2019
,
Refunding
,
5
%
,
12/01/39
............
2,055,000
2,208,118
Louisiana
Local
Government
Environmental
Facilities
&
Community
Development
Authority
,
c
GOMESA,
Revenue,
144A,
2018,
5.375%,
11/01/38
........................
2,575,000
2,778,451
c
Parish
of
Jefferson,
Revenue,
144A,
2019,
4%,
11/01/44
....................
2,655,000
2,509,161
c
Parish
of
Lafourche,
Revenue,
144A,
2019,
3.95%,
11/01/43
.................
4,475,000
4,215,137
c
Parish
of
St.
Martin,
Revenue,
144A,
2019,
4.4%,
11/01/44
...................
3,250,000
3,256,467
c
Parish
of
Vermilion,
Revenue,
144A,
2019,
4.625%,
11/01/38
.................
2,080,000
2,137,553
c
Provident
Group
-
ULM
Properties
LLC,
Revenue,
144A,
2019
A,
5%,
7/01/54
....
4,000,000
3,778,920
c
Terrebonne
Parish
Consolidated
Government,
Revenue,
144A,
2018,
5.5%,
11/01/39
1,985,000
2,117,598
Westlake
Chemical
Corp.,
Revenue,
2010A-2,
6.5%,
11/01/35
................
8,000,000
8,055,120
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Semiannual
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)
Louisiana
(continued)
Louisiana
Public
Facilities
Authority
,
Lafayette
General
Health
System,
Inc.
Obligated
Group,
Revenue,
2016A,
Refunding,
5%,
11/01/41
...........................................
$
2,000,000
$
2,178,740
Lafayette
General
Health
System,
Inc.
Obligated
Group,
Revenue,
2016A,
Refunding,
5%,
11/01/45
...........................................
7,405,000
8,026,058
Louisiana
Children's
Medical
Center
Obligated
Group,
Revenue,
2020
A,
AGMC
Insured,
3%,
6/01/50
..............................................
1,000,000
1,025,720
Ochsner
Clinic
Foundation,
Revenue,
2011,
Pre-Refunded,
6.5%,
5/15/37
.......
5,000,000
5,219,650
Ochsner
Clinic
Foundation,
Revenue,
2011,
Pre-Refunded,
6.75%,
5/15/41
......
15,500,000
16,208,040
Ochsner
Clinic
Foundation,
Revenue,
2016,
Pre-Refunded,
5%,
5/15/47
.........
60,000
75,046
Parish
of
Beauregard
,
OfficeMax,
Inc.
,
Revenue
,
2002
,
Refunding
,
6.8
%
,
2/01/27
...
13,990,000
13,990,560
St.
Tammany
Parish
Finance
Authority
,
Christwood
Obligated
Group,
Revenue,
2014,
Refunding,
5.25%,
11/15/29
.......
1,200,000
1,246,128
Christwood
Obligated
Group,
Revenue,
2014,
Refunding,
5.25%,
11/15/37
.......
1,650,000
1,691,712
Tobacco
Settlement
Financing
Corp.
,
Revenue
,
2013A
,
Refunding
,
5.25
%
,
5/15/35
..
1,000,000
1,078,420
81,796,599
Maine
0.4%
Maine
Governmental
Facilities
Authority
,
Revenue
,
2020
A
,
3
%
,
10/01/39
.........
1,800,000
1,954,980
Maine
Health
&
Higher
Educational
Facilities
Authority
,
MaineGeneral
Health
Obligated
Group,
Revenue,
2011,
6.75%,
7/01/36
.........
4,250,000
4,361,690
MaineGeneral
Health
Obligated
Group,
Revenue,
2011,
7%,
7/01/41
...........
10,000,000
10,278,400
MaineHealth
Obligated
Group,
Revenue,
2020A,
4%,
7/01/45
.................
9,600,000
10,986,048
27,581,118
Maryland
0.5%
City
of
Baltimore
,
Harbor
Point
Special
Taxing
District,
Revenue,
2016,
Refunding,
5%,
6/01/36
.....
1,250,000
1,282,525
Harbor
Point
Special
Taxing
District,
Revenue,
2016,
Refunding,
5.125%,
6/01/43
.
2,500,000
2,560,375
County
of
Frederick
,
Oakdale-Lake
Linganore
Development
District,
Special
Tax,
2019,
Refunding,
3.25%,
7/01/29
........................................................
750,000
733,883
Oakdale-Lake
Linganore
Development
District,
Special
Tax,
2019,
Refunding,
3.75%,
7/01/39
........................................................
1,410,000
1,315,727
County
of
Harford
,
Tax
Allocation
,
2011
,
7.5
%
,
7/01/40
.......................
6,745,000
6,641,532
Maryland
Community
Development
Administration
,
Revenue,
2019
B,
Refunding,
3.2%,
9/01/39
.............................
10,000,000
10,838,800
Residential,
Revenue,
2019
C,
3%,
9/01/39
..............................
7,500,000
7,946,475
Maryland
Health
&
Higher
Educational
Facilities
Authority
,
Frederick
Health,
Inc.
Obligated
Group
,
Revenue
,
2020
,
Refunding
,
4
%
,
7/01/50
...................
1,715,000
1,889,398
33,208,715
Massachusetts
1.1%
Commonwealth
of
Massachusetts
,
Revenue
,
2005
,
Refunding
,
NATL
Insured
,
5.5
%
,
1/01/34
.........................................................
35,000,000
48,163,500
Massachusetts
Bay
Transportation
Authority
,
Revenue
,
1991-A
,
7
%
,
3/01/21
.......
260,000
268,835
Massachusetts
Development
Finance
Agency
,
c
Linden
Ponds
Obligated
Group,
Revenue,
144A,
2018,
5%,
11/15/38
...........
3,000,000
3,036,030
c
Linden
Ponds
Obligated
Group,
Revenue,
144A,
2018,
5.125%,
11/15/46
........
5,000,000
5,021,200
c
North
Hill
Communities,
Inc.
Obligated
Group,
Revenue,
144A,
2013A,
Pre-
Refunded,
6.25%,
11/15/28
.........................................
1,868,000
2,136,301
c
North
Hill
Communities,
Inc.
Obligated
Group,
Revenue,
144A,
2013A,
Pre-
Refunded,
6.25%,
11/15/33
.........................................
2,000,000
2,381,840
c
North
Hill
Communities,
Inc.
Obligated
Group,
Revenue,
144A,
2013A,
Pre-
Refunded,
6.5%,
11/15/43
..........................................
4,125,000
4,939,564
Wellforce
Obligated
Group,
Revenue,
2020
C,
Refunding,
AGMC
Insured,
4%,
10/01/45
.......................................................
1,500,000
1,720,965
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
89
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Massachusetts
(continued)
Massachusetts
Educational
Financing
Authority
,
Revenue
,
2013K
,
5.25
%
,
7/01/29
...
$
4,575,000
$
4,829,507
72,497,742
Michigan
3.4%
City
of
Detroit
,
Great
Lakes
Water
Authority
Sewage
Disposal
System,
Revenue,
Second
Lien,
2001B,
NATL
Insured,
5.5%,
7/01/29
..................................
5,000,000
6,357,750
Great
Lakes
Water
Authority
Sewage
Disposal
System,
Revenue,
Second
Lien,
2006B,
NATL
Insured,
5%,
7/01/36
...................................
15,000
15,053
Great
Lakes
Water
Authority
Sewage
Disposal
System,
Revenue,
Senior
Lien,
2012A,
Pre-Refunded,
5.25%,
7/01/39
................................
12,000,000
13,111,320
City
of
Ecorse
,
GO
,
2011
,
6.5
%
,
11/01/35
.................................
3,815,000
4,054,277
Detroit
City
School
District
,
GO
,
2001A
01
,
AGMC
Insured
,
6
%
,
5/01/29
...........
15,900,000
20,314,953
Michigan
Finance
Authority
,
Bronson
Healthcare
Group
Obligated
Group,
Revenue,
2019
A,
Refunding,
5%,
5/15/54
........................................................
25,000,000
28,433,750
Detroit
Public
Lighting
Authority
Utility
Users
Tax,
Revenue,
2014B,
5%,
7/01/39
...
5,600,000
5,951,960
Detroit
Public
Lighting
Authority
Utility
Users
Tax,
Revenue,
2014B,
5%,
7/01/44
...
5,000,000
5,274,650
Great
Lakes
Water
Authority
Sewage
Disposal
System,
Revenue,
Senior
Lien,
2014C-3,
AGMC
Insured,
5%,
7/01/32
.................................
10,000,000
11,463,100
Great
Lakes
Water
Authority
Sewage
Disposal
System,
Revenue,
Senior
Lien,
2014C-3,
AGMC
Insured,
5%,
7/01/33
.................................
3,000,000
3,421,950
Great
Lakes
Water
Authority
Sewage
Disposal
System,
Revenue,
Senior
Lien,
2014C-6,
Refunding,
5%,
7/01/33
....................................
10,000,000
11,386,400
Great
Lakes
Water
Authority
Water
Supply
System,
Revenue,
D-1,
Refunding,
AGMC
Insured,
5%,
7/01/37
..............................................
5,000,000
5,653,100
Great
Lakes
Water
Authority
Water
Supply
System,
Revenue,
D-4,
Refunding,
5%,
7/01/29
........................................................
11,000,000
12,685,640
Great
Lakes
Water
Authority
Water
Supply
System,
Revenue,
D-4,
Refunding,
5%,
7/01/30
........................................................
9,000,000
10,218,780
Great
Lakes
Water
Authority
Water
Supply
System,
Revenue,
D-4,
Refunding,
5%,
7/01/34
........................................................
10,000,000
11,374,300
Henry
Ford
Health
System
Obligated
Group,
Revenue,
2019A,
5%,
11/15/48
.....
10,000,000
12,234,200
c
Thomas
M
Cooley
Law
School,
Revenue,
144A,
2014,
Refunding,
6%,
7/01/24
...
2,500,000
2,582,750
c
Thomas
M
Cooley
Law
School,
Revenue,
144A,
2014,
Refunding,
6.75%,
7/01/44
.
5,505,000
5,643,836
Trinity
Health
Corp.
Obligated
Group,
Revenue,
2011MI,
Pre-Refunded,
5%,
12/01/39
.......................................................
75,000
79,404
Trinity
Health
Corp.
Obligated
Group,
Revenue,
2013MI-4,
Refunding,
5%,
12/01/39
2,000,000
2,520,340
Trinity
Health
Corp.
Obligated
Group,
Revenue,
2013MI-5,
4%,
12/01/40
........
3,000,000
3,475,650
Trinity
Health
Corp.
Obligated
Group,
Revenue,
MI
2019
A,
Refunding,
5%,
12/01/41
7,500,000
9,358,500
Michigan
State
Building
Authority
,
Revenue
,
2011
II-A
,
Refunding
,
5.375
%
,
10/15/41
.
10,000,000
10,575,800
Michigan
State
Hospital
Finance
Authority
,
Trinity
Health
Corp.
Obligated
Group
,
Revenue
,
2008C
,
Pre-Refunded
,
5
%
,
12/01/34
...........................
2,050,000
2,216,645
Michigan
Tobacco
Settlement
Finance
Authority
,
Michigan
Finance
Authority
Tobacco
Settlement,
Revenue,
2007A,
6%,
6/01/34
...
2,500,000
2,507,300
Michigan
Finance
Authority
Tobacco
Settlement,
Revenue,
2007A,
6%,
6/01/48
...
5,000,000
5,024,750
Michigan
Finance
Authority
Tobacco
Settlement,
Revenue,
2007B,
Zero
Cpn.,
6/01/52
........................................................
150,000,000
14,155,500
220,091,658
Minnesota
0.1%
City
of
Minneapolis
,
Ecumen
Mill
City
Quarter
LLC,
Revenue,
2015,
5.25%,
11/01/45
..............
2,800,000
2,805,992
Ecumen
Mill
City
Quarter
LLC,
Revenue,
2015,
5.375%,
11/01/50
..............
1,000,000
1,000,120
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Semiannual
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)
Minnesota
(continued)
Minnesota
Higher
Education
Facilities
Authority
,
College
of
St.
Scholastica,
Inc.
,
Revenue
,
2019
,
Refunding
,
4
%
,
12/01/40
................................
$
1,000,000
$
1,048,520
4,854,632
Mississippi
0.9%
County
of
Lowndes
,
International
Paper
Co.
,
Revenue
,
1992-B
,
Refunding
,
6.7
%
,
4/01/22
.........................................................
18,875,000
20,573,373
c
Mississippi
Development
Bank
,
County
of
Hancock
,
Revenue
,
144A,
2019
,
4.55
%
,
11/01/39
........................................................
2,250,000
2,292,930
Mississippi
Hospital
Equipment
&
Facilities
Authority
,
Baptist
Memorial
Health
Care
Obligated
Group
,
Revenue
,
A
,
5
%
,
9/01/41
...............................
30,000,000
34,248,300
57,114,603
Missouri
0.9%
Cape
Girardeau
County
Industrial
Development
Authority
,
SoutheastHEALTH
Obligated
Group,
Revenue,
2016
A,
Refunding,
6%,
3/01/33
...
4,685,000
5,247,528
SoutheastHEALTH
Obligated
Group,
Revenue,
2017
A,
Refunding,
5%,
3/01/29
...
250,000
278,442
d
City
of
Maryland
Heights
,
Tax
Allocation
,
2020
,
4.125
%
,
11/01/38
...............
2,500,000
2,500,075
Health
&
Educational
Facilities
Authority
of
the
State
of
Missouri
,
Mosaic
Health
System
Obligated
Group
,
Revenue
,
2019A
,
Refunding
,
4
%
,
2/15/49
..................
1,000,000
1,121,770
Kansas
City
Industrial
Development
Authority
,
City
of
Kansas
City
Airport
,
Revenue
,
2019
B
,
5
%
,
3/01/46
...............................................
28,000,000
33,212,480
Kirkwood
Industrial
Development
Authority
,
Ashfield
Active
Living
&
Wellness
Communities,
Inc.
Obligated
Group,
Revenue,
2017
A,
Refunding,
5.25%,
5/15/42
...................................
1,000,000
1,016,290
Ashfield
Active
Living
&
Wellness
Communities,
Inc.
Obligated
Group,
Revenue,
2017
A,
Refunding,
5.25%,
5/15/50
...................................
3,500,000
3,531,185
St.
Louis
County
Industrial
Development
Authority
,
Friendship
Village
of
West
County
,
Revenue
,
2012
,
Pre-Refunded
,
5
%
,
9/01/42
..............................
7,000,000
7,648,760
Stoddard
County
Industrial
Development
Authority
,
SoutheastHEALTH
Obligated
Group
,
Revenue
,
2016B
,
Refunding
,
6
%
,
3/01/37
..........................
4,000,000
4,421,080
58,977,610
Montana
0.1%
Montana
Facility
Finance
Authority
,
Kalispell
Regional
Medical
Center
Obligated
Group
,
Revenue
,
2018
B
,
Refunding
,
5
%
,
7/01/48
...............................
5,765,000
6,560,512
Nevada
0.8%
City
of
Henderson
,
Local
Improvement
District
No.
T-16,
Special
Assessment,
2005,
5.1%,
3/01/22
...
980,000
944,406
Local
Improvement
District
No.
T-16,
Special
Assessment,
2005,
5.125%,
3/01/25
.
1,030,000
927,052
Local
Improvement
District
No.
T-18,
Special
Assessment,
2016,
Refunding,
4%,
9/01/32
........................................................
1,750,000
1,767,955
Local
Improvement
District
No.
T-18,
Special
Assessment,
2016,
Refunding,
4%,
9/01/35
........................................................
2,500,000
2,490,925
City
of
Las
Vegas
,
Special
Improvement
District
No.
610,
Special
Assessment,
2018,
5%,
6/01/48
....
8,185,000
8,580,581
Special
Improvement
District
No.
812,
Special
Assessment,
2015,
5%,
12/01/27
...
1,465,000
1,593,598
Special
Improvement
District
No.
812,
Special
Assessment,
2015,
5%,
12/01/30
...
1,690,000
1,812,373
Special
Improvement
District
No.
812,
Special
Assessment,
2015,
5%,
12/01/35
...
1,070,000
1,129,053
Special
Improvement
District
No.
814,
Special
Assessment,
2019,
4%,
6/01/39
....
450,000
459,382
Special
Improvement
District
No.
814,
Special
Assessment,
2019,
4%,
6/01/44
....
750,000
756,533
Special
Improvement
District
No.
815,
Special
Assessment,
2020,
4.75%,
12/01/40
1,000,000
1,058,170
c
City
of
Reno
,
Sales
Tax
,
Revenue
,
144A,
2018
C
,
Refunding
,
Zero
Cpn.,
7/01/58
....
19,000,000
2,592,740
County
of
Clark
,
Special
Improvement
District
No.
128,
Special
Assessment,
2001-2007,
5%,
2/01/26
1,295,000
1,304,570
Special
Improvement
District
No.
128,
Special
Assessment,
2001-2007,
5.05%,
2/01/31
........................................................
1,010,000
1,016,009
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
91
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Nevada
(continued)
County
of
Clark,
(continued)
Special
Improvement
District
No.
142,
Special
Assessment,
2012,
Refunding,
5%,
8/01/21
........................................................
$
1,010,000
$
1,047,219
Special
Improvement
District
No.
159,
Special
Assessment,
2015,
5%,
8/01/35
....
2,315,000
2,428,991
c
State
of
Nevada
Department
of
Business
&
Industry
,
Fulcrum
Sierra
Biofuels
LLC,
Revenue,
144A,
2017,
5.875%,
12/15/27
..........
11,885,000
11,880,246
Fulcrum
Sierra
Biofuels
LLC,
Revenue,
144A,
2017,
6.25%,
12/15/37
...........
9,000,000
8,730,990
Somerset
Academy
of
Las
Vegas,
Revenue,
144A,
2018A,
5%,
12/15/38
........
1,000,000
1,020,390
Somerset
Academy
of
Las
Vegas,
Revenue,
144A,
2018A,
5%,
12/15/48
........
1,500,000
1,515,150
53,056,333
New
Hampshire
0.0%
†
c,d,f
New
Hampshire
Business
Finance
Authority
,
Covanta
Holding
Corp.
,
Revenue
,
144A,
2020
B
,
Refunding
,
Mandatory
Put
,
3.75
%
,
7/02/40
........................
3,000,000
3,015,720
New
Jersey
4.1%
New
Jersey
Economic
Development
Authority
,
New
Jersey
Transit
Corp.,
Revenue,
2020
A,
5%,
11/01/44
...................
7,800,000
9,140,586
Provident
Group-Kean
Properties
LLC,
Revenue,
2017
A,
5%,
7/01/32
..........
500,000
488,190
Provident
Group-Kean
Properties
LLC,
Revenue,
2017
A,
5%,
7/01/37
..........
900,000
850,563
Provident
Group-Kean
Properties
LLC,
Revenue,
2017
A,
5%,
7/01/47
..........
1,000,000
892,980
State
of
New
Jersey
Department
of
the
Treasury,
Revenue,
2016AAA,
5%,
6/15/41
4,550,000
5,119,296
State
of
New
Jersey
Department
of
the
Treasury,
Revenue,
2018EEE,
5%,
6/15/33
1,365,000
1,609,321
State
of
New
Jersey
Department
of
the
Treasury,
Revenue,
2018EEE,
5%,
6/15/36
2,640,000
3,082,886
State
of
New
Jersey
Department
of
the
Treasury,
Revenue,
2018EEE,
4.625%,
6/15/48
........................................................
1,000,000
1,106,190
State
of
New
Jersey
Department
of
the
Treasury,
Revenue,
2018EEE,
5%,
6/15/48
10,000,000
11,524,800
State
of
New
Jersey
Department
of
the
Treasury,
Revenue,
2019
LLL,
5%,
6/15/39
750,000
884,790
State
of
New
Jersey
Department
of
the
Treasury,
Revenue,
2019
LLL,
4%,
6/15/44
3,300,000
3,513,972
State
of
New
Jersey
Department
of
the
Treasury,
Revenue,
AAA,
5%,
6/15/35
....
3,450,000
3,909,575
State
of
New
Jersey
Division
of
Property
Management
&
Construction,
Revenue,
2018
C,
5%,
6/15/34
..............................................
1,020,000
1,179,069
State
of
New
Jersey
Division
of
Property
Management
&
Construction,
Revenue,
2018
C,
5%,
6/15/35
..............................................
1,100,000
1,267,662
United
Airlines,
Inc.,
Revenue,
1999,
5.125%,
9/15/23
......................
19,800,000
20,305,296
United
Airlines,
Inc.,
Revenue,
1999,
5.25%,
9/15/29
.......................
25,000,000
25,586,500
United
Airlines,
Inc.,
Revenue,
2003,
5.5%,
6/01/33
........................
16,480,000
16,879,310
c
White
Horse
HMT
Urban
Renewal
LLC,
Revenue,
144A,
2020,
5%,
1/01/40
......
3,000,000
2,865,930
New
Jersey
Higher
Education
Student
Assistance
Authority
,
Revenue
,
2019
B
,
Refunding
,
3
%
,
12/01/32
............................................
8,000,000
7,992,240
New
Jersey
Transportation
Trust
Fund
Authority
,
Revenue,
2006C,
NATL
Insured,
Zero
Cpn.,
12/15/30
.......................
500,000
375,680
Revenue,
2006C,
NATL
Insured,
Zero
Cpn.,
12/15/31
.......................
3,675,000
2,657,503
Revenue,
2008
A,
Zero
Cpn.,
12/15/38
..................................
46,750,000
24,654,080
Revenue,
2009A,
Zero
Cpn.,
12/15/39
..................................
425,000
214,889
Revenue,
2010A,
Zero
Cpn.,
12/15/40
..................................
2,750,000
1,329,295
Revenue,
2011B,
5.25%,
6/15/36
......................................
17,500,000
17,900,400
Revenue,
2014
BB-1,
5%,
6/15/34
.....................................
500,000
587,565
Revenue,
2014AA,
5%,
6/15/38
.......................................
5,060,000
5,486,103
Revenue,
2014AA,
5%,
6/15/44
.......................................
9,335,000
10,066,864
Revenue,
2015AA,
5.25%,
6/15/41
.....................................
2,500,000
2,770,850
Revenue,
2018
A,
Refunding,
5%,
12/15/32
..............................
4,100,000
4,848,701
Revenue,
2018
A,
Refunding,
5%,
12/15/35
..............................
1,800,000
2,104,272
Revenue,
2019
A,
Refunding,
4%,
12/15/39
..............................
1,500,000
1,615,965
Revenue,
2019
AA,
5%,
6/15/46
.......................................
2,500,000
2,885,825
Revenue,
2019
BB,
4%,
6/15/44
.......................................
1,000,000
1,058,730
Revenue,
2019
BB,
5%,
6/15/44
.......................................
3,050,000
3,532,235
Revenue,
2019
BB,
5%,
6/15/50
.......................................
670,000
770,493
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Semiannual
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)
New
Jersey
(continued)
Tobacco
Settlement
Financing
Corp.
,
Revenue,
2018
A,
Refunding,
5%,
6/01/46
...............................
$
9,500,000
$
11,090,110
Revenue,
2018
A,
Refunding,
5.25%,
6/01/46
.............................
18,000,000
21,326,760
Revenue,
2018B,
Refunding,
5%,
6/01/46
...............................
25,000,000
28,340,000
261,815,476
New
Mexico
0.1%
Lower
Petroglyphs
Public
Improvement
District
,
Special
Tax,
2018,
Refunding,
5%,
10/01/33
..............................
500,000
529,285
Special
Tax,
2018,
Refunding,
5%,
10/01/38
..............................
450,000
470,925
Special
Tax,
2018,
Refunding,
5%,
10/01/48
..............................
1,205,000
1,253,308
New
Mexico
Hospital
Equipment
Loan
Council
,
Haverland
Carter
Lifestyle
Obligated
Group
,
Revenue
,
2012
,
5
%
,
7/01/42
....................................
5,000,000
5,056,300
New
Mexico
Mortgage
Finance
Authority
,
Revenue
,
2019
D
,
I
,
GNMA
Insured
,
3
%
,
7/01/39
.........................................................
1,980,000
2,112,264
9,422,082
New
York
5.6%
City
of
New
York
,
GO,
1992-F,
7.5%,
2/01/21
...........................................
5,000
5,029
GO,
1992G,
7.5%,
2/01/22
...........................................
5,000
5,029
Metropolitan
Transportation
Authority
,
Revenue,
2011A,
Pre-Refunded,
5%,
11/15/41
............................
5,925,000
6,270,191
Revenue,
2013
D,
5%,
11/15/38
.......................................
14,040,000
14,715,043
Revenue,
2013E,
5%,
11/15/33
.......................................
10,000,000
10,516,600
f
Revenue,
2015
A-2,
Mandatory
Put,
5%,
5/15/30
..........................
1,000,000
1,159,330
Revenue,
2015D-1,
Refunding,
5%,
11/15/32
.............................
1,250,000
1,349,787
Revenue,
2016A-1,
5.25%,
11/15/56
...................................
5,000,000
5,400,050
Revenue,
2017
B,
Refunding,
5%,
11/15/28
..............................
1,000,000
1,128,310
Revenue,
2017C-1,
Refunding,
5%,
11/15/34
.............................
7,500,000
8,333,700
Revenue,
2020
A-1,
5%,
11/15/47
.....................................
24,300,000
26,886,735
Revenue,
2020
A-1,
5%,
11/15/48
.....................................
3,650,000
4,037,667
Revenue,
2020
A-1,
5%,
11/15/49
.....................................
2,500,000
2,763,750
Revenue,
2020
C-1,
4.75%,
11/15/45
...................................
1,600,000
1,742,992
Revenue,
2020
C-1,
5%,
11/15/50
.....................................
38,845,000
42,910,906
Municipal
Assistance
Corp.
for
the
City
of
Troy
,
Revenue,
1996-C,
NATL
Insured,
Zero
Cpn.,
7/15/21
.......................
428,010
426,970
Revenue,
1996-C,
NATL
Insured,
Zero
Cpn.,
1/15/22
.......................
649,658
646,780
New
York
City
,
Water
&
Sewer
System
,
Revenue
,
2020
DD-1
,
4
%
,
6/15/50
........
1,000,000
1,169,350
New
York
City
Housing
Development
Corp.
,
FC
8
Spruce
Street
Residential
LLC
,
Revenue
,
2014F
,
F
,
Refunding
,
4.5
%
,
2/15/48
............................
9,825,000
10,283,041
New
York
City
Transitional
Finance
Authority
,
Future
Tax
Secured
,
Revenue
,
2020
B-1
,
3
%
,
11/01/47
.....................................................
1,700,000
1,778,948
New
York
Liberty
Development
Corp.
,
c
3
World
Trade
Center
LLC,
Revenue,
144A,
2014,
2,
Refunding,
5.375%,
11/15/40
.
15,000,000
15,848,550
Goldman
Sachs
Headquarters
LLC,
Revenue,
2005,
Refunding,
5.25%,
10/01/35
..
65,000,000
90,714,650
New
York
State
Dormitory
Authority
,
Montefiore
Obligated
Group,
Revenue,
2020A,
Refunding,
4%,
9/01/45
.........
500,000
543,650
Montefiore
Obligated
Group,
Revenue,
2020A,
Refunding,
4%,
9/01/50
.........
500,000
540,615
NYU
Langone
Hospitals
Obligated
Group,
Revenue,
2020A,
4%,
7/01/50
........
500,000
565,060
NYU
Langone
Hospitals
Obligated
Group,
Revenue,
2020A,
4%,
7/01/53
........
1,000,000
1,124,550
State
of
New
York
Personal
Income
Tax,
Revenue,
2019
D,
Refunding,
3%,
2/15/49
2,000,000
2,099,260
New
York
State
Thruway
Authority
,
Revenue,
2019
B,
4%,
1/01/45
........................................
10,000,000
11,486,200
Revenue,
2019
B,
4%,
1/01/50
........................................
10,000,000
11,416,400
New
York
Transportation
Development
Corp.
,
American
Airlines,
Inc.,
Revenue,
2020,
Refunding,
5.25%,
8/01/31
............
12,000,000
12,433,440
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
93
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
New
York
(continued)
New
York
Transportation
Development
Corp.,
(continued)
American
Airlines,
Inc.,
Revenue,
2020,
Refunding,
5.375%,
8/01/36
...........
$
5,000,000
$
5,186,800
Laguardia
Gateway
Partners
LLC,
Revenue,
2016
A,
5%,
7/01/46
.............
41,785,000
44,808,563
Port
Authority
of
New
York
&
New
Jersey
,
Revenue,
221,
4%,
7/15/45
..........................................
1,000,000
1,121,400
Revenue,
221,
4%,
7/15/50
..........................................
1,000,000
1,115,710
Revenue,
TWO
HUNDRED
FOURTEEN,
4%,
9/01/43
......................
5,500,000
6,137,450
c
Rockland
Tobacco
Asset
Securitization
Corp.
,
Revenue
,
144A,
2005
A
,
Zero
Cpn.,
8/15/45
.........................................................
61,000,000
14,385,630
361,058,136
North
Carolina
0.3%
North
Carolina
Medical
Care
Commission
,
Galloway
Ridge
Obligated
Group,
Revenue,
2014A,
Refunding,
5.25%,
1/01/41
...
2,720,000
2,787,347
Maryfield,
Inc.
Obligated
Group,
Revenue,
2015,
Refunding,
5%,
10/01/30
.......
2,790,000
2,974,001
Maryfield,
Inc.
Obligated
Group,
Revenue,
2015,
Refunding,
5%,
10/01/35
.......
1,000,000
1,053,830
d
Maryfield,
Inc.
Obligated
Group,
Revenue,
2020
A,
5%,
10/01/45
..............
1,000,000
1,087,300
d
Maryfield,
Inc.
Obligated
Group,
Revenue,
2020
A,
5%,
10/01/50
..............
1,500,000
1,618,020
Rex
Hospital,
Inc.
Obligated
Group,
Revenue,
2020
A,
4%,
7/01/49
............
1,000,000
1,119,050
United
Church
Homes
&
Services
Obligated
Group,
Revenue,
2015A,
Refunding,
5%,
9/01/37
....................................................
2,100,000
2,129,589
United
Church
Homes
&
Services
Obligated
Group,
Revenue,
2017C,
Refunding,
5%,
9/01/41
....................................................
2,120,000
2,145,164
United
Church
Homes
&
Services
Obligated
Group,
Revenue,
2017C,
Refunding,
5%,
9/01/46
....................................................
6,325,000
6,360,800
Raleigh
Durham
Airport
Authority
,
Revenue
,
2020B
,
Refunding
,
5
%
,
5/01/31
.......
250,000
336,557
21,611,658
North
Dakota
0.2%
County
of
Burleigh
,
University
of
Mary,
Revenue,
2016,
5.1%,
4/15/36
.........................
2,800,000
2,793,868
University
of
Mary,
Revenue,
2016,
5.2%,
4/15/46
.........................
5,430,000
5,309,400
North
Dakota
Housing
Finance
Agency
,
Revenue
,
2019
C
,
3.2
%
,
7/01/39
.........
4,000,000
4,330,920
12,434,188
Ohio
3.1%
Buckeye
Tobacco
Settlement
Financing
Authority
,
Revenue,
Senior
Lien,
2020A-2,
1,
Refunding,
3%,
6/01/48
..................
25,130,000
24,895,286
Revenue,
Senior
Lien,
2020A-2,
1,
Refunding,
4%,
6/01/48
..................
1,000,000
1,106,210
Revenue,
Senior
Lien,
2020
B-2,
2,
Refunding,
5%,
6/01/55
..................
17,475,000
19,222,500
City
of
Centerville
,
Graceworks
Lutheran
Services
Obligated
Group
,
Revenue
,
2017
,
Refunding
,
5.25
%
,
11/01/50
..........................................
5,000,000
5,125,550
Cleveland-Cuyahoga
County
Port
Authority
,
Playhouse
Square
Foundation,
Revenue,
2018,
Refunding,
5.25%,
12/01/38
.....
700,000
739,242
Playhouse
Square
Foundation,
Revenue,
2018,
Refunding,
5.5%,
12/01/43
......
700,000
738,843
County
of
Butler
,
Revenue
,
2010
,
Pre-Refunded
,
5.5
%
,
11/01/40
................
3,320,000
3,348,984
County
of
Fairfield
,
Fairfield
Medical
Center
Obligated
Group
,
Revenue
,
2013
,
Refunding
,
5
%
,
6/15/43
.............................................
10,000,000
10,409,600
County
of
Franklin
,
Trinity
Health
Corp.
Obligated
Group
,
Revenue
,
2019
A
,
4
%
,
12/01/44
.....................................................
10,000,000
11,466,700
County
of
Hamilton
,
Life
Enriching
Communities
Obligated
Group
,
Revenue
,
2011A
,
Pre-Refunded
,
6.625
%
,
1/01/46
.......................................
2,500,000
2,553,300
County
of
Lake
,
Lake
Hospital
System,
Inc.
,
Revenue
,
2015
,
Refunding
,
5
%
,
8/15/45
6,000,000
6,754,500
Franklin
County
Convention
Facilities
Authority
,
Revenue
,
2019
,
5
%
,
12/01/51
......
5,000,000
4,806,600
Little
Miami
Local
School
District
,
GO,
2011,
Pre-Refunded,
6.875%,
12/01/34
..............................
5,100,000
5,350,053
GO,
2011,
6.875%,
12/01/34
.........................................
200,000
202,552
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Semiannual
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)
Ohio
(continued)
Ohio
Air
Quality
Development
Authority
,
Buckeye
Power,
Inc.
,
Revenue
,
2010
,
6
%
,
12/01/40
........................................................
$
15,000,000
$
15,207,600
Ohio
Turnpike
&
Infrastructure
Commission
,
Revenue,
Junior
Lien
,
2013
A-4
,
Zero
Cpn.,
2/15/35
.....................................................
35,000,000
42,742,000
Southeastern
Ohio
Port
Authority
,
Marietta
Area
Health
Care,
Inc.
Obligated
Group,
Revenue,
2012,
Refunding,
6%,
12/01/42
.......................................................
14,000,000
14,538,020
Marietta
Area
Health
Care,
Inc.
Obligated
Group,
Revenue,
2015,
Refunding,
5%,
12/01/35
.......................................................
1,000,000
1,026,020
Marietta
Area
Health
Care,
Inc.
Obligated
Group,
Revenue,
2015,
Refunding,
5%,
12/01/43
.......................................................
1,000,000
1,009,530
Marietta
Area
Health
Care,
Inc.
Obligated
Group,
Revenue,
2015,
Refunding,
5.5%,
12/01/43
.......................................................
1,300,000
1,354,353
State
of
Ohio
,
c
Aultman
Health
Foundation
Obligated
Group,
Revenue,
144A,
2018,
Refunding,
5%,
12/01/48
.......................................................
15,195,000
16,060,811
University
Hospitals
Health
System,
Inc.
Obligated
Group,
Revenue,
2016A,
Refunding,
5%,
1/15/46
............................................
6,000,000
6,811,440
195,469,694
Oklahoma
0.1%
Tulsa
County
Industrial
Authority
,
Montereau
Obligated
Group,
Revenue,
2017,
Refunding,
5.25%,
11/15/37
.......
1,000,000
1,068,550
Montereau
Obligated
Group,
Revenue,
2017,
Refunding,
5.25%,
11/15/45
.......
6,500,000
6,841,575
7,910,125
Oregon
0.5%
Clackamas
&
Washington
Counties
School
District
No.
3
,
GO
,
2020
A
,
Refunding
,
Zero
Cpn.,
6/15/49
.....................................................
1,750,000
782,302
Clackamas
County
Hospital
Facility
Authority
,
Rose
Villa,
Inc.
Obligated
Group,
Revenue,
2020A,
Refunding,
5.125%,
11/15/40
..
500,000
531,335
Rose
Villa,
Inc.
Obligated
Group,
Revenue,
2020A,
Refunding,
5.25%,
11/15/50
...
1,250,000
1,325,988
Rose
Villa,
Inc.
Obligated
Group,
Revenue,
2020A,
Refunding,
5.375%,
11/15/55
..
1,500,000
1,597,680
Hospital
Facilities
Authority
of
Multnomah
County
Oregon
,
Mirabella
at
South
Waterfront,
Revenue,
2014A,
Refunding,
5.4%,
10/01/44
......
3,000,000
3,129,030
Mirabella
at
South
Waterfront,
Revenue,
2014A,
Refunding,
5.5%,
10/01/49
......
5,500,000
5,740,240
Medford
Hospital
Facilities
Authority
,
Asante
Health
System
Obligated
Group
,
Revenue
,
2020A
,
Refunding
,
4
%
,
8/15/39
.......................................
1,100,000
1,285,152
Polk
County
Hospital
Facility
Authority
,
Dallas
Mennonite
Retirement
Community
Obligated
Group,
Revenue,
2020
A,
5.125%,
7/01/55
.................................................
3,500,000
3,524,815
Dallas
Mennonite
Retirement
Community
Obligated
Group,
Revenue,
2020
B,
4%,
7/01/24
........................................................
1,500,000
1,504,260
Salem
Hospital
Facility
Authority
,
Capital
Manor,
Inc.
Obligated
Group,
Revenue,
2012,
Refunding,
5%,
5/15/22
....
425,000
438,438
Capital
Manor,
Inc.
Obligated
Group,
Revenue,
2012,
Refunding,
5.75%,
5/15/27
..
1,000,000
1,059,490
Capital
Manor,
Inc.
Obligated
Group,
Revenue,
2012,
Refunding,
5.625%,
5/15/32
.
1,000,000
1,050,020
Capital
Manor,
Inc.
Obligated
Group,
Revenue,
2012,
Refunding,
6%,
5/15/42
....
3,100,000
3,246,258
Capital
Manor,
Inc.
Obligated
Group,
Revenue,
2012,
Refunding,
6%,
5/15/47
....
2,000,000
2,090,960
Yamhill
County
Hospital
Authority
,
Friendsview
Manor
Obligated
Group
,
Revenue
,
2016A
,
Refunding
,
5
%
,
11/15/51
......................................
4,325,000
4,452,415
31,758,383
Pennsylvania
2.5%
Allegheny
County
Higher
Education
Building
Authority
,
Carlow
University,
Revenue,
2011,
Pre-Refunded,
6.75%,
11/01/31
............
1,215,000
1,305,675
Carlow
University,
Revenue,
2011,
Pre-Refunded,
7%,
11/01/40
...............
2,000,000
2,154,340
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
95
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Pennsylvania
(continued)
c
Allentown
Neighborhood
Improvement
Zone
Development
Authority
,
Revenue,
144A,
2017,
Refunding,
5%,
5/01/32
............................
$
11,975,000
$
12,748,106
Revenue,
144A,
2018,
5%,
5/01/42
....................................
3,245,000
3,409,100
Revenue,
144A,
2018,
5.375%,
5/01/42
.................................
5,000,000
5,244,400
Chester
County
Health
and
Education
Facilities
Authority
,
Main
Line
Health
System,
Inc.
Obligated
Group
,
Revenue
,
2020A
,
4
%
,
9/01/50
.......................
1,000,000
1,144,310
Chester
County
Industrial
Development
Authority
,
Renaissance
Academy
Charter
School,
Revenue,
2014,
5%,
10/01/34
..........
1,500,000
1,616,565
Renaissance
Academy
Charter
School,
Revenue,
2014,
5%,
10/01/39
..........
3,325,000
3,556,087
Renaissance
Academy
Charter
School,
Revenue,
2014,
5%,
10/01/44
..........
1,945,000
2,066,251
c
Woodlands
at
Greystone
Neighborhood
Improvement
District,
Special
Assessment,
144A,
2018,
5%,
3/01/38
...........................................
525,000
531,878
c
Woodlands
at
Greystone
Neighborhood
Improvement
District,
Special
Assessment,
144A,
2018,
5.125%,
3/01/48
.......................................
1,000,000
1,006,490
County
of
Lehigh
,
Lehigh
Valley
Health
Network
Obligated
Group
,
Revenue
,
2019
A
,
Refunding
,
4
%
,
7/01/49
.............................................
10,000,000
11,133,600
Dallas
Area
Municipal
Authority
,
Misericordia
University,
Revenue,
2019,
Refunding,
5%,
5/01/39
..............
1,100,000
1,219,746
Misericordia
University,
Revenue,
2019,
Refunding,
5%,
5/01/48
..............
4,000,000
4,364,680
Franklin
County
Industrial
Development
Authority
,
Menno-Haven,
Inc.
Obligated
Group,
Revenue,
2018,
Refunding,
5%,
12/01/38
...
1,000,000
1,026,430
Menno-Haven,
Inc.
Obligated
Group,
Revenue,
2018,
Refunding,
5%,
12/01/43
...
1,200,000
1,216,104
Menno-Haven,
Inc.
Obligated
Group,
Revenue,
2018,
Refunding,
5%,
12/01/48
...
4,600,000
4,636,754
Menno-Haven,
Inc.
Obligated
Group,
Revenue,
2018,
Refunding,
5%,
12/01/53
...
3,050,000
3,064,091
Menno-Haven,
Inc.
Obligated
Group,
Revenue,
2019,
5%,
12/01/54
............
1,000,000
1,003,950
Lancaster
County
Hospital
Authority
,
Brethren
Village
Obligated
Group,
Revenue,
2017,
Refunding,
5.125%,
7/01/37
...
1,000,000
1,043,510
Brethren
Village
Obligated
Group,
Revenue,
2017,
Refunding,
5.25%,
7/01/41
....
2,500,000
2,603,075
Montgomery
County
Industrial
Development
Authority
,
ACTS
Retirement-Life
Communities,
Inc.
Obligated
Group,
Revenue,
2016,
Refunding,
5%,
11/15/36
...........................................
6,710,000
7,768,301
ACTS
Retirement-Life
Communities,
Inc.
Obligated
Group,
Revenue,
2020
C,
5%,
11/15/45
.......................................................
1,000,000
1,184,510
f
Pennsylvania
Economic
Development
Financing
Authority
,
Talen
Energy
Supply
LLC
,
Revenue
,
B
,
Refunding
,
Mandatory
Put
,
5
%
,
9/01/20
.......................
25,000,000
25,000,000
Pennsylvania
Housing
Finance
Agency
,
Revenue
,
2019-129
,
3.15
%
,
10/01/39
......
3,000,000
3,237,570
Pennsylvania
State
University
(The)
,
Revenue
,
2020A
,
4
%
,
9/01/50
.............
1,000,000
1,158,130
Pennsylvania
Turnpike
Commission
,
Revenue,
2009C,
AGMC
Insured,
6.25%,
6/01/33
.........................
5,000,000
6,412,650
Revenue,
B-2,
Zero
Cpn.,
12/01/37
....................................
20,000,000
20,414,200
Revenue,
B-2,
Zero
Cpn.,
12/01/40
....................................
25,075,000
25,346,312
Philadelphia
Authority
for
Industrial
Development
,
Evangelical
Services
for
the
Aging
Obligated
Group
,
Revenue
,
A
,
Refunding
,
5
%
,
7/01/49
......................
3,000,000
2,937,000
159,553,815
Rhode
Island
0.1%
Rhode
Island
Health
and
Educational
Building
Corp.
,
Care
New
England
Health
System
Obligated
Group
,
Revenue
,
2013A
,
Pre-Refunded
,
6
%
,
9/01/33
.........
7,320,000
8,549,614
South
Carolina
1.2%
South
Carolina
Jobs-Economic
Development
Authority
,
South
Carolina
Episcopal
Home
at
Still
Hopes
Obligated
Group,
Revenue,
2017,
5%,
4/01/52
........................................................
1,750,000
1,844,097
South
Carolina
Episcopal
Home
at
Still
Hopes
Obligated
Group,
Revenue,
2018
A,
Refunding,
5%,
4/01/48
............................................
3,500,000
3,692,360
South
Carolina
Episcopal
Home
at
Still
Hopes
Obligated
Group,
Revenue,
2018
A,
Refunding,
5.25%,
4/01/53
.........................................
11,000,000
11,713,680
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Semiannual
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)
South
Carolina
(continued)
South
Carolina
Public
Service
Authority
,
Revenue
,
2013
B
,
Refunding
,
5.125
%
,
12/01/43
........................................................
$
52,890,000
$
58,397,436
75,647,573
South
Dakota
0.2%
City
of
Sioux
Falls
,
Dow
Rummel
Village,
Revenue,
2016,
Refunding,
5%,
11/01/46
...............
11,110,000
10,933,907
Dow
Rummel
Village,
Revenue,
2017,
5%,
11/01/42
........................
3,000,000
3,061,980
13,995,887
Tennessee
1.4%
Johnson
City
Health
&
Educational
Facilities
Board
,
Mountain
States
Health
Alliance
Obligated
Group,
Revenue,
2000
A,
Refunding,
NATL
Insured,
Zero
Cpn.,
7/01/27
....................................
19,365,000
17,395,386
Mountain
States
Health
Alliance
Obligated
Group,
Revenue,
2000
A,
Refunding,
NATL
Insured,
Zero
Cpn.,
7/01/28
....................................
19,400,000
16,942,020
Mountain
States
Health
Alliance
Obligated
Group,
Revenue,
2000
A,
Refunding,
NATL
Insured,
Zero
Cpn.,
7/01/29
....................................
19,365,000
16,439,336
Mountain
States
Health
Alliance
Obligated
Group,
Revenue,
2000
A,
Refunding,
NATL
Insured,
Zero
Cpn.,
7/01/30
....................................
19,370,000
15,942,478
Memphis-Shelby
County
Airport
Authority
,
Revenue,
2010B,
Refunding,
5.75%,
7/01/23
.............................
5,000,000
5,054,850
Revenue,
2010B,
Refunding,
5.75%,
7/01/24
.............................
3,500,000
3,547,215
Metropolitan
Government
of
Nashville
&
Davidson
County
Health
&
Educational
Facilities
Board
,
Vanderbilt
University
Medical
Center
Obligated
Group
,
Revenue
,
2016
A
,
5
%
,
7/01/40
................................................
10,000,000
11,561,400
c
Nashville
Metropolitan
Development
&
Housing
Agency
,
Tax
Allocation
,
144A,
2018
,
5.125
%
,
6/01/36
...................................................
900,000
944,892
87,827,577
Texas
7.8%
Central
Texas
Regional
Mobility
Authority
,
Revenue,
2010,
Zero
Cpn.,
1/01/35
....................................
3,000,000
2,006,070
Revenue,
2010,
Zero
Cpn.,
1/01/37
....................................
2,500,000
1,552,550
Revenue,
2010,
Zero
Cpn.,
1/01/38
....................................
2,405,000
1,439,994
Revenue,
2010,
Zero
Cpn.,
1/01/39
....................................
2,545,000
1,468,720
Revenue,
Senior
Lien,
2011,
Pre-Refunded,
5.75%,
1/01/31
..................
2,500,000
2,546,325
Revenue,
Senior
Lien,
2011,
Pre-Refunded,
6.25%,
1/01/46
..................
24,340,000
24,829,477
Central
Texas
Turnpike
System
,
Revenue,
First
Tier
,
2012-A
,
Pre-Refunded
,
5
%
,
8/15/41
.........................................................
5,000,000
5,468,550
c
City
of
Austin
,
Whisper
Valley
Public
Improvement
District,
Special
Assessment,
144A,
2019,
4.625%,
11/01/39
................................................
1,405,000
1,547,621
Whisper
Valley
Public
Improvement
District,
Special
Assessment,
144A,
2019,
4.75%,
11/01/48
.................................................
2,615,000
2,862,824
City
of
Celina
,
d
Special
Assessment,
2020,
Refunding,
BAM
Insured,
3%,
9/01/35
.............
1,020,000
1,042,838
d
Special
Assessment,
2020,
4.25%,
9/01/40
..............................
230,000
231,030
d
Special
Assessment,
2020,
4.375%,
9/01/49
.............................
1,845,000
1,855,572
c
Sutton
Fields
II
Public
Improvement
District,
Special
Assessment,
144A,
2019,
4.25%,
9/01/49
..................................................
3,065,000
3,199,554
c
City
of
Fort
Worth
,
Fort
Worth
Public
Improvement
District
No.
17
Rock
Creek
Ranch,
Special
Assessment,
144A,
2017,
5%,
9/01/27
................................
1,965,000
2,063,898
Fort
Worth
Public
Improvement
District
No.
17
Rock
Creek
Ranch,
Special
Assessment,
144A,
2017,
5%,
9/01/32
................................
1,270,000
1,301,623
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
97
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Texas
(continued)
c
City
of
Fort
Worth,
(continued)
Fort
Worth
Public
Improvement
District
No.
17
Rock
Creek
Ranch,
Special
Assessment,
144A,
2017,
5.125%,
9/01/37
.............................
$
1,650,000
$
1,668,464
Fort
Worth
Public
Improvement
District
No.
17
Rock
Creek
Ranch,
Special
Assessment,
144A,
2018,
5%,
9/01/27
................................
1,605,000
1,656,119
Fort
Worth
Public
Improvement
District
No.
17
Rock
Creek
Ranch,
Special
Assessment,
144A,
2018,
5%,
9/01/32
................................
1,550,000
1,582,612
Fort
Worth
Public
Improvement
District
No.
17
Rock
Creek
Ranch,
Special
Assessment,
144A,
2018,
5%,
9/01/37
................................
2,000,000
2,007,740
City
of
Lago
Vista
,
Tessera
on
Lake
Travis
Public
Improvement
District,
Special
Assessment,
2020,
Refunding,
3.125%,
9/01/30
........................................
300,000
303,348
Tessera
on
Lake
Travis
Public
Improvement
District,
Special
Assessment,
2020,
Refunding,
3.75%,
9/01/42
.........................................
1,045,000
1,056,307
Tessera
on
Lake
Travis
Public
Improvement
District,
Special
Assessment,
2020
A,
Refunding,
5%,
9/01/30
............................................
2,000,000
1,989,120
Tessera
on
Lake
Travis
Public
Improvement
District,
Special
Assessment,
2020
A,
Refunding,
5.125%,
9/01/35
........................................
2,070,000
2,057,166
Tessera
on
Lake
Travis
Public
Improvement
District,
Special
Assessment,
2020
A,
Refunding,
5.5%,
9/01/40
..........................................
2,715,000
2,708,457
Tessera
on
Lake
Travis
Public
Improvement
District,
Special
Assessment,
2020B,
Refunding,
4.875%,
9/01/50
........................................
2,500,000
2,525,625
City
of
Leander
,
Oak
Creek
Public
Improvement
District,
Special
Assessment,
2020,
Refunding,
3.25%,
9/01/32
..................................................
530,000
550,839
Oak
Creek
Public
Improvement
District,
Special
Assessment,
2020,
Refunding,
3.25%,
9/01/38
..................................................
1,275,000
1,293,883
Oak
Creek
Public
Improvement
District,
Special
Assessment,
2020,
Refunding,
3.25%,
9/01/44
..................................................
1,490,000
1,490,000
c
City
of
Princeton
,
Arcadia
Farms
Public
Improvement
District,
Special
Assessment,
144A,
2020,
2.875%,
9/01/25
.................................................
152,000
153,751
Arcadia
Farms
Public
Improvement
District,
Special
Assessment,
144A,
2020,
3.375%,
9/01/30
.................................................
180,000
184,147
Arcadia
Farms
Public
Improvement
District,
Special
Assessment,
144A,
2020,
3.875%,
9/01/40
.................................................
650,000
667,648
Arcadia
Farms
Public
Improvement
District,
Special
Assessment,
144A,
2020,
4.125%,
9/01/50
.................................................
936,000
963,462
Winchester
Public
Improvement
District,
Special
Assessment,
144A,
2020,
2.75%,
9/01/25
........................................................
250,000
253,870
Winchester
Public
Improvement
District,
Special
Assessment,
144A,
2020,
3.25%,
9/01/30
........................................................
200,000
207,276
Winchester
Public
Improvement
District,
Special
Assessment,
144A,
2020,
3.75%,
9/01/40
........................................................
470,000
487,155
Winchester
Public
Improvement
District,
Special
Assessment,
144A,
2020,
4%,
9/01/50
........................................................
675,000
707,953
c
City
of
Royse
City
,
Creekshaw
Public
Improvement
District,
Special
Assessment,
144A,
2020,
3.625%,
9/15/30
........................................................
225,000
229,511
Creekshaw
Public
Improvement
District,
Special
Assessment,
144A,
2020,
4.375%,
9/15/30
........................................................
210,000
213,091
Creekshaw
Public
Improvement
District,
Special
Assessment,
144A,
2020,
4.125%,
9/15/40
........................................................
590,000
600,762
Creekshaw
Public
Improvement
District,
Special
Assessment,
144A,
2020,
4.875%,
9/15/40
........................................................
375,000
380,993
Creekshaw
Public
Improvement
District,
Special
Assessment,
144A,
2020,
4.375%,
9/15/50
........................................................
715,000
728,020
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Semiannual
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)
Texas
(continued)
c
City
of
Royse
City,
(continued)
Creekshaw
Public
Improvement
District,
Special
Assessment,
144A,
2020,
5.125%,
9/15/50
........................................................
$
575,000
$
584,562
Waterscape
Public
Improvement
District,
Special
Assessment,
144A,
2019,
4.375%,
9/15/39
........................................................
610,000
649,229
Waterscape
Public
Improvement
District,
Special
Assessment,
144A,
2019,
4.5%,
9/15/48
........................................................
1,260,000
1,333,042
City
of
San
Marcos
,
Whisper
Public
Improvement
District,
Special
Assessment,
2020,
4.375%,
9/01/25
.
270,000
274,973
Whisper
Public
Improvement
District,
Special
Assessment,
2020,
4.875%,
9/01/30
.
400,000
414,888
Whisper
Public
Improvement
District,
Special
Assessment,
2020,
5.375%,
9/01/40
.
1,500,000
1,554,945
Whisper
Public
Improvement
District,
Special
Assessment,
2020,
5.625%,
9/01/50
.
1,500,000
1,564,065
Clifton
Higher
Education
Finance
Corp.
,
Uplift
Education
,
Revenue
,
A
,
5
%
,
12/01/45
.
3,855,000
4,131,018
Dallas/Fort
Worth
International
Airport
,
Revenue
,
2013B
,
5
%
,
11/01/44
...........
11,385,000
12,195,384
El
Paso
Downtown
Development
Corp.
,
Revenue
,
2013
A
,
7.25
%
,
8/15/38
........
15,000,000
17,833,650
Grand
Parkway
Transportation
Corp.
,
Revenue,
2013
B,
Zero
Cpn.,
10/01/45
..................................
10,000,000
11,382,600
Revenue,
First
Tier,
2013
A,
5.125%,
10/01/43
............................
2,850,000
2,967,733
Revenue,
First
Tier,
2020
C,
Refunding,
4%,
10/01/45
......................
6,000,000
7,046,340
Revenue,
First
Tier,
2020
C,
Refunding,
4%,
10/01/49
......................
1,500,000
1,747,335
Harris
County
Cultural
Education
Facilities
Finance
Corp.
,
Brazos
Presbyterian
Homes
Obligated
Group,
Revenue,
2013
B,
Pre-Refunded,
7%,
1/01/43
........................................................
3,000,000
3,450,480
Brazos
Presbyterian
Homes
Obligated
Group,
Revenue,
2013
B,
Pre-Refunded,
7%,
1/01/48
........................................................
5,250,000
6,038,340
Brazos
Presbyterian
Homes
Obligated
Group,
Revenue,
2016,
Refunding,
5%,
1/01/48
........................................................
5,000,000
5,155,550
Harris
County-Houston
Sports
Authority
,
Revenue,
Third
Lien
,
2004A-3
,
NATL
Insured
,
Zero
Cpn.,
11/15/37
................................................
3,700,000
1,506,381
Mesquite
Health
Facilities
Development
Corp.
,
Christian
Care
Centers,
Inc.
Obligated
Group,
Revenue,
2014,
Refunding,
5%,
2/15/36
........................................................
1,000,000
865,620
Christian
Care
Centers,
Inc.
Obligated
Group,
Revenue,
2014,
Refunding,
5.125%,
2/15/42
........................................................
3,750,000
3,119,925
Christian
Care
Centers,
Inc.
Obligated
Group,
Revenue,
2016,
Refunding,
5%,
2/15/35
........................................................
5,175,000
4,524,813
New
Hope
Cultural
Education
Facilities
Finance
Corp.
,
Cardinal
Bay,
Inc.,
Revenue,
D,
6%,
7/01/26
.............................
130,000
123,373
Cardinal
Bay,
Inc.,
Revenue,
D,
7%,
7/01/51
.............................
5,110,000
4,404,002
CHF-Collegiate
Housing
College
Station
I
LLC,
Revenue,
2014A,
5%,
4/01/29
....
2,190,000
2,196,241
CHF-Collegiate
Housing
College
Station
I
LLC,
Revenue,
2014A,
5%,
4/01/46
....
1,500,000
1,441,365
CHF-Collegiate
Housing
Corpus
Christi
II
LLC,
Revenue,
A,
5%,
4/01/31
........
1,300,000
1,263,444
CHF-Collegiate
Housing
Corpus
Christi
II
LLC,
Revenue,
A,
5%,
4/01/48
........
2,500,000
2,261,225
CHF-Collegiate
Housing
Island
Campus
LLC,
Revenue,
2017A,
5%,
4/01/42
.....
4,500,000
4,349,925
CHF-Collegiate
Housing
Stephenville
III
LLC,
Revenue,
A,
Pre-Refunded,
5%,
4/01/47
........................................................
10,420,000
12,276,323
CHF-Stephenville
LLC,
Revenue,
2013
A,
Pre-Refunded,
6%,
4/01/45
..........
3,000,000
3,381,990
c
Cityscape
Schools,
Inc.,
Revenue,
144A,
2019
A,
5%,
8/15/39
................
500,000
526,975
c
Cityscape
Schools,
Inc.,
Revenue,
144A,
2019
A,
5%,
8/15/51
................
1,570,000
1,635,406
Longhorn
Village
Obligated
Group,
Revenue,
2017,
Refunding,
5%,
1/01/42
......
5,000,000
5,373,850
Longhorn
Village
Obligated
Group,
Revenue,
2017,
Refunding,
5%,
1/01/47
......
4,595,000
4,923,451
Morningside
Ministries
Obligated
Group,
Revenue,
2013,
6.5%,
1/01/43
.........
4,350,000
4,570,589
Morningside
Ministries
Obligated
Group,
Revenue,
2020A,
5%,
1/01/55
.........
4,100,000
4,169,577
MRC
Crestview
Obligated
Group,
Revenue,
2016,
Refunding,
5%,
11/15/36
......
1,020,000
1,066,920
MRC
Crestview
Obligated
Group,
Revenue,
2016,
Refunding,
5%,
11/15/46
......
4,100,000
4,216,317
NCCD-College
Station
Properties
LLC,
Revenue,
2015A,
5%,
7/01/47
..........
30,000,000
24,900,000
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
99
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Texas
(continued)
New
Hope
Cultural
Education
Facilities
Finance
Corp.,
(continued)
Presbyterian
Village
North
Obligated
Group,
Revenue,
2018,
Refunding,
5%,
10/01/39
.......................................................
$
2,750,000
$
2,782,698
Presbyterian
Village
North
Obligated
Group,
Revenue,
2018,
Refunding,
5.25%,
10/01/49
.......................................................
12,600,000
12,764,934
Quality
Senior
Housing
Foundation
of
East
Texas,
Inc.,
Revenue,
Second
Tier,
2019
B,
5.5%,
12/01/54
................................................
15,000,000
12,523,650
Quality
Senior
Housing
Foundation
of
East
Texas,
Inc.,
Revenue,
Third
Tier,
2019
C,
6%,
12/01/54
...................................................
7,490,000
6,011,998
Wesleyan
Homes
Obligated
Group,
Revenue,
2014,
5.5%,
1/01/43
............
3,200,000
3,253,888
Wesleyan
Homes
Obligated
Group,
Revenue,
2014,
5.5%,
1/01/49
............
1,000,000
1,013,350
Wesleyan
Homes
Obligated
Group,
Revenue,
2019,
Refunding,
5%,
1/01/50
.....
1,180,000
1,149,792
Wesleyan
Homes
Obligated
Group,
Revenue,
2019,
Refunding,
5%,
1/01/55
.....
4,400,000
4,212,032
North
Texas
Tollway
Authority
,
North
Texas
Tollway
System,
Revenue,
First
Tier,
2011B,
Refunding,
5%,
1/01/38
..
10,000,000
10,122,400
North
Texas
Tollway
System,
Revenue,
First
Tier,
I,
Refunding,
6.5%,
1/01/43
.....
25,000,000
30,267,500
Special
Projects
System,
Revenue,
2011
B,
Pre-Refunded,
Zero
Cpn.,
9/01/37
....
7,500,000
4,228,950
Special
Projects
System,
Revenue,
2011
C,
Pre-Refunded,
Zero
Cpn.,
9/01/43
....
10,000,000
13,746,000
Special
Projects
System,
Revenue,
2011
C,
Pre-Refunded,
Zero
Cpn.,
9/01/45
....
25,000,000
37,187,000
c
Northwood
Municipal
Utility
District
No.
1
,
GO,
144A,
2020,
Refunding,
3.5%,
8/01/25
..............................
1,295,000
1,300,957
GO,
144A,
2020,
Refunding,
4%,
8/01/31
................................
1,070,000
1,075,275
Red
River
Education
Finance
Corp.
,
Houston
Baptist
University
,
Revenue
,
2017
,
Refunding
,
5.5
%
,
10/01/46
...........................................
4,250,000
4,643,720
Red
River
Health
Facilities
Development
Corp.
,
e
Eden
Home,
Inc.
Obligated
Group,
Revenue,
2012,
7.25%,
12/15/42
...........
11,000,000
7,287,500
Wichita
Falls
Retirement
Foundation
Obligated
Group,
Revenue,
2012,
5.5%,
1/01/32
........................................................
1,500,000
1,527,225
Wichita
Falls
Retirement
Foundation
Obligated
Group,
Revenue,
2012,
5.125%,
1/01/41
........................................................
2,000,000
2,015,840
Tarrant
County
Cultural
Education
Facilities
Finance
Corp.
,
Cook
Children's
Medical
Center
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
12/01/45
.......................................................
1,000,000
1,144,920
Cumberland
Rest,
Inc.
(The),
Revenue,
A-1,
Refunding,
5%,
10/01/49
..........
5,125,000
5,327,745
Texas
Municipal
Gas
Acquisition
&
Supply
Corp.
III
,
Revenue,
2012,
5%,
12/15/30
........................................
25,000,000
26,731,750
Revenue,
2012,
5%,
12/15/31
........................................
24,500,000
26,143,460
Revenue,
2012,
5%,
12/15/32
........................................
10,000,000
10,647,800
Texas
Transportation
Commission
,
Revenue,
First
Tier,
2019A,
Zero
Cpn.,
8/01/46
...........................
3,000,000
966,600
Revenue,
First
Tier,
2019A,
Zero
Cpn.,
8/01/47
...........................
5,750,000
1,757,948
Revenue,
First
Tier,
2019A,
Zero
Cpn.,
8/01/51
...........................
3,500,000
858,795
Revenue,
First
Tier,
2019A,
Zero
Cpn.,
8/01/52
...........................
4,000,000
926,560
Revenue,
First
Tier,
2019A,
Zero
Cpn.,
8/01/53
...........................
400,000
87,632
Town
of
Ponder
,
Special
Assessment,
2017,
5%,
9/01/45
.................................
500,000
545,545
Special
Assessment,
2017,
5%,
9/01/47
.................................
865,000
943,283
d
Viridian
Municipal
Management
District
,
Viridian
Public
Improvement
District,
Special
Assessment,
2020,
2.375%,
12/01/25
.
250,000
250,152
Viridian
Public
Improvement
District,
Special
Assessment,
2020,
2.875%,
12/01/30
.
258,000
258,119
Viridian
Public
Improvement
District,
Special
Assessment,
2020,
3.125%,
12/01/35
.
415,000
415,187
Viridian
Public
Improvement
District,
Special
Assessment,
2020,
3.375%,
12/01/40
.
486,000
486,214
Viridian
Public
Improvement
District,
Special
Assessment,
2020,
3.5%,
12/01/47
..
835,000
835,367
Wood
County
Central
Hospital
District
,
East
Texas
Medical
Center
Quitman
,
Revenue
,
2011
,
Pre-Refunded
,
6
%
,
11/01/41
.....................................
9,350,000
9,958,498
496,906,095
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Semiannual
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)
Utah
0.1%
Salt
Lake
City
Corp.
,
Airport
,
Revenue
,
2018A
,
5.25
%
,
7/01/48
.................
$
5,600,000
$
6,733,720
c
Utah
Charter
School
Finance
Authority
,
Mountain
West
Montessori
Academy,
Inc.,
Revenue,
144A,
2020A,
5%,
6/15/39
...
475,000
499,463
Mountain
West
Montessori
Academy,
Inc.,
Revenue,
144A,
2020A,
5%,
6/15/49
...
825,000
854,073
8,087,256
Virginia
1.4%
Farmville
Industrial
Development
Authority
,
Longwood
Housing
Foundation
LLC,
Revenue,
2018
A,
Refunding,
5%,
1/01/43
...
500,000
524,260
Longwood
Housing
Foundation
LLC,
Revenue,
2018
A,
Refunding,
5%,
1/01/48
...
500,000
521,415
Longwood
Housing
Foundation
LLC,
Revenue,
2020
A,
Refunding,
5%,
1/01/40
...
2,000,000
2,119,340
Longwood
Housing
Foundation
LLC,
Revenue,
2020
A,
Refunding,
5%,
1/01/50
...
2,700,000
2,827,953
Longwood
Housing
Foundation
LLC,
Revenue,
2020
A,
Refunding,
5%,
1/01/59
...
2,000,000
2,070,580
Henrico
County
Economic
Development
Authority
,
Virginia
United
Methodist
Homes,
Inc.
Obligated
Group,
Revenue,
2019A,
5%,
6/01/44
........................................................
3,550,000
3,606,694
Virginia
United
Methodist
Homes,
Inc.
Obligated
Group,
Revenue,
2019A,
5%,
6/01/49
........................................................
4,065,000
4,111,544
Norfolk
Economic
Development
Authority
,
Sentara
Healthcare
Obligated
Group
,
Revenue
,
2012
B
,
Refunding
,
5
%
,
11/01/43
..............................
17,575,000
18,691,364
Roanoke
Economic
Development
Authority
,
Carilion
Clinic
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
7/01/47
.......
1,000,000
1,571,120
Carilion
Clinic
Obligated
Group,
Revenue,
2020
A,
Refunding,
4%,
7/01/51
.......
1,000,000
1,141,360
Virginia
Small
Business
Financing
Authority
,
95
Express
Lanes
LLC,
Revenue,
Senior
Lien,
2017,
5%,
1/01/40
.............
8,000,000
8,298,400
Elizabeth
River
Crossings
OpCo
LLC,
Revenue,
Senior
Lien,
2012,
6%,
1/01/37
...
6,485,000
6,951,206
Elizabeth
River
Crossings
OpCo
LLC,
Revenue,
Senior
Lien,
2012,
5.5%,
1/01/42
.
35,790,000
37,558,742
89,993,978
Washington
1.6%
Greater
Wenatchee
Regional
Events
Center
Public
Facilities
District
,
Revenue
,
A
,
5.5
%
,
9/01/42
....................................................
10,000,000
9,899,300
Ocean
Shores
Local
Improvement
District
,
Special
Assessment
,
2011
,
7.25
%
,
2/01/31
3,040,000
3,749,931
Washington
Economic
Development
Finance
Authority
,
e
Coalview
Centralia
LLC,
Revenue,
2013,
8.25%,
8/01/25
....................
3,800,000
2,090,000
e
Coalview
Centralia
LLC,
Revenue,
2013,
9.5%,
8/01/25
.....................
12,855,000
7,070,250
f
Propeller
Airports
Paine
Field
LLC,
Revenue,
A,
Mandatory
Put,
6.5%,
3/01/24
....
24,750,000
25,733,565
Washington
Health
Care
Facilities
Authority
,
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-2,
Refunding,
5%,
8/01/44
15,500,000
18,691,760
Providence
St.
Joseph
Health
Obligated
Group,
Revenue,
2012A,
5%,
10/01/42
...
19,725,000
20,894,890
c
Washington
State
Housing
Finance
Commission
,
Presbyterian
Retirement
Communities
Northwest
Obligated
Group,
Revenue,
144A,
2019A,
5%,
1/01/49
..............................................
1,500,000
1,513,755
Presbyterian
Retirement
Communities
Northwest
Obligated
Group,
Revenue,
144A,
2019A,
5%,
1/01/55
..............................................
1,800,000
1,808,802
Presbyterian
Retirement
Communities
Northwest
Obligated
Group,
Revenue,
144A,
A,
Refunding,
5%,
1/01/46
.........................................
2,250,000
2,270,497
Presbyterian
Retirement
Communities
Northwest
Obligated
Group,
Revenue,
144A,
A,
Refunding,
5%,
1/01/51
.........................................
1,700,000
1,709,962
Spokane
United
Methodist
Homes
Obligated
Group,
Revenue,
144A,
2019,
5%,
1/01/55
........................................................
9,020,000
8,210,726
103,643,438
West
Virginia
0.1%
County
of
Kanawha
,
West
Virginia
State
University
Foundation,
Inc.
,
Revenue
,
2013
,
6.75
%
,
7/01/45
...................................................
6,650,000
6,852,226
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
101
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Wisconsin
1.6%
Public
Finance
Authority
,
A&T
Real
Estate
Foundation
LLC,
Revenue,
2019
B,
5%,
6/01/39
.............
$
1,595,000
$
1,685,038
A&T
Real
Estate
Foundation
LLC,
Revenue,
2019
B,
5%,
6/01/44
.............
1,900,000
1,986,146
A&T
Real
Estate
Foundation
LLC,
Revenue,
2019
B,
5%,
6/01/49
.............
3,975,000
4,134,119
ACTS
Retirement-Life
Communities,
Inc.
Obligated
Group,
Revenue,
2020A,
5%,
11/15/41
.......................................................
1,205,000
1,428,214
Adams-Columbia
Electric
Cooperative,
Revenue,
2010A,
5.5%,
12/01/40
........
6,755,000
6,839,505
Blue
Ridge
Healthcare
Obligated
Group,
Revenue,
2020
A,
Refunding,
4%,
1/01/45
1,440,000
1,607,703
Celanese
US
Holdings
LLC,
Revenue,
2016C,
Refunding,
4.3%,
11/01/30
.......
4,000,000
4,375,720
Coral
Academy
of
Science
Las
Vegas,
Revenue,
2017
A,
5%,
7/01/45
..........
2,805,000
3,105,836
Coral
Academy
of
Science
Las
Vegas,
Revenue,
2017
A,
5%,
7/01/53
..........
4,345,000
4,793,621
c
Eno
River
Academy
Holdings,
Inc.,
Revenue,
144A,
2020
A,
5%,
6/15/40
........
815,000
876,313
c
Eno
River
Academy
Holdings,
Inc.,
Revenue,
144A,
2020
A,
5%,
6/15/54
........
1,380,000
1,457,542
c
Friends
Homes
Obligated
Group,
Revenue,
144A,
2019,
Refunding,
5%,
9/01/39
..
1,230,000
1,272,324
c
Friends
Homes
Obligated
Group,
Revenue,
144A,
2019,
Refunding,
5%,
9/01/49
..
6,600,000
6,714,840
c
Friends
Homes
Obligated
Group,
Revenue,
144A,
2019,
Refunding,
5%,
9/01/54
..
1,920,000
1,939,392
c
Masonic
&
Eastern
Star
Home
of
NC,
Inc.
Obligated
Group,
Revenue,
144A,
2017,
Refunding,
5%,
3/01/37
............................................
625,000
658,931
c
Masonic
&
Eastern
Star
Home
of
NC,
Inc.
Obligated
Group,
Revenue,
144A,
2017,
Refunding,
5%,
3/01/52
............................................
4,100,000
4,234,480
c,d
Masonic
&
Eastern
Star
Home
of
NC,
Inc.
Obligated
Group,
Revenue,
144A,
2020A,
5.25%,
3/01/45
..................................................
1,665,000
1,772,343
c,d
Masonic
&
Eastern
Star
Home
of
NC,
Inc.
Obligated
Group,
Revenue,
144A,
2020A,
5.25%,
3/01/55
..................................................
6,810,000
7,195,037
c
UMA
Education,
Inc.,
Revenue,
144A,
2019
A,
Refunding,
5%,
10/01/34
.........
8,970,000
9,576,641
c
UMA
Education,
Inc.,
Revenue,
144A,
2019
A,
Refunding,
5%,
10/01/39
.........
8,500,000
8,956,195
c
WFCS
Holdings
LLC,
Revenue,
144A,
2020
A-1,
5%,
1/01/55
.................
4,500,000
4,503,150
Wisconsin
Health
&
Educational
Facilities
Authority
,
Beaver
Dam
Community
Hospitals,
Inc.,
Revenue,
2013
A,
Pre-Refunded,
5.25%,
8/15/34
........................................................
5,000,000
5,717,500
Chiara
Communities,
Inc.,
Revenue,
2018
C,
7%,
7/01/43
...................
1,000,000
897,620
Chiara
Communities,
Inc.,
Revenue,
2018
C,
7.5%,
7/01/53
..................
2,750,000
2,494,333
St.
John's
Communities,
Inc.
Obligated
Group,
Revenue,
2015B,
Refunding,
5%,
9/15/45
........................................................
3,500,000
3,543,785
St.
John's
Communities,
Inc.
Obligated
Group,
Revenue,
2018
A,
5%,
9/15/45
....
3,500,000
3,563,980
St.
John's
Communities,
Inc.
Obligated
Group,
Revenue,
2018
A,
5%,
9/15/50
....
500,000
508,430
Wisconsin
Housing
&
Economic
Development
Authority
,
Revenue
,
2019
C
,
FNMA
Insured
,
2.75
%
,
9/01/39
.............................................
3,000,000
3,141,240
98,979,978
Wyoming
0.1%
West
Park
Hospital
District
,
Revenue
,
2011A
,
7
%
,
6/01/40
.....................
5,500,000
5,699,595
Wyoming
Community
Development
Authority
,
CHF-Wyoming
LLC,
Revenue,
2011,
6.25%,
7/01/31
.......................
600,000
611,700
CHF-Wyoming
LLC,
Revenue,
2011,
6.5%,
7/01/43
........................
1,600,000
1,625,968
7,937,263
U.S.
Territories
9.5%
District
of
Columbia
2.7%
District
of
Columbia
,
American
Society
of
Hematology,
Inc.
(The),
Revenue,
2009,
5%,
7/01/42
.......
9,515,000
10,208,929
American
Society
of
Hematology,
Inc.
(The),
Revenue,
2009,
5%,
7/01/36
.......
1,500,000
1,615,380
Association
of
American
Medical
Colleges,
Revenue,
2011
B,
Pre-Refunded,
5.25%,
10/01/36
.......................................................
12,425,000
13,106,139
Center
for
Strategic
International
Studies,
Inc.,
Revenue,
2011,
Pre-Refunded,
6.375%,
3/01/31
.................................................
4,440,000
4,574,843
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Semiannual
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)
U.S.
Territories
(continued)
District
of
Columbia
(continued)
District
of
Columbia,
(continued)
Center
for
Strategic
International
Studies,
Inc.,
Revenue,
2011,
Pre-Refunded,
6.625%,
3/01/41
.................................................
$
5,500,000
$
5,672,975
Methodist
Home
of
the
District
of
Columbia
Obligated
Group,
Revenue,
2009A,
Refunding,
5.125%,
1/01/35
........................................
1,565,000
1,417,671
Methodist
Home
of
the
District
of
Columbia
Obligated
Group,
Revenue,
2009A,
Refunding,
5.25%,
1/01/39
.........................................
1,015,000
908,110
Tobacco
Settlement
Financing
Corp.,
Revenue,
2001,
6.5%,
5/15/33
...........
10,520,000
11,778,823
Tobacco
Settlement
Financing
Corp.,
Revenue,
2002,
Zero
Cpn.,
6/15/46
........
175,000,000
35,798,000
Metropolitan
Washington
Airports
Authority
,
Dulles
Toll
Road
,
Revenue,
Second
Lien
,
2009C
,
AGMC
Insured
,
6.5
%
,
10/01/41
.................................
60,145,000
75,718,345
Washington
Convention
&
Sports
Authority
,
Tax
Allocation,
Senior
Lien
,
2010-A
,
5
%
,
10/01/40
........................................................
10,000,000
10,008,600
170,807,815
Guam
0.3%
Antonio
B
Won
Pat
International
Airport
Authority
,
Revenue,
2013B,
AGMC
Insured,
5.5%,
10/01/33
..........................
2,000,000
2,164,100
Revenue,
2013B,
AGMC
Insured,
5.75%,
10/01/43
.........................
3,000,000
3,239,790
Territory
of
Guam
,
Revenue
,
2011A
,
6.5
%
,
11/01/40
.........................
10,380,000
10,483,592
15,887,482
Pacific
Islands
0.2%
Northern
Mariana
Island
Ports
Authority
,
Revenue
,
1998A
,
6.6
%
,
3/15/28
.........
10,025,000
9,700,591
Puerto
Rico
6.3%
Children's
Trust
Fund
,
Revenue,
5.5%,
5/15/39
.............................................
9,500,000
9,558,520
Revenue,
2002,
5.625%,
5/15/43
......................................
2,500,000
2,512,700
e
Commonwealth
of
Puerto
Rico
,
GO
,
2014A
,
8
%
,
7/01/35
......................
25,000,000
15,281,250
GDB
Debt
Recovery
Authority
of
Puerto
Rico
,
7.5
%
,
8/20/40
...................
22,817,284
15,658,361
e
Puerto
Rico
Electric
Power
Authority
,
Revenue,
2013A-RSA-1,
6.75%,
7/01/36
................................
29,750,000
20,973,750
Revenue,
2013A-RSA-1,
7%,
7/01/43
...................................
5,000,000
3,531,250
Revenue,
2013A-RSA-1,
7.25%,
7/01/30
................................
25,000,000
17,718,750
Revenue,
A-4-RSA-1
2016
A-4,
10%,
7/01/19
.............................
5,500,000
4,186,875
Revenue,
B-2-RSA-1
2016
B-4,
10%,
7/01/19
............................
5,500,000
4,186,875
Revenue,
E-1-RSA-1,
10%,
1/01/21
....................................
6,000,000
4,582,500
Revenue,
E-2-RSA-1,
10%,
7/01/21
....................................
6,000,000
4,582,500
Revenue,
E-3-RSA-1,
10%,
1/01/22
....................................
1,989,500
1,519,481
Revenue,
E-4-RSA-1,
10%,
7/01/22
....................................
1,989,499
1,519,480
Revenue,
WW-RSA-1,
5.5%,
7/01/38
...................................
16,355,000
11,346,281
Revenue,
XX-RSA-1,
5.25%,
7/01/40
...................................
35,000,000
24,193,750
Revenue,
XX-RSA-1,
5.75%,
7/01/36
...................................
23,620,000
16,474,950
Puerto
Rico
Highway
&
Transportation
Authority
,
Revenue
,
L
,
Refunding
,
AGMC
Insured
,
5.25
%
,
7/01/41
.............................................
1,725,000
1,859,964
Puerto
Rico
Housing
Finance
Authority
,
Revenue
,
2008
,
5.125
%
,
12/01/27
........
3,000,000
3,198,750
Puerto
Rico
Industrial
Tourist
Educational
Medical
&
Environmental
Control
Facilities
Financing
Authority
,
AES
Puerto
Rico
LP
,
Revenue
,
2000A
,
6.625
%
,
6/01/26
.....
16,835,000
17,424,225
Puerto
Rico
Infrastructure
Financing
Authority
,
Special
Tax
,
2005C
,
Refunding
,
AMBAC
Insured
,
5.5
%
,
7/01/27
..............................................
27,500,000
29,948,325
Puerto
Rico
Sales
Tax
Financing
Corp.
,
Sales
Tax,
Revenue,
A-1,
4.55%,
7/01/40
................................
393,000
418,537
Sales
Tax,
Revenue,
A-1,
4.75%,
7/01/53
................................
28,550,000
30,007,192
Sales
Tax,
Revenue,
A-1,
5%,
7/01/58
..................................
23,600,000
25,197,720
Sales
Tax,
Revenue,
A-1,
Zero
Cpn.,
7/01/46
.............................
141,421,000
40,569,442
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
103
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,
Zero
Cpn.,
7/01/51
.............................
$
82,259,000
$
17,004,581
Sales
Tax,
Revenue,
4.329%,
7/01/40
..................................
36,243,000
38,055,512
Sales
Tax,
Revenue,
A-2,
4.784%,
7/01/58
...............................
37,346,000
39,336,915
400,848,436
Total
U.S.
Territories
....................................................................
597,244,324
Total
Municipal
Bonds
(Cost
$5,558,689,985)
...................................
6,247,435,140
Total
Long
Term
Investments
(Cost
$5,613,805,583)
.............................
6,303,558,321
a
a
a
a
a
Short
Term
Investments
0.2%
Municipal
Bonds
0.2%
Georgia
0.0%
†
g
Athens-Clarke
County
Unified
Government
Development
Authority
,
University
of
Georgia
Athletic
Association,
Inc.
,
Revenue
,
2005
B
,
LOC
Wells
Fargo
Bank
NA
,
Daily
VRDN
and
Put
,
0.03
%
,
7/01/35
...................................
3,975,000
3,975,000
Tennessee
0.2%
g
Public
Building
Authority
of
Sevier
County
(The)
,
County
of
Knox
,
Revenue
,
V1-K-1
,
SPA
US
Bank
NA
,
Daily
VRDN
and
Put
,
0.03
%
,
6/01/34
.....................
11,700,000
11,700,000
Total
Municipal
Bonds
(Cost
$15,675,000)
......................................
15,675,000
Total
Short
Term
Investments
(Cost
$15,675,000
)
................................
15,675,000
a
Total
Investments
(Cost
$5,629,480,583)
98.8%
..................................
$6,319,233,321
Other
Assets,
less
Liabilities
1.2%
.............................................
74,284,828
Net
Assets
100.0%
...........................................................
$6,393,518,149
See
Abbreviations
on
page
153
.
†
Rounds
to
less
than
0.1%
of
net
assets.
a
See
Note
3(f)
regarding
investments
in
affiliated
management
investment
companies.
b
Fair
valued
using
significant
unobservable
inputs.
See
Note
11
regarding
fair
value
measurements.
c
Security
was
purchased
pursuant
to
Rule
144A
under
the
Securities
Act
of
1933
and
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.
At
August
31,
2020,
the
aggregate
value
of
these
securities
was
$548,746,433,
representing
8.6%
of
net
assets.
d
Security
purchased
on
a
when-issued
basis.
See
Note
1(b).
e
See
Note
7
regarding
defaulted
securities.
f
The
maturity
date
shown
represents
the
mandatory
put
date.
g
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
Massachusetts
Tax-Free
Income
Fund
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
104
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
Year
Ended
February
28,
2019
b
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
..........................................
$12.20
$11.47
$11.39
Income
from
investment
operations
c
:
Net
investment
income
d
..................................................
0.14
0.31
0.16
Net
realized
and
unrealized
gains
(losses)
....................................
(0.22)
0.74
0.08
Total
from
investment
operations
.............................................
(0.08)
1.05
0.24
Less
distributions
from:
Net
investment
income
...................................................
(0.14)
(0.32)
(0.16)
Net
asset
value,
end
of
period
...............................................
$11.98
$12.20
$11.47
Total
return
e
............................................................
(0.62)%
9.29%
2.12%
Ratios
to
average
net
assets
f
Expenses
g
.............................................................
0.86%
0.87%
0.86%
Net
investment
income
....................................................
2.38%
2.64%
2.88%
Supplemental
data
Net
assets,
end
of
period
(000’s)
.............................................
$53,723
$44,347
$20,086
Portfolio
turnover
rate
.....................................................
13.20%
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)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
105
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
2019
2018
2017
2016
a
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$12.20
$11.46
$11.47
$11.63
$11.94
$11.93
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.15
0.33
0.35
0.35
0.39
0.40
Net
realized
and
unrealized
gains
(losses)
(0.23)
0.75
(0.01)
(0.15)
(0.31)
0.01
Total
from
investment
operations
........
(0.08)
1.08
0.34
0.20
0.08
0.41
Less
distributions
from:
Net
investment
income
..............
(0.15)
(0.34)
(0.35)
(0.36)
(0.39)
(0.40)
Net
asset
value,
end
of
period
..........
$11.97
$12.20
$11.46
$11.47
$11.63
$11.94
Total
return
d
.......................
(0.62)%
9.55%
2.98%
1.66%
0.62%
3.50%
Ratios
to
average
net
assets
e
Expenses
.........................
0.71%
f
0.72%
f
0.71%
f
0.68%
0.67%
0.66%
Net
investment
income
...............
2.55%
2.79%
3.03%
3.02%
3.23%
3.38%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$255,532
$307,452
$314,235
$363,555
$375,435
$400,201
Portfolio
turnover
rate
................
13.20%
12.59%
6.58%
23.50%
7.16%
4.90%
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,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Massachusetts
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
106
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
2019
2018
2017
2016
a
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$12.35
$11.60
$11.61
$11.77
$12.07
$12.06
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.12
0.27
0.28
0.29
0.32
0.34
Net
realized
and
unrealized
gains
(losses)
(0.23)
0.76
(0.01)
(0.16)
(0.30)
—
Total
from
investment
operations
........
(0.11)
1.03
0.27
0.13
0.02
0.34
Less
distributions
from:
Net
investment
income
..............
(0.12)
(0.28)
(0.28)
(0.29)
(0.32)
(0.33)
Net
asset
value,
end
of
period
..........
$12.12
$12.35
$11.60
$11.61
$11.77
$12.07
Total
return
d
.......................
(0.89)%
8.95%
2.37%
1.08%
0.13%
2.89%
Ratios
to
average
net
assets
e
Expenses
.........................
1.26%
f
1.27%
f
1.26%
f
1.23%
1.22%
1.21%
Net
investment
income
...............
1.98%
2.24%
2.48%
2.47%
2.68%
2.83%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$28,734
$31,713
$33,253
$56,607
$60,441
$61,834
Portfolio
turnover
rate
................
13.20%
12.59%
6.58%
23.50%
7.16%
4.90%
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,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Massachusetts
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
107
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
Year
Ended
February
28,
2018
b
2020
a
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
..............................
$12.20
$11.46
$11.48
$11.76
Income
from
investment
operations
c
:
Net
investment
income
d
......................................
0.16
0.34
0.36
0.21
Net
realized
and
unrealized
gains
(losses)
........................
(0.22)
0.76
(0.02)
(0.28)
Total
from
investment
operations
.................................
(0.06)
1.10
0.34
(0.07)
Less
distributions
from:
Net
investment
income
.......................................
(0.16)
(0.36)
(0.36)
(0.21)
Net
asset
value,
end
of
period
...................................
$11.98
$12.20
$11.46
$11.48
Total
return
e
................................................
(0.47)%
9.69%
3.01%
(0.65)%
Ratios
to
average
net
assets
f
Expenses
before
waiver
and
payments
by
affiliates
...................
0.59%
0.60%
0.59%
0.60%
Expenses
net
of
waiver
and
payments
by
affiliates
....................
0.57
%
g
0.58%
g
0.57%
g
0.55%
Net
investment
income
........................................
2.68%
2.93%
3.17%
3.15%
Supplemental
data
Net
assets,
end
of
period
(000’s)
.................................
$12,438
$12,458
$1,284
$1,688
Portfolio
turnover
rate
.........................................
13.20%
12.59%
6.58%
23.50%
a
For
the
year
ended
February
29.
b
For
the
period
August
1,
2017
(effective
date)
to
February
28,
2018.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Massachusetts
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
108
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
2019
2018
2017
2016
a
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$12.20
$11.46
$11.48
$11.63
$11.94
$11.93
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.16
0.34
0.36
0.36
0.40
0.41
Net
realized
and
unrealized
gains
(losses)
(0.23)
0.75
(0.02)
(0.14)
(0.31)
0.01
Total
from
investment
operations
........
(0.07)
1.09
0.34
0.22
0.09
0.42
Less
distributions
from:
Net
investment
income
..............
(0.16)
(0.35)
(0.36)
(0.37)
(0.40)
(0.41)
Net
asset
value,
end
of
period
..........
$11.97
$12.20
$11.46
$11.48
$11.63
$11.94
Total
return
d
.......................
(0.58)%
9.65%
2.98%
1.84%
0.72%
3.60%
Ratios
to
average
net
assets
e
Expenses
.........................
0.61%
f
0.62%
f
0.61%
f
0.58%
0.57%
0.56%
Net
investment
income
...............
2.61%
2.89%
3.13%
3.12%
3.33%
3.48%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$105,718
$60,927
$50,814
$63,366
$34,909
$12,614
Portfolio
turnover
rate
................
13.20%
12.59%
6.58%
23.50%
7.16%
4.90%
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
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited),
August
31,
2020
Franklin
Massachusetts
Tax-Free
Income
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
109
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
97.0%
Massachusetts
97.0%
Acton
&
Boxborough
Regional
School
District
,
GO,
5%,
3/01/33
..................................................
$
2,095,000
$
2,766,636
GO,
3%,
3/01/34
..................................................
1,485,000
1,681,035
GO,
3%,
3/01/35
..................................................
2,130,000
2,393,438
Boston
Water
&
Sewer
Commission
,
Revenue,
Senior
Lien
,
2014A
,
4
%
,
11/01/28
...
4,400,000
5,006,760
City
of
Quincy
,
GO
,
2014
,
4
%
,
6/01/32
....................................
2,565,000
2,838,557
City
of
Worcester
,
GO,
2013,
3.25%,
11/01/25
..........................................
3,370,000
3,462,844
GO,
2013,
3.5%,
11/01/26
...........................................
3,000,000
3,099,360
GO,
2020
A,
3%,
2/01/42
............................................
1,685,000
1,806,522
Commonwealth
of
Massachusetts
,
GO,
2018A,
5%,
1/01/47
............................................
5,000,000
6,162,600
GO,
A,
5.25%,
4/01/42
..............................................
5,000,000
6,186,350
GO,
F,
4%,
11/01/29
................................................
6,000,000
6,416,100
Revenue,
2005,
Refunding,
AGMC,
NATL
Insured,
5.5%,
1/01/34
..............
11,900,000
16,605,974
Transportation
Fund,
Revenue,
2012A,
Pre-Refunded,
4%,
6/01/31
............
5,555,000
5,714,651
Transportation
Fund,
Revenue,
2016B,
4%,
6/01/45
........................
7,175,000
7,972,932
Transportation
Fund,
Revenue,
2017A,
5%,
6/01/47
........................
5,000,000
6,073,450
Transportation
Fund,
Revenue,
2018
A,
5%,
6/01/48
.......................
5,000,000
6,197,950
Transportation
Fund,
Revenue,
2019A,
5%,
6/01/49
........................
1,925,000
2,438,243
Massachusetts
Bay
Transportation
Authority
,
Revenue,
2020
B-1,
Refunding,
5%,
7/01/50
.............................
5,000,000
6,155,950
Revenue,
A,
5%,
7/01/40
............................................
5,000,000
5,879,500
Revenue,
A-1,
Refunding,
5.25%,
7/01/30
...............................
4,000,000
5,610,240
Revenue,
Senior
Lien,
B,
Refunding,
5%,
7/01/33
..........................
2,500,000
2,980,750
Massachusetts
Clean
Water
Trust
(The)
,
Revenue,
1999A,
5.75%,
8/01/29
......................................
250,000
251,082
Revenue,
2000-6,
5.5%,
8/01/30
......................................
195,000
195,792
Revenue,
2020,
Refunding,
3%,
8/01/38
.................................
1,580,000
1,762,759
Revenue,
2020,
Refunding,
3%,
8/01/39
.................................
1,605,000
1,784,696
Revenue,
2020,
Refunding,
3%,
8/01/40
.................................
1,635,000
1,812,397
Revenue,
7,
5.125%,
2/01/31
.........................................
260,000
260,970
Massachusetts
Development
Finance
Agency
,
Beth
Israel
Lahey
Health
Obligated
Group,
Revenue,
2015
F,
Refunding,
5%,
8/15/32
2,975,000
3,469,058
Beth
Israel
Lahey
Health
Obligated
Group,
Revenue,
2015
F,
Refunding,
5%,
8/15/34
5,000,000
5,801,950
Beth
Israel
Lahey
Health
Obligated
Group,
Revenue,
2016
I,
Refunding,
5%,
7/01/34
1,500,000
1,777,065
Brandeis
University,
Revenue,
2019
S-1,
Refunding,
5%,
10/01/38
.............
2,410,000
2,983,411
Broad
Institute,
Inc.
(The),
Revenue,
2011A,
Pre-Refunded,
5.375%,
4/01/41
.....
15,000,000
15,455,550
Broad
Institute,
Inc.
(The),
Revenue,
2017,
Refunding,
4%,
4/01/41
............
5,000,000
5,685,900
Dana-Farber
Cancer
Institute
Obligated
Group,
Revenue,
2016N,
5%,
12/01/46
...
6,890,000
8,022,509
Northeastern
University,
Revenue,
2014A,
5%,
3/01/44
.....................
5,000,000
5,539,000
Partners
Healthcare
System,
Inc.,
Revenue,
2012L,
Pre-Refunded,
5%,
7/01/41
...
5,000,000
5,198,650
Partners
Healthcare
System,
Inc.,
Revenue,
2016Q,
Refunding,
5%,
7/01/34
.....
5,000,000
5,985,000
Partners
Healthcare
System,
Inc.,
Revenue,
2017
S-1,
Refunding,
5%,
7/01/33
...
1,880,000
2,332,103
Partners
Healthcare
System,
Inc.,
Revenue,
2017
S-1,
Refunding,
4%,
7/01/41
...
7,500,000
8,452,725
Partners
Healthcare
System,
Inc.,
Revenue,
2020A-2,
Refunding,
4%,
7/01/41
....
1,000,000
1,152,920
President
&
Trustees
of
Williams
College,
Revenue,
2017S,
4%,
7/01/46
........
9,550,000
10,838,104
President
and
Fellows
of
Harvard
College,
Revenue,
2016
A,
Refunding,
5%,
7/15/33
5,000,000
6,168,300
President
and
Fellows
of
Harvard
College,
Revenue,
2016
A,
Refunding,
5%,
7/15/40
1,000,000
1,519,910
President
and
Fellows
of
Harvard
College,
Revenue,
2020
A,
Refunding,
5%,
10/15/30
.......................................................
1,250,000
1,761,525
Sterling
and
Francine
Clark
Art
Institute,
Revenue,
2011,
Pre-Refunded,
5%,
7/01/41
12,900,000
13,417,935
Trustees
of
Boston
College,
Revenue,
2017T,
Refunding,
5%,
7/01/42
..........
3,750,000
4,527,638
Trustees
of
Boston
University,
Revenue,
BB-1,
4%,
10/01/46
.................
5,000,000
5,479,750
Wellesley
College,
Revenue,
2018
L,
Refunding,
4%,
7/01/44
.................
6,160,000
7,118,619
Woods
Hole
Oceanographic
Institution,
Revenue,
2018,
Refunding,
5%,
6/01/35
..
1,200,000
1,510,836
Woods
Hole
Oceanographic
Institution,
Revenue,
2018,
Refunding,
5%,
6/01/36
..
1,000,000
1,254,260
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Massachusetts
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Semiannual
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)
Massachusetts
(continued)
Massachusetts
Development
Finance
Agency,
(continued)
Worcester
Polytechnic
Institute,
Revenue,
2012,
4%,
9/01/49
.................
$
4,825,000
$
4,959,376
Worcester
Polytechnic
Institute,
Revenue,
2017,
Refunding,
5%,
9/01/42
........
1,090,000
1,278,505
Worcester
Polytechnic
Institute,
Revenue,
2019,
4%,
9/01/44
.................
1,350,000
1,480,275
Massachusetts
Educational
Financing
Authority
,
Revenue,
2009
I,
6%,
1/01/28
........................................
1,350,000
1,374,975
Revenue,
2010A,
5.5%,
1/01/22
.......................................
3,000,000
3,009,660
Massachusetts
Health
&
Educational
Facilities
Authority
,
Southcoast
Hospitals
Group,
Inc.,
Revenue,
2009D,
5%,
7/01/39
..............
5,500,000
5,518,205
Trustees
of
Boston
College,
Revenue,
M2,
5.5%,
6/01/35
....................
8,600,000
12,751,564
Massachusetts
Housing
Finance
Agency
,
Revenue,
159,
FNMA
Insured,
4.05%,
12/01/32
...........................
1,160,000
1,191,599
Revenue,
162,
GNMA
Insured,
3.15%,
12/01/32
...........................
10,905,000
11,160,831
Revenue,
1979
A,
ETM,
7%,
4/01/21
...................................
215,000
223,129
Revenue,
2009C,
5.125%,
12/01/39
....................................
1,045,000
1,046,463
Revenue,
2009C,
5.35%,
12/01/49
.....................................
2,770,000
2,774,044
Revenue,
2012F,
3.15%,
12/01/32
.....................................
105,000
105,455
Revenue,
2012F,
3.45%,
12/01/37
.....................................
45,000
45,233
Revenue,
214,
GNMA
Insured,
2.55%,
12/01/34
...........................
1,000,000
1,049,400
Revenue,
214,
GNMA
Insured,
2.8%,
12/01/39
............................
4,000,000
4,184,720
Revenue,
A,
3.25%,
12/01/27
.........................................
4,000,000
4,182,400
Revenue,
A,
3.5%,
12/01/31
..........................................
5,805,000
6,031,801
Massachusetts
Port
Authority
,
Revenue,
2019-B,
5%,
7/01/44
........................................
5,000,000
6,169,650
Revenue,
2019-B,
5%,
7/01/49
........................................
5,000,000
6,110,100
Massachusetts
School
Building
Authority
,
Revenue,
2018
B,
5.25%,
2/15/48
.....................................
2,315,000
2,900,047
Revenue,
2019A,
5%,
2/15/44
........................................
1,000,000
1,258,430
Revenue,
2020
A,
4%,
8/15/45
........................................
8,000,000
9,533,680
Revenue,
Senior
Lien,
2011B,
Pre-Refunded,
5%,
10/15/41
..................
10,000,000
10,539,900
Revenue,
Senior
Lien,
2016C,
Refunding,
5%,
11/15/34
.....................
5,000,000
6,189,450
Massachusetts
State
College
Building
Authority
,
Revenue,
2003
B,
Refunding,
AGMC
Insured,
5.5%,
5/01/39
.................
5,000,000
7,667,750
Revenue,
2017
D,
Refunding,
4%,
5/01/38
...............................
4,350,000
5,047,261
Massachusetts
Transportation
Trust
Fund
,
Metropolitan
Highway
System,
Revenue,
2019
B-1,
Refunding,
5%,
1/01/37
......
1,015,000
1,302,407
Metropolitan
Highway
System,
Revenue,
Senior
Lien,
2019
A,
Refunding,
5%,
1/01/37
........................................................
2,750,000
3,459,720
Massachusetts
Water
Resources
Authority
,
Revenue,
2016C,
Refunding,
5%,
8/01/40
...............................
5,000,000
6,116,700
Revenue,
2018
B,
5%,
8/01/43
........................................
4,000,000
5,045,200
Revenue,
2020
B,
5%,
8/01/36
........................................
1,500,000
2,018,115
Revenue,
B,
Refunding,
AGMC
Insured,
5.25%,
8/01/28
.....................
5,490,000
7,441,860
Revenue,
B,
5%,
8/01/40
............................................
1,140,000
1,414,626
Revenue,
B,
5%,
8/01/42
............................................
3,145,000
3,884,735
Metropolitan
Boston
Transit
Parking
Corp.
,
Revenue,
2011,
5.25%,
7/01/36
.......................................
5,585,000
5,777,236
Revenue,
2011,
5%,
7/01/41
.........................................
7,500,000
7,723,350
Springfield
Water
&
Sewer
Commission
,
Revenue
,
2017C
,
5
%
,
4/15/37
...........
1,260,000
1,544,773
Town
of
Belmont
,
GO,
2019,
4%,
3/15/45
.............................................
3,020,000
3,488,341
GO,
2020,
3%,
6/01/33
.............................................
2,695,000
3,081,086
Town
of
Braintree
,
GO,
Refunding,
5%,
5/15/27
.........................................
2,000,000
2,594,720
GO,
2019,
3%,
6/01/35
.............................................
1,765,000
1,956,238
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Massachusetts
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
111
s
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Massachusetts
(continued)
Town
of
Natick
,
GO
,
2018
,
4
%
,
7/15/35
...................................
$
4,970,000
$
5,838,508
Town
of
Plymouth
,
GO
,
2017
,
4
%
,
5/01/47
.................................
5,000,000
5,645,500
University
of
Massachusetts
Building
Authority
,
Revenue,
Senior
Lien,
1,
Pre-Refunded,
5%,
11/01/44
......................
3,240,000
3,875,591
Revenue,
Senior
Lien,
1,
5%,
11/01/44
..................................
760,000
865,860
Revenue,
Senior
Lien,
2017-1,
5.25%,
11/01/42
...........................
5,000,000
6,202,100
Revenue,
Senior
Lien,
2019-1,
Refunding,
5%,
5/01/39
.....................
5,000,000
6,349,550
442,380,375
Total
Municipal
Bonds
(Cost
$409,199,801)
.....................................
442,380,375
a
a
a
a
Short
Term
Investments
1.1%
Municipal
Bonds
1.1%
Massachusetts
1.1%
a
Massachusetts
Health
&
Educational
Facilities
Authority
,
President
and
Fellows
of
Harvard
College
,
Revenue
,
R
,
Daily
VRDN
and
Put
,
0.01
%
,
11/01/49
...........
5,200,000
5,200,000
Total
Municipal
Bonds
(Cost
$5,200,000)
.......................................
5,200,000
Total
Short
Term
Investments
(Cost
$5,200,000
)
.................................
5,200,000
a
Total
Investments
(Cost
$414,399,801)
98.1%
...................................
$447,580,375
Other
Assets,
less
Liabilities
1.9%
.............................................
8,564,329
Net
Assets
100.0%
...........................................................
$456,144,704
See
Abbreviations
on
page
153
.
a
Variable
rate
demand
notes
(VRDNs)
are
obligations
which
contain
a
floating
or
variable
interest
rate
adjustment
formula
and
an
unconditional
right
of
demand
to
receive
payment
of
the
principal
balance
plus
accrued
interest
at
specified
dates.
Unless
otherwise
noted,
the
coupon
rate
is
determined
based
on
factors
including
supply
and
demand,
underlying
credit,
tax
treatment,
and
current
short
term
rates.
The
coupon
rate
shown
represents
the
rate
at
period
end.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Municipal
Green
Bond
Fund
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
112
a
Period
Ended
August
31,
2020
a
(unaudited)
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
...................................................................
$10.00
Income
from
investment
operations
b
:
Net
investment
income
c
...........................................................................
0.02
Net
realized
and
unrealized
gains
(losses)
.............................................................
0.41
Total
from
investment
operations
......................................................................
0.43
Less
distributions
from:
Net
investment
income
............................................................................
(0.08)
Net
asset
value,
end
of
period
........................................................................
$10.35
Total
return
d
.....................................................................................
(0.42)%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
........................................................
2.14%
Expenses
net
of
waiver
and
payments
by
affiliates
.........................................................
0.46%
f
Net
investment
income
.............................................................................
1.48%
Supplemental
data
Net
assets,
end
of
period
(000’s)
......................................................................
$51
Portfolio
turnover
rate
..............................................................................
3.21%
a
For
the
period
July
24,
2020
(effective
date)
to
August
31,
2020.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Municipal
Green
Bond
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
113
a
Period
Ended
August
31,
2020
a
(unaudited)
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
...................................................................
$10.00
Income
from
investment
operations
b
:
Net
investment
income
c
...........................................................................
0.02
Net
realized
and
unrealized
gains
(losses)
.............................................................
0.35
Total
from
investment
operations
......................................................................
0.37
Less
distributions
from:
Net
investment
income
............................................................................
(0.02)
Net
asset
value,
end
of
period
........................................................................
$10.35
Total
return
d
.....................................................................................
(0.42)%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
........................................................
2.12%
Expenses
net
of
waiver
and
payments
by
affiliates
.........................................................
0.46%
Net
investment
income
.............................................................................
1.53%
Supplemental
data
Net
assets,
end
of
period
(000’s)
......................................................................
$10
Portfolio
turnover
rate
..............................................................................
3.21%
a
For
the
period
July
24,
2020
(effective
date)
to
August
31,
2020.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Municipal
Green
Bond
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
114
a
Period
Ended
August
31,
2020
a
(unaudited)
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
...................................................................
$10.00
Income
from
investment
operations
b
:
Net
investment
income
c
...........................................................................
0.02
Net
realized
and
unrealized
gains
(losses)
.............................................................
0.35
Total
from
investment
operations
......................................................................
0.37
Less
distributions
from:
Net
investment
income
............................................................................
(0.02)
Net
asset
value,
end
of
period
........................................................................
$10.35
Total
return
d
.....................................................................................
(0.42)%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
........................................................
2.11%
Expenses
net
of
waiver
and
payments
by
affiliates
.........................................................
0.46%
Net
investment
income
.............................................................................
1.52%
Supplemental
data
Net
assets,
end
of
period
(000’s)
......................................................................
$5
Portfolio
turnover
rate
..............................................................................
3.21%
a
For
the
period
July
24,
2020
(effective
date)
to
August
31,
2020.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Municipal
Green
Bond
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
115
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a,b
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
......................................................
$10.35
$10.00
Income
from
investment
operations
c
:
Net
investment
income
d
..............................................................
0.07
0.03
Net
realized
and
unrealized
gains
(losses)
................................................
(0.04)
0.35
Total
from
investment
operations
.........................................................
0.03
0.38
Less
distributions
from:
Net
investment
income
...............................................................
(0.03)
(0.03)
Net
asset
value,
end
of
period
...........................................................
$10.35
$10.35
Total
return
e
........................................................................
0.73%
3.84%
Ratios
to
average
net
assets
f
Expenses
before
waiver
and
payments
by
affiliates
...........................................
2.26%
3.25%
Expenses
net
of
waiver
and
payments
by
affiliates
............................................
0.46%
g
0.46%
Net
investment
income
................................................................
1.45%
0.81%
Supplemental
data
Net
assets,
end
of
period
(000’s)
.........................................................
$5,182
$5,175
Portfolio
turnover
rate
.................................................................
3.21%
—
a
For
the
period
ended
October
1,
2019
(commencement
of
operations)
to
February
29,
2020.
b
For
the
year
ended
February
29.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited),
August
31,
2020
Franklin
Municipal
Green
Bond
Fund
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
116
a
a
Principal
Amount
a
Value
a
a
a
a
a
Commercial
Mortgage-Backed
Securities
2.0%
Diversified
Financial
Services
2.0%
California
Housing
Finance
,
2019-N
,
A
,
2.35
%
,
12/01/35
......................
$
98,968
$
102,150
Total
Commercial
Mortgage-Backed
Securities
(Cost
$98,968)
....................
102,150
Municipal
Bonds
97.1%
Arizona
5.9%
Arizona
State
University
,
Revenue
,
2016
B
,
5
%
,
7/01/42
......................
150,000
178,983
City
of
Phoenix
Civic
Improvement
Corp.
,
Water
System
,
Revenue,
Junior
Lien
,
2020
B
,
5
%
,
7/01/44
....................................................
100,000
130,494
309,477
California
23.3%
California
Infrastructure
&
Economic
Development
Bank
,
California
State
Teachers'
Retirement
System
,
Revenue
,
2019
,
5
%
,
8/01/49
..........................
180,000
227,423
City
of
Foster
City
,
GO
,
2020
,
4
%
,
8/01/32
.................................
100,000
120,262
Los
Angeles
County
Metropolitan
Transportation
Authority
,
Revenue
,
2019
A
,
5
%
,
7/01/44
.........................................................
150,000
190,611
Sacramento
Municipal
Utility
District
,
Electric
System
,
Revenue
,
2020
H
,
5
%
,
8/15/30
100,000
140,549
San
Francisco
Bay
Area
Rapid
Transit
District
,
GO
,
2019
F-1
,
3
%
,
8/01/36
........
150,000
167,259
Southern
California
Public
Power
Authority
,
Revenue
,
2020
A
,
Refunding
,
4
%
,
7/01/38
150,000
181,380
Transbay
Joint
Powers
Authority
,
Transbay
Redevelopment
Project
Tax
Increment
Re-
Development
Project
,
Tax
Allocation,
Senior
Lien
,
2020
A
,
5
%
,
10/01/34
.........
150,000
193,078
1,220,562
Colorado
3.5%
Board
of
Water
Commissioners
City
&
County
of
Denver
(The)
,
Revenue
,
2017A
,
5
%
,
9/15/47
.........................................................
150,000
185,157
Florida
5.6%
City
of
Tampa
,
Special
Assessment
,
2018
,
5
%
,
5/01/36
.......................
135,000
170,591
County
of
Palm
Beach
,
Water
&
Sewer
,
Revenue
,
2019
,
Refunding
,
4
%
,
10/01/31
...
100,000
125,260
295,851
Georgia
2.4%
Private
Colleges
&
Universities
Authority
,
Emory
University
,
Revenue
,
2019B
,
Refunding
,
5
%
,
9/01/48
.............................................
100,000
127,136
Louisiana
2.2%
a
Terrebonne
Levee
&
Conservation
District
,
Revenue
,
2020
B
,
Refunding
,
4
%
,
6/01/40
100,000
114,233
Maine
2.2%
City
of
Portland
,
General
Airport
,
Revenue
,
2019
,
Refunding
,
4
%
,
1/01/35
.........
100,000
113,051
Maryland
2.1%
Washington
Suburban
Sanitary
Commission
,
Revenue,
Second
Series
,
2019
B
,
3
%
,
6/01/35
.........................................................
100,000
112,581
Massachusetts
4.5%
Massachusetts
Clean
Water
Trust
(The)
,
Revenue
,
22
,
5
%
,
8/01/36
..............
100,000
132,338
Massachusetts
Housing
Finance
Agency
,
Revenue
,
2019
C-1
,
2.65
%
,
12/01/34
.....
100,000
105,049
237,387
Minnesota
2.0%
City
of
Minneapolis
,
GO
,
2019
,
3
%
,
12/01/40
...............................
100,000
106,122
New
York
14.7%
Battery
Park
City
Authority
,
Revenue,
Senior
Lien
,
2019A
,
5
%
,
11/01/49
..........
100,000
128,553
Metropolitan
Transportation
Authority
,
Revenue,
2017C-1,
Refunding,
3.375%,
11/15/37
..........................
105,000
100,374
Dedicated
Tax
Fund,
Revenue,
2017B-2,
4%,
11/15/32
......................
160,000
181,243
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Municipal
Green
Bond
Fund
(continued)
franklintempleton.com
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accompanying
notes
are
an
integral
part
of
these
financial
statements.
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117
s
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
New
York
(continued)
New
York
State
Dormitory
Authority
,
Cornell
University
,
Revenue
,
2019
D
,
5
%
,
7/01/35
$
100,000
$
149,464
New
York
State
Housing
Finance
Agency
,
Revenue,
2019
N,
FNMA
Insured,
2.6%,
11/01/34
.........................
100,000
104,763
Revenue,
2019
P,
2%,
5/01/28
........................................
100,000
105,612
770,009
Ohio
5.5%
American
Municipal
Power,
Inc.
,
Revenue
,
2020A
,
Refunding
,
5
%
,
2/15/29
........
100,000
132,032
State
of
Ohio
,
GO,
2019A,
4%,
3/01/29
............................................
25,000
31,569
GO,
2019A,
4%,
3/01/30
............................................
100,000
127,725
291,326
Pennsylvania
2.5%
School
District
of
Philadelphia
(The)
,
GO
,
2019
B
,
5
%
,
9/01/29
.................
100,000
130,952
Rhode
Island
3.1%
Rhode
Island
Housing
and
Mortgage
Finance
Corp.
,
Revenue
,
2019
1-B
,
FHA
Insured
,
2.75
%
,
10/01/34
...................................................
150,000
160,376
Utah
2.4%
City
of
Spanish
Fork
City
,
Sewer
,
Revenue
,
2020
,
BAM
Insured
,
5
%
,
9/01/26
.......
100,000
126,729
Vermont
4.3%
Vermont
Educational
&
Health
Buildings
Financing
Agency
,
University
of
Vermont
Health
Network
Obligated
Group
,
Revenue
,
2016
B
,
5
%
,
12/01/38
.............
195,000
226,623
Washington
5.1%
Central
Puget
Sound
Regional
Transit
Authority
,
Revenue
,
2015S-1
,
Refunding
,
5
%
,
11/01/32
........................................................
100,000
121,120
FYI
Properties
,
State
of
Washington
Consolidated
Technology
Services
,
Revenue
,
2019
,
Refunding
,
5
%
,
6/01/21
........................................
140,000
144,918
266,038
Wisconsin
2.1%
Milwaukee
Metropolitan
Sewerage
District
,
GO
,
2020
A
,
3
%
,
10/01/35
............
100,000
110,083
U.S.
Territories
3.7%
District
of
Columbia
3.7%
District
of
Columbia
,
Water
&
Sewer
Authority
,
Revenue,
Sub.
Lien
,
2019
A
,
5
%
,
10/01/44
.....................................................
150,000
193,941
Total
Municipal
Bonds
(Cost
$4,929,085)
.......................................
5,097,634
Total
Long
Term
Investments
(Cost
$5,028,053)
.................................
5,199,784
a
a
a
a
a
a
Total
Investments
(Cost
$5,028,053)
99.1%
.....................................
$5,199,784
Other
Assets,
less
Liabilities
0.9%
.............................................
49,017
Net
Assets
100.0%
...........................................................
$5,248,801
See
Abbreviations
on
page
153
.
a
Security
purchased
on
a
when-issued
basis.
See
Note
1(b).
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
New
Jersey
Tax-Free
Income
Fund
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part
of
these
financial
statements.
118
0
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
Year
Ended
February
28,
2019
b
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
..........................................
$11.77
$11.14
$11.10
Income
from
investment
operations
c
:
Net
investment
income
d
..................................................
0.15
0.30
0.17
Net
realized
and
unrealized
gains
(losses)
....................................
(0.38)
0.65
0.04
Total
from
investment
operations
.............................................
(0.23)
0.95
0.21
Less
distributions
from:
Net
investment
income
...................................................
(0.15)
(0.32)
(0.17)
Net
asset
value,
end
of
period
...............................................
$11.39
$11.77
$11.14
Total
return
e
............................................................
(1.97)%
8.61%
1.97%
Ratios
to
average
net
assets
f
Expenses
g
.............................................................
0.83%
0.82%
0.83%
Net
investment
income
....................................................
2.59%
2.67%
3.28%
Supplemental
data
Net
assets,
end
of
period
(000’s)
.............................................
$114,039
$109,130
$55,866
Portfolio
turnover
rate
.....................................................
7.94%
17.99%
13.26%
a
For
the
year
ended
February
29.
b
For
the
period
September
10,
2018
(effective
date)
to
February
28,
2019.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
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New
Jersey
Tax-Free
Income
Fund
(continued)
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part
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financial
statements.
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119
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
2019
2018
2017
2016
a
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$11.76
$11.13
$11.11
$11.45
$11.73
$11.95
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.16
0.32
0.38
0.39
0.44
0.46
Net
realized
and
unrealized
gains
(losses)
(0.40)
0.64
0.03
(0.31)
(0.27)
(0.23)
Total
from
investment
operations
........
(0.24)
0.96
0.41
0.08
0.17
0.23
Less
distributions
from:
Net
investment
income
..............
(0.15)
(0.33)
(0.39)
(0.42)
(0.45)
(0.45)
Net
asset
value,
end
of
period
..........
$11.37
$11.76
$11.13
$11.11
$11.45
$11.73
Total
return
d
.......................
(1.98)%
8.78%
3.78%
0.68%
1.44%
1.99%
Ratios
to
average
net
assets
e
Expenses
.........................
0.68%
f
0.67%
f
0.68%
f
0.67%
0.65%
0.64%
Net
investment
income
...............
2.75%
2.82%
3.43%
3.46%
3.79%
3.96%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$534,628
$584,519
$596,817
$650,527
$742,824
$793,062
Portfolio
turnover
rate
................
7.94%
17.99%
13.26%
12.70%
9.20%
5.24%
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,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
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New
Jersey
Tax-Free
Income
Fund
(continued)
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of
these
financial
statements.
120
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
2019
2018
2017
2016
a
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$11.92
$11.28
$11.26
$11.60
$11.87
$12.09
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.13
0.26
0.32
0.33
0.38
0.40
Net
realized
and
unrealized
gains
(losses)
(0.40)
0.65
0.03
(0.32)
(0.27)
(0.24)
Total
from
investment
operations
........
(0.27)
0.91
0.35
0.01
0.11
0.16
Less
distributions
from:
Net
investment
income
..............
(0.12)
(0.27)
(0.33)
(0.35)
(0.38)
(0.38)
Net
asset
value,
end
of
period
..........
$11.53
$11.92
$11.28
$11.26
$11.60
$11.87
Total
return
d
.......................
(2.22)%
8.19%
3.15%
0.11%
0.95%
1.42%
Ratios
to
average
net
assets
e
Expenses
.........................
1.22%
f
1.22%
f
1.23%
f
1.22%
1.20%
1.19%
Net
investment
income
...............
2.18%
2.27%
2.88%
2.91%
3.24%
3.41%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$97,570
$117,600
$125,982
$188,806
$217,952
$216,813
Portfolio
turnover
rate
................
7.94%
17.99%
13.26%
12.70%
9.20%
5.24%
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,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
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New
Jersey
Tax-Free
Income
Fund
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part
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statements.
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121
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
Year
Ended
February
28,
2018
b
2020
a
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
..............................
$11.77
$11.14
$11.12
$11.37
Income
from
investment
operations
c
:
Net
investment
income
d
......................................
0.16
0.34
0.40
0.25
Net
realized
and
unrealized
gains
(losses)
........................
(0.39)
0.64
0.03
(0.26)
Total
from
investment
operations
.................................
(0.23)
0.98
0.43
(0.01)
Less
distributions
from:
Net
investment
income
.......................................
(0.16)
(0.35)
(0.41)
(0.24)
Net
asset
value,
end
of
period
...................................
$11.38
$11.77
$11.14
$11.12
Total
return
e
................................................
(1.91)%
8.92%
3.91%
(0.11)%
Ratios
to
average
net
assets
f
Expenses
before
waiver
and
payments
by
affiliates
...................
0.53%
0.53%
0.54%
0.54%
Expenses
net
of
waiver
and
payments
by
affiliates
....................
0.53%
g
0.53%
g,h
0.54%
g,h
0.53%
Net
investment
income
........................................
2.89%
2.96%
3.57%
3.60%
Supplemental
data
Net
assets,
end
of
period
(000’s)
.................................
$29,368
$33,376
$20,459
$19,936
Portfolio
turnover
rate
.........................................
7.94%
17.99%
13.26%
12.70%
h
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
a
For
the
year
ended
February
29.
b
For
the
period
August
1,
2017
(effective
date)
to
February
28,
2018.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
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New
Jersey
Tax-Free
Income
Fund
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part
of
these
financial
statements.
122
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
2019
2018
2017
2016
a
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$11.77
$11.14
$11.12
$11.46
$11.74
$11.96
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.16
0.33
0.39
0.40
0.46
0.47
Net
realized
and
unrealized
gains
(losses)
(0.39)
0.64
0.03
(0.31)
(0.28)
(0.23)
Total
from
investment
operations
........
(0.23)
0.97
0.42
0.09
0.18
0.24
Less
distributions
from:
Net
investment
income
..............
(0.16)
(0.34)
(0.40)
(0.43)
(0.46)
(0.46)
Net
asset
value,
end
of
period
..........
$11.38
$11.77
$11.14
$11.12
$11.46
$11.74
Total
return
d
.......................
(1.93)%
8.88%
3.87%
0.77%
1.54%
2.10%
Ratios
to
average
net
assets
e
Expenses
.........................
0.58%
f
0.57%
f
0.58%
f
0.57%
0.55%
0.54%
Net
investment
income
...............
2.84%
2.92%
3.53%
3.56%
3.89%
4.06%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$90,272
$81,747
$75,607
$79,286
$107,087
$91,175
Portfolio
turnover
rate
................
7.94%
17.99%
13.26%
12.70%
9.20%
5.24%
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
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited),
August
31,
2020
Franklin
New
Jersey
Tax-Free
Income
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
123
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
100.2%
Delaware
2.5%
Delaware
River
&
Bay
Authority
,
Revenue,
2012
A,
Refunding,
5%,
1/01/42
...............................
$
6,000,000
$
6,418,680
Revenue,
2019,
Refunding,
4%,
1/01/44
.................................
13,500,000
15,219,360
21,638,040
New
Jersey
82.4%
Bergen
County
Improvement
Authority
(The)
,
County
of
Bergen,
Revenue,
2019,
4%,
10/15/37
..........................
3,600,000
4,292,352
County
of
Bergen,
Revenue,
2019,
4%,
10/15/38
..........................
3,745,000
4,447,599
County
of
Bergen,
Revenue,
2019,
4%,
10/15/39
..........................
3,000,000
3,552,300
Cape
May
County
Industrial
Pollution
Control
Financing
Authority
,
Atlantic
City
Electric
Co.
,
Revenue
,
1991
A
,
Refunding
,
NATL
Insured
,
6.8
%
,
3/01/21
...............
5,400,000
5,560,758
County
of
Hudson
,
Hudson
County
Improvement
Authority
,
Revenue
,
2016
,
5
%
,
5/01/46
.........................................................
6,000,000
7,146,660
County
of
Mercer
,
GO
,
2020
,
3
%
,
2/15/29
.................................
2,310,000
2,577,660
County
of
Middlesex
,
COP
,
1998
,
NATL
Insured
,
Zero
Cpn
.,
6/15/24
.............
1,000,000
973,960
Cumberland
County
Improvement
Authority
(The)
,
Revenue,
2014,
Pre-Refunded,
AGMC
Insured,
5%,
9/01/39
.................
2,000,000
2,372,340
County
of
Cumberland,
Revenue,
2019,
BAM
Insured,
5%,
1/15/36
............
955,000
1,187,485
County
of
Cumberland,
Revenue,
2019,
BAM
Insured,
5%,
1/15/37
............
1,000,000
1,239,350
County
of
Cumberland,
Revenue,
2019,
BAM
Insured,
5%,
1/15/38
............
1,020,000
1,260,700
County
of
Cumberland,
Revenue,
2019,
BAM
Insured,
5%,
1/15/39
............
1,070,000
1,319,149
County
of
Cumberland,
Revenue,
2019,
BAM
Insured,
5%,
1/15/44
............
5,725,000
6,978,890
Gloucester
County
Improvement
Authority
(The)
,
Rowan
University
Foundation,
Inc.,
Revenue,
2015C,
AGMC
Insured,
4%,
7/01/42
.
2,500,000
2,709,425
Rowan
University
Foundation,
Inc.,
Revenue,
2015C,
5%,
7/01/44
.............
3,500,000
3,923,570
Rowan
University
Foundation,
Inc.,
Revenue,
2019,
4%,
7/01/37
..............
750,000
879,427
Rowan
University
Foundation,
Inc.,
Revenue,
2019,
4%,
7/01/38
..............
700,000
818,223
Rowan
University
Foundation,
Inc.,
Revenue,
2019,
4%,
7/01/39
..............
600,000
699,282
Rowan
University
Foundation,
Inc.,
Revenue,
2019,
5%,
7/01/44
..............
4,925,000
6,126,552
Rowan
University
Foundation,
Inc.,
Revenue,
2019,
4%,
7/01/48
..............
5,250,000
6,023,483
Hudson
County
Improvement
Authority
,
Revenue
,
2019
,
Refunding
,
4
%
,
1/01/40
....
1,000,000
1,167,860
Mercer
County
Improvement
Authority
(The)
,
County
of
Mercer,
Revenue,
2019,
Refunding,
4%,
4/01/31
...................
1,545,000
1,913,482
County
of
Mercer,
Revenue,
2019,
Refunding,
4%,
4/01/32
...................
2,050,000
2,520,168
County
of
Mercer,
Revenue,
2019,
Refunding,
4%,
4/01/33
...................
1,500,000
1,831,515
Monmouth
County
Improvement
Authority
(The)
,
Revenue,
2019
B,
4%,
12/01/34
.......................................
750,000
917,610
Revenue,
2019
B,
4%,
12/01/36
.......................................
750,000
908,093
Revenue,
2019
B,
4%,
12/01/37
.......................................
500,000
603,325
Revenue,
2019
B,
4%,
12/01/38
.......................................
750,000
902,100
Revenue,
2019
B,
4%,
12/01/39
.......................................
600,000
719,538
Revenue,
2019A,
4%,
8/01/32
........................................
300,000
368,715
Revenue,
2019A,
4%,
8/01/33
........................................
350,000
427,434
Revenue,
2019A,
4%,
8/01/34
........................................
525,000
639,229
Revenue,
2019A,
4%,
8/01/35
........................................
525,000
635,969
Revenue,
2019A,
4%,
8/01/36
........................................
500,000
602,580
Revenue,
2019A,
4%,
8/01/37
........................................
275,000
330,275
Revenue,
2019A,
4%,
8/01/38
........................................
225,000
269,372
Revenue,
2019A,
4%,
8/01/39
........................................
400,000
477,472
New
Brunswick
Parking
Authority
,
Revenue
,
2016A
,
Refunding
,
BAM
Insured
,
5
%
,
9/01/39
.........................................................
5,000,000
5,836,300
New
Jersey
Economic
Development
Authority
,
Lutheran
Social
Ministries
at
Crane's
Mill,
Inc.,
Revenue,
2018,
Refunding,
5%,
1/01/34
........................................................
1,500,000
1,551,540
Lutheran
Social
Ministries
at
Crane's
Mill,
Inc.,
Revenue,
2018,
Refunding,
5%,
1/01/39
........................................................
1,250,000
1,274,663
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
New
Jersey
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Semiannual
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)
New
Jersey
(continued)
New
Jersey
Economic
Development
Authority,
(continued)
Lutheran
Social
Ministries
at
Crane's
Mill,
Inc.,
Revenue,
2018,
Refunding,
5%,
1/01/49
........................................................
$
3,000,000
$
3,001,830
Middlesex
Water
Co.,
Revenue,
2019,
4%,
8/01/59
........................
6,200,000
6,938,792
Middlesex
Water
Co.,
Revenue,
2019,
5%,
8/01/59
........................
3,750,000
4,592,137
Provident
Group-Kean
Properties
LLC,
Revenue,
2017
A,
5%,
7/01/32
..........
640,000
624,883
Provident
Group-Kean
Properties
LLC,
Revenue,
2017
A,
5%,
7/01/37
..........
600,000
567,042
Provident
Group-Kean
Properties
LLC,
Revenue,
2017
A,
5%,
7/01/47
..........
1,500,000
1,339,470
Provident
Group-Montclair
Properties
LLC,
Revenue,
2017,
Refunding,
AGMC
Insured,
5%,
6/01/42
..............................................
6,000,000
6,957,660
Provident
Group-Rowan
Properties
LLC,
Revenue,
A,
5%,
1/01/48
.............
7,000,000
6,369,790
Rutgers
The
State
University
of
New
Jersey,
Revenue,
2013,
Pre-Refunded,
5%,
6/15/38
........................................................
5,000,000
5,657,500
Rutgers
The
State
University
of
New
Jersey,
Revenue,
2013,
Pre-Refunded,
5%,
6/15/46
........................................................
7,500,000
8,486,250
State
of
New
Jersey
Cigarette
Tax,
Revenue,
2012,
Refunding,
AGMC
Insured,
5%,
6/15/22
........................................................
10,000,000
10,458,800
State
of
New
Jersey
Cigarette
Tax,
Revenue,
2012,
Refunding,
5%,
6/15/28
......
3,000,000
3,077,970
State
of
New
Jersey
Cigarette
Tax,
Revenue,
2012,
Refunding,
5%,
6/15/29
......
1,000,000
1,023,610
State
of
New
Jersey
Department
of
the
Treasury,
Revenue,
2005
K,
Refunding,
NATL
Insured,
5.25%,
12/15/21
..........................................
10,000,000
10,557,500
State
of
New
Jersey
Department
of
the
Treasury,
Revenue,
2005
N1,
Refunding,
NATL
Insured,
5.5%,
9/01/27
........................................
8,660,000
10,652,060
State
of
New
Jersey
Department
of
the
Treasury,
Revenue,
2015
WW,
5%,
6/15/37
4,760,000
5,245,044
New
Jersey
Educational
Facilities
Authority
,
Kean
University,
Revenue,
2015H,
Refunding,
AGMC
Insured,
5%,
7/01/34
......
2,205,000
2,517,647
Kean
University,
Revenue,
2015H,
Refunding,
AGMC
Insured,
5%,
7/01/35
......
5,000,000
5,695,350
Kean
University,
Revenue,
2017D,
Refunding,
BAM
Insured,
4%,
9/01/38
........
1,150,000
1,274,211
Montclair
State
University,
Inc.,
Revenue,
2014
A,
5%,
7/01/39
................
5,000,000
5,530,700
Montclair
State
University,
Inc.,
Revenue,
2014
A,
5%,
7/01/44
................
16,380,000
18,007,844
Montclair
State
University,
Inc.,
Revenue,
2015D,
Refunding,
5%,
7/01/35
.......
2,245,000
2,556,112
Montclair
State
University,
Inc.,
Revenue,
2015D,
Refunding,
5%,
7/01/36
.......
1,210,000
1,374,270
Montclair
State
University,
Inc.,
Revenue,
2016B,
Refunding,
5%,
7/01/34
.......
1,325,000
1,548,859
Ramapo
College
of
New
Jersey,
Revenue,
2012
B,
Refunding,
5%,
7/01/37
......
1,000,000
1,052,140
Ramapo
College
of
New
Jersey,
Revenue,
2012
B,
Refunding,
5%,
7/01/42
......
1,000,000
1,048,580
Ramapo
College
of
New
Jersey,
Revenue,
2017
A,
Refunding,
AGMC
Insured,
5%,
7/01/35
........................................................
3,955,000
4,791,166
Seton
Hall
University,
Revenue,
2015C,
Refunding,
5%,
7/01/34
...............
400,000
436,792
Seton
Hall
University,
Revenue,
2015C,
Refunding,
5%,
7/01/37
...............
1,300,000
1,410,539
Seton
Hall
University,
Revenue,
2017D,
Refunding,
5%,
7/01/42
...............
3,945,000
4,356,069
Seton
Hall
University,
Revenue,
2020
C,
AGMC
Insured,
3.25%,
7/01/49
........
1,150,000
1,189,433
Seton
Hall
University,
Revenue,
2020
C,
AGMC
Insured,
4%,
7/01/50
...........
1,850,000
2,082,120
Stevens
Institute
of
Technology,
Revenue,
1998
1,
ETM,
5%,
7/01/28
...........
600,000
713,682
Stevens
Institute
of
Technology,
Revenue,
2017
A,
Refunding,
5%,
7/01/36
......
1,600,000
1,877,712
Stevens
Institute
of
Technology,
Revenue,
2017
A,
Refunding,
5%,
7/01/42
......
9,310,000
10,760,498
Stevens
Institute
of
Technology,
Revenue,
2017
A,
Refunding,
5%,
7/01/47
......
4,085,000
4,695,422
Stevens
Institute
of
Technology,
Revenue,
2020
A,
5%,
7/01/45
...............
4,000,000
4,798,480
Stevens
Institute
of
Technology,
Revenue,
2020
A,
4%,
7/01/50
...............
11,640,000
12,635,918
Trustees
of
Princeton
University
(The),
Revenue,
2011B,
5%,
7/01/39
...........
15,000,000
15,545,850
Trustees
of
Princeton
University
(The),
Revenue,
2011B,
4.375%,
7/01/41
.......
10,000,000
10,243,800
Trustees
of
Princeton
University
(The),
Revenue,
2014
A,
5%,
7/01/44
..........
15,000,000
17,112,150
Trustees
of
Princeton
University
(The),
Revenue,
2017
I,
Refunding,
5%,
7/01/35
..
5,800,000
7,355,502
New
Jersey
Health
Care
Facilities
Financing
Authority
,
AHS
Hospital
Corp.,
Revenue,
2008A,
5%,
7/01/27
........................
220,000
220,697
AHS
Hospital
Corp.,
Revenue,
2016,
Refunding,
4%,
7/01/41
.................
10,000,000
11,070,800
AHS
Hospital
Corp.,
Revenue,
A,
Pre-Refunded,
6%,
7/01/41
.................
10,600,000
11,102,546
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
New
Jersey
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
125
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
New
Jersey
(continued)
New
Jersey
Health
Care
Facilities
Financing
Authority,
(continued)
Hackensack
Meridian
Health
Obligated
Group,
Revenue,
2011,
Refunding,
5%,
7/01/27
........................................................
$
2,500,000
$
2,693,900
Hackensack
Meridian
Health
Obligated
Group,
Revenue,
2017A,
Refunding,
5%,
7/01/37
........................................................
3,000,000
3,620,670
Hackensack
Meridian
Health
Obligated
Group,
Revenue,
2017A,
Refunding,
5%,
7/01/38
........................................................
3,000,000
3,611,760
Hackensack
Meridian
Health
Obligated
Group,
Revenue,
2017A,
Refunding,
5%,
7/01/39
........................................................
5,000,000
6,005,850
Hunterdon
Medical
Center,
Revenue,
2014A,
Refunding,
5%,
7/01/45
...........
2,650,000
2,883,730
Inspira
Health
Obligated
Group,
Revenue,
2016A,
Refunding,
5%,
7/01/46
.......
18,500,000
21,193,230
Inspira
Health
Obligated
Group,
Revenue,
2017A,
5%,
7/01/37
................
1,600,000
1,902,688
Inspira
Health
Obligated
Group,
Revenue,
2017A,
5%,
7/01/42
................
8,000,000
9,405,600
Inspira
Health
Obligated
Group,
Revenue,
2017A,
4%,
7/01/47
................
8,700,000
9,527,196
RWJ
Barnabas
Health
Obligated
Group,
Revenue,
2011A,
Pre-Refunded,
5.625%,
7/01/32
........................................................
5,500,000
5,744,640
RWJ
Barnabas
Health
Obligated
Group,
Revenue,
2013A,
5.5%,
7/01/43
........
4,000,000
4,375,760
RWJ
Barnabas
Health
Obligated
Group,
Revenue,
2014A,
5%,
7/01/43
.........
3,650,000
4,042,485
RWJ
Barnabas
Health
Obligated
Group,
Revenue,
2014A,
Refunding,
5%,
7/01/44
15,530,000
17,181,616
RWJ
Barnabas
Health
Obligated
Group,
Revenue,
2016
A,
Refunding,
5%,
7/01/43
15,000,000
17,334,900
St.
Luke's
Hospital
Obligated
Group,
Revenue,
2013,
Refunding,
5%,
8/15/31
....
2,935,000
3,202,848
St.
Luke's
Hospital
Obligated
Group,
Revenue,
2013,
Refunding,
5%,
8/15/34
....
1,500,000
1,627,620
St.
Peter's
University
Hospital
Obligated
Group,
Revenue,
2011,
Refunding,
6%,
7/01/26
........................................................
1,000,000
1,032,310
St.
Peter's
University
Hospital
Obligated
Group,
Revenue,
2011,
Refunding,
6.25%,
7/01/35
........................................................
3,400,000
3,510,942
Valley
Health
System
Obligated
Group,
Revenue,
2019,
4%,
7/01/35
...........
1,000,000
1,155,250
Valley
Health
System
Obligated
Group,
Revenue,
2019,
4%,
7/01/36
...........
1,750,000
2,012,972
Valley
Health
System
Obligated
Group,
Revenue,
2019,
4%,
7/01/38
...........
2,000,000
2,285,360
Valley
Health
System
Obligated
Group,
Revenue,
2019,
4%,
7/01/39
...........
2,200,000
2,506,570
Valley
Health
System
Obligated
Group,
Revenue,
2019,
4%,
7/01/44
...........
11,000,000
12,369,170
New
Jersey
Higher
Education
Student
Assistance
Authority
,
Revenue,
2010-2,
5%,
12/01/30
.......................................
1,500,000
1,513,635
Revenue,
2010-2,
5%,
12/01/36
.......................................
1,000,000
1,008,540
Revenue,
2011-1,
5.875%,
12/01/33
....................................
2,140,000
2,245,074
Revenue,
2019
B,
Refunding,
3.25%,
12/01/39
............................
10,000,000
9,899,500
Revenue,
2020
C,
Refunding,
4.25%,
12/01/50
...........................
1,750,000
1,775,130
Revenue,
Senior
Lien,
2020
A,
Refunding,
3.5%,
12/01/39
...................
7,000,000
7,067,760
New
Jersey
Housing
&
Mortgage
Finance
Agency
,
Revenue,
2018
A,
Refunding,
3.95%,
11/01/43
............................
1,100,000
1,214,994
Revenue,
2019
A,
Refunding,
3%,
11/01/44
..............................
510,000
533,185
Revenue,
2019
C,
Refunding,
3.95%,
10/01/44
...........................
4,300,000
4,625,811
Revenue,
2020
E,
Refunding,
2.05%,
10/01/35
............................
5,000,000
4,979,500
Revenue,
2020
E,
Refunding,
2.25%,
10/01/40
............................
10,000,000
9,925,200
Revenue,
2020
E,
Refunding,
2.4%,
10/01/45
.............................
4,000,000
3,961,600
Revenue,
2020
E,
Refunding,
2.45%,
10/01/50
............................
3,000,000
2,955,180
New
Jersey
Infrastructure
Bank
,
Revenue
,
2015A-R1
,
Refunding
,
5
%
,
9/01/21
.....
8,915,000
9,346,575
New
Jersey
Institute
of
Technology
,
Revenue,
Pre-Refunded,
5%,
7/01/42
..................................
7,000,000
7,607,506
Revenue,
2015A,
5%,
7/01/45
........................................
6,000,000
6,740,400
New
Jersey
Transportation
Trust
Fund
Authority
,
Revenue,
2006C,
AGMC
Insured,
Zero
Cpn
.,
12/15/33
......................
10,000,000
6,836,700
Revenue,
2009A,
Zero
Cpn
.,
12/15/32
..................................
10,000,000
6,826,100
Revenue,
2010A,
Zero
Cpn
.,
12/15/29
..................................
5,000,000
3,864,700
Revenue,
2011A,
Pre-Refunded,
5.5%,
6/15/41
...........................
5,000,000
5,210,050
Revenue,
2013AA,
5.25%,
6/15/31
.....................................
10,000,000
10,848,800
Revenue,
2019
BB,
4%,
6/15/44
.......................................
6,000,000
6,352,380
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
New
Jersey
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Semiannual
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)
New
Jersey
(continued)
New
Jersey
Turnpike
Authority
,
Revenue,
2017
A,
5%,
1/01/34
........................................
$
6,505,000
$
7,768,922
Revenue,
2017
A,
5%,
1/01/35
........................................
3,495,000
4,164,013
Revenue,
2017B,
Refunding,
5%,
1/01/40
...............................
15,245,000
18,303,604
Revenue,
2017G,
Refunding,
4%,
1/01/43
...............................
5,000,000
5,584,750
Revenue,
2019
A,
5%,
1/01/48
........................................
15,500,000
18,677,810
Newark
Housing
Authority
Scholarship
Foundation
A
New
Jersey
Non
Profit
Corp.
(The)
,
Port
Authority
of
New
York
&
New
Jersey
,
Revenue
,
2017
,
Refunding
,
4
%
,
1/01/37
.........................................................
20,745,000
22,963,885
North
Hudson
Sewerage
Authority
,
COP,
Senior
Lien,
Pre-Refunded,
5%,
6/01/42
............................
17,800,000
19,295,912
Rutgers
The
State
University
of
New
Jersey
,
Revenue
,
2013
L
,
Pre-Refunded
,
5
%
,
5/01/43
......................................................
12,000,000
13,529,520
a
Somerset
County
Improvement
Authority
,
Revenue
,
2020
,
4
%
,
9/01/50
...........
10,115,000
11,996,188
713,391,623
New
York
6.8%
Port
Authority
of
New
York
&
New
Jersey
,
Revenue,
166,
5.25%,
7/15/36
........................................
5,000,000
5,070,750
Revenue,
179,
5%,
12/01/38
.........................................
15,000,000
16,763,100
Revenue,
2014,
4%,
9/01/43
.........................................
3,000,000
3,347,700
Revenue,
2017,
4%,
11/01/49
........................................
9,000,000
10,327,680
Revenue,
TWO
HUNDRED
SIXTEENTH,
4%,
9/01/45
......................
5,000,000
5,757,500
Revenue,
First
Series,
171ST,
5%,
7/15/30
...............................
12,200,000
12,871,488
JFK
International
Air
Terminal
LLC,
Revenue,
NATL
Insured,
5.75%,
12/01/22
....
5,065,000
5,133,023
59,271,241
Pennsylvania
7.4%
Delaware
River
Joint
Toll
Bridge
Commission
,
Revenue,
2017,
5%,
7/01/42
.........................................
19,500,000
23,753,925
Revenue,
2019
A,
5%,
7/01/33
........................................
100,000
130,961
Revenue,
2019
A,
5%,
7/01/34
........................................
150,000
195,829
Revenue,
2019
A,
5%,
7/01/35
........................................
150,000
195,034
Revenue,
2019
A,
5%,
7/01/36
........................................
150,000
194,210
Revenue,
2019
A,
5%,
7/01/37
........................................
150,000
193,545
Revenue,
2019
A,
5%,
7/01/38
........................................
150,000
192,951
Revenue,
2019
A,
5%,
7/01/39
........................................
150,000
192,398
Revenue,
2019
A,
5%,
7/01/44
........................................
760,000
962,304
Revenue,
2019B,
Refunding,
5%,
7/01/31
...............................
850,000
1,127,245
Revenue,
2019B,
Refunding,
5%,
7/01/32
...............................
1,000,000
1,316,940
Delaware
River
Port
Authority
,
Revenue,
2013,
5%,
1/01/37
.........................................
10,000,000
11,100,300
Revenue,
2018
A,
5%,
1/01/37
........................................
3,285,000
4,026,786
Revenue,
2018
A,
5%,
1/01/38
........................................
5,050,000
6,150,142
Revenue,
2018
A,
5%,
1/01/39
........................................
2,300,000
2,793,212
Revenue,
2018
A,
5%,
1/01/40
........................................
9,565,000
11,585,798
64,111,580
U.S.
Territories
1.1%
Puerto
Rico
1.1%
b
Puerto
Rico
Electric
Power
Authority
,
Revenue
,
WW-RSA-1
,
5.5
%
,
7/01/38
........
13,455,000
9,334,406
Total
Municipal
Bonds
(Cost
$821,943,768)
.....................................
867,746,890
a
a
a
a
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
New
Jersey
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
127
L
Short
Term
Investments
0.3%
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
0.3%
New
Jersey
0.3%
c
New
Jersey
Economic
Development
Authority
,
Lawrenceville
School
(The)
,
Revenue
,
2001
,
SPA
JPMorgan
Chase
Bank
NA
,
Daily
VRDN
and
Put
,
0.01
%
,
7/01/31
.....
$
1,700,000
$
1,700,000
c
New
Jersey
Health
Care
Facilities
Financing
Authority
,
Virtua
Health
Obligated
Group
,
Revenue
,
2009C
,
LOC
JPMorgan
Chase
Bank
NA
,
Daily
VRDN
and
Put
,
0.01
%
,
7/01/43
.........................................................
1,000,000
1,000,000
2,700,000
Total
Municipal
Bonds
(Cost
$2,700,000)
.......................................
2,700,000
Total
Short
Term
Investments
(Cost
$2,700,000
)
.................................
2,700,000
a
Total
Investments
(Cost
$824,643,768)
100.5%
..................................
$870,446,890
Other
Assets,
less
Liabilities
(0.5)%
...........................................
(4,569,479)
Net
Assets
100.0%
...........................................................
$865,877,411
See
Abbreviations
on
page
153
.
a
Security
purchased
on
a
when-issued
basis.
See
Note
1(b).
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
August
31,
2020
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
128
Franklin
Federal
Intermediate-
Term
Tax-Free
Income
Fund
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
Franklin
High
Yield
Tax-Free
Income
Fund
Assets:
Investments
in
securities:
Cost
-
Unaffiliated
issuers
.................................
$3,383,904,092
$1,150,805,738
$5,615,462,458
Cost
-
Controlled
affiliates
(Note
3
f
)
..........................
—
27,583,187
14,018,125
Cost
-
Non-controlled
affiliates
(Note
3
f
)
......................
9,941,688
—
—
Value
-
Unaffiliated
issuers
................................
$3,610,326,284
$1,186,806,499
$6,305,169,821
Value
-
Controlled
affiliates
(Note
3
f
)
.........................
—
28,637,850
14,063,500
Value
-
Non-controlled
affiliates
(Note
3
f
)
......................
9,814,850
—
—
Cash
..................................................
142,712,314
11,420
18,282,263
Receivables:
Investment
securities
sold
.................................
23,339,886
—
50,822,775
Capital
shares
sold
......................................
5,429,922
7,063,472
5,575,039
Dividends
and
interest
...................................
35,976,039
8,059,084
64,412,612
Due
from
custodian
......................................
—
2,621,450
2,890,707
Other
assets
............................................
2,138
581
3,861
Total
assets
........................................
3,827,601,433
1,233,200,356
6,461,220,578
Liabilities:
Payables:
Investment
securities
purchased
............................
31,181,632
22,015,692
47,578,359
Capital
shares
redeemed
.................................
161,027,494
1,221,323
12,620,381
Management
fees
.......................................
1,258,598
323,025
2,578,577
Distribution
fees
........................................
316,366
107,421
750,790
Transfer
agent
fees
......................................
577,860
144,136
1,078,651
Distributions
to
shareholders
...............................
1,119,704
400,553
2,585,105
Accrued
expenses
and
other
liabilities
.........................
199,802
73,895
510,566
Total
liabilities
.......................................
195,681,456
24,286,045
67,702,429
Net
assets,
at
value
...............................
$3,631,919,977
$1,208,914,311
$6,393,518,149
Net
assets
consist
of:
Paid-in
capital
...........................................
$3,485,856,481
$1,178,451,724
$6,621,843,044
Total
distributable
earnings
(losses)
...........................
146,063,496
30,462,587
(228,324,895)
Net
assets,
at
value
...............................
$3,631,919,977
$1,208,914,311
$6,393,518,149
Franklin
Tax-Free
Trust
Financial
Statements
Statements
of
Assets
and
Liabilities
(continued)
August
31,
2020
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
129
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
.....................................
$548,653,790
$212,320,708
$987,661,923
Shares
outstanding
......................................
44,547,817
20,003,556
97,835,923
Net
asset
value
per
share
a
................................
$12.32
$10.61
$10.10
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
97.75%,
97.75%
and
96.25%,
respectively)
..........................
$12.60
$10.85
$10.49
Class
A1:
Net
assets,
at
value
.....................................
$1,442,544,521
$490,913,122
$3,792,731,245
Shares
outstanding
......................................
117,283,279
46,207,014
376,002,369
Net
asset
value
per
share
a
................................
$12.30
$10.62
$10.09
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
97.75%,
97.75%
and
96.25%,
respectively)
..........................
$12.58
$10.86
$10.48
Class
C:
Net
assets,
at
value
.....................................
$139,379,520
$—
$390,978,267
Shares
outstanding
......................................
11,297,334
—
37,984,720
Net
asset
value
and
maximum
offering
price
per
share
a
...........
$12.34
$—
$10.29
Class
R6:
Net
assets,
at
value
.....................................
$376,356,671
$58,015,747
$130,340,354
Shares
outstanding
......................................
30,516,330
5,465,471
12,857,351
Net
asset
value
and
maximum
offering
price
per
share
...........
$12.33
$10.61
$10.14
Advisor
Class:
Net
assets,
at
value
.....................................
$1,124,985,475
$447,664,734
$1,091,806,360
Shares
outstanding
......................................
91,234,661
42,156,320
107,739,607
Net
asset
value
and
maximum
offering
price
per
share
...........
$12.33
$10.62
$10.13
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)
August
31,
2020
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
130
Franklin
Massachusetts
Tax-Free
Income
Fund
Franklin
Municipal
Green
Bond
Fund
Franklin
New
Jersey
Tax-Free
Income
Fund
Assets:
Investments
in
securities:
Cost
-
Unaffiliated
issuers
.................................
$414,399,801
$5,028,053
$824,643,768
Value
-
Unaffiliated
issuers
................................
$447,580,375
$5,199,784
$870,446,890
Cash
..................................................
546,486
86,679
622,120
Receivables:
Investment
securities
sold
.................................
—
—
1,748,863
Capital
shares
sold
......................................
5,470,937
—
175,917
Interest
...............................................
4,218,243
46,538
7,203,225
Offering
costs
...........................................
—
99,696
—
Other
assets
............................................
257
44,331
522
Total
assets
........................................
457,816,298
5,477,028
880,197,537
Liabilities:
Payables:
Investment
securities
purchased
............................
—
114,364
12,036,749
Capital
shares
redeemed
.................................
1,184,346
1
1,321,712
Management
fees
.......................................
202,542
358
369,686
Distribution
fees
........................................
49,020
—
124,609
Transfer
agent
fees
......................................
53,264
87
115,372
Distributions
to
shareholders
...............................
148,994
6,616
279,553
Offering
costs
(Note
1f)
....................................
—
102,052
—
Accrued
expenses
and
other
liabilities
.........................
33,428
4,749
72,445
Total
liabilities
.......................................
1,671,594
228,227
14,320,126
Net
assets,
at
value
...............................
$456,144,704
$5,248,801
$865,877,411
Net
assets
consist
of:
Paid-in
capital
...........................................
$442,176,455
$5,073,069
$916,279,919
Total
distributable
earnings
(losses)
...........................
13,968,249
175,732
(50,402,508)
Net
assets,
at
value
...............................
$456,144,704
$5,248,801
$865,877,411
Franklin
Tax-Free
Trust
Financial
Statements
Statements
of
Assets
and
Liabilities
(continued)
August
31,
2020
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
131
Franklin
Massachusetts
Tax-Free
Income
Fund
Franklin
Municipal
Green
Bond
Fund
Franklin
New
Jersey
Tax-Free
Income
Fund
Class
A:
Net
assets,
at
value
.....................................
$53,722,766
$51,457
$114,039,056
Shares
outstanding
......................................
4,484,161
4,971
10,015,088
Net
asset
value
per
share
a
................................
$11.98
$10.35
$11.39
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
96.25%,
96.25%
and
96.25%,
respectively)
..........................
$12.45
$10.75
$11.83
Class
A1:
Net
assets,
at
value
.....................................
$255,532,069
$—
$534,627,839
Shares
outstanding
......................................
21,343,621
—
47,012,499
Net
asset
value
per
share
a
................................
$11.97
$—
$11.37
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
96.25%,
—%
and
96.25%,
respectively)
.............................
$12.44
$—
$11.81
Class
C:
Net
assets,
at
value
.....................................
$28,733,846
$9,973
$97,570,090
Shares
outstanding
......................................
2,370,478
964
8,464,082
Net
asset
value
and
maximum
offering
price
per
share
a
...........
$12.12
$10.35
$11.53
Class
R6:
Net
assets,
at
value
.....................................
$12,438,017
$4,972
$29,368,478
Shares
outstanding
......................................
1,038,232
480
2,579,837
Net
asset
value
and
maximum
offering
price
per
share
...........
$11.98
$10.35
$11.38
Advisor
Class:
Net
assets,
at
value
.....................................
$105,718,006
$5,182,399
$90,271,948
Shares
outstanding
......................................
8,829,693
500,738
7,930,669
Net
asset
value
and
maximum
offering
price
per
share
...........
$11.97
$10.35
$11.38
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
six
months
ended
August
31,
2020
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
132
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
......................................
$—
$—
$196,866
Controlled
affiliates
(Note
3
f
)
...............................
—
299,897
57,820
Non-controlled
affiliates
(Note
3
f
)
...........................
14,153
—
—
Interest:
Unaffiliated
issuers
......................................
53,120,080
9,583,721
150,854,916
Total
investment
income
.................................
53,134,233
9,883,618
151,109,602
Expenses:
Management
fees
(Note
3
a
)
.................................
8,485,183
2,625,460
14,289,165
Distribution
fees:
(Note
3c
)
    Class
A
..............................................
574,729
229,603
1,114,809
    Class
A1
.............................................
728,722
375,068
1,906,339
    Class
C
..............................................
581,086
—
1,403,211
Transfer
agent
fees:
(Note
3e
)
    Class
A
..............................................
181,353
55,859
324,401
    Class
A1
.............................................
572,828
152,269
1,384,060
    Class
C
..............................................
70,065
—
156,520
    Class
R6
.............................................
45,070
9,785
21,113
    Advisor
Class
..........................................
488,110
113,106
378,332
Custodian
fees
(Note
4
)
....................................
13,655
3,849
20,712
Reports
to
shareholders
....................................
95,890
23,572
128,661
Registration
and
filing
fees
..................................
99,864
52,621
183,679
Professional
fees
.........................................
33,459
27,131
160,164
Trustees'
fees
and
expenses
................................
11,039
3,139
19,889
Other
..................................................
97,717
34,249
151,856
Total
expenses
.......................................
12,078,770
3,705,711
21,642,911
Expense
reductions
(Note
4
)
.............................
(23,868)
(6,500)
(38,921)
Expenses
waived/paid
by
affiliates
(Note
3
f
and
3
g
)
............
(1,803,398)
(914,317)
(2,758)
Net
expenses
.......................................
10,251,504
2,784,894
21,601,232
Net
investment
income
..............................
42,882,729
7,098,724
129,508,370
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
Unaffiliated
issuers
....................................
(9,082,675)
(1,491,601)
(33,780,901)
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
....................................
(20,384,326)
4,626,957
(216,792,670)
Controlled
affiliates
(Note
3
f
)
.............................
—
179,551
(3,875)
Non-controlled
affiliates
(Note
3
f
)
..........................
(126,838)
—
—
Net
change
in
unrealized
appreciation
(depreciation)
..........
(20,511,164)
4,806,508
(216,796,545)
Net
realized
and
unrealized
gain
(loss)
..........................
(29,593,839)
3,314,907
(250,577,446)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
........
$13,288,890
$10,413,631
$(121,069,076)
Franklin
Tax-Free
Trust
Financial
Statements
Statements
of
Operations
(continued)
for
the
six
months
ended
August
31,
2020
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
133
Franklin
Massachusetts
Tax-Free
Income
Fund
Franklin
Municipal
Green
Bond
Fund
Franklin
New
Jersey
Tax-Free
Income
Fund
Investment
income:
Interest:
Unaffiliated
issuers
......................................
$7,228,952
$49,020
$14,850,608
Expenses:
Management
fees
(Note
3
a
)
.................................
1,129,209
16,118
2,076,082
Distribution
fees:
(Note
3c
)
Class
A
..............................................
58,310
—
132,556
Class
A1
.............................................
133,607
—
271,173
Class
C
..............................................
98,684
—
342,387
Transfer
agent
fees:
(Note
3e
)
Class
A
..............................................
16,229
—
37,986
Class
A1
.............................................
92,817
—
193,956
Class
C
..............................................
10,546
—
37,625
Class
R6
.............................................
2,657
—
4,260
Advisor
Class
..........................................
30,404
519
29,972
Custodian
fees
(Note
4
)
....................................
1,642
16
3,205
Reports
to
shareholders
....................................
10,154
2,320
18,125
Registration
and
filing
fees
..................................
25,346
1,026
19,275
Professional
fees
.........................................
27,319
22,758
41,468
Trustees'
fees
and
expenses
................................
1,338
—
2,791
Amortization
of
offering
costs
(Note
1f
)
.........................
—
28,586
—
Other
..................................................
16,042
820
28,992
Total
expenses
.......................................
1,654,304
72,163
3,239,853
Expense
reductions
(Note
4
)
.............................
(2,899)
(9)
(5,988)
Expenses
waived/paid
by
affiliates
(Note
3
f
and
3
g
)
............
(822)
(60,369)
—
Net
expenses
.......................................
1,650,583
11,785
3,233,865
Net
investment
income
..............................
5,578,369
37,235
11,616,743
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
Unaffiliated
issuers
....................................
661,929
2,205
(4,885,093)
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
....................................
(9,517,813)
(3,199)
(26,870,429)
Net
realized
and
unrealized
gain
(loss)
..........................
(8,855,884)
(994)
(31,755,522)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
........
$(3,277,515)
$36,241
$(20,138,779)
Franklin
Tax-Free
Trust
Financial
Statements
Statements
of
Changes
in
Net
Assets
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
134
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
29,
2020
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
29,
2020
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
............
$42,882,729
$87,879,283
$7,098,724
$15,654,343
Net
realized
gain
(loss)
............
(9,082,675)
180,683
(1,491,601)
(45,140)
Net
change
in
unrealized
appreciation
(depreciation)
.................
(20,511,164)
128,997,446
4,806,508
24,522,787
Net
increase
(decrease)
in
net
assets
resulting
from
operations
.
13,288,890
217,057,412
10,413,631
40,131,990
Distributions
to
shareholders:
Class
A
........................
(4,956,173)
(6,513,554)
(1,032,081)
(1,836,388)
Class
A1
.......................
(16,866,168)
(39,158,501)
(3,110,029)
(8,844,598)
Class
C
........................
(1,572,844)
(4,675,743)
—
—
Class
R6
.......................
(4,507,497)
(10,946,815)
(380,696)
(897,988)
Advisor
Class
...................
(14,949,928)
(30,495,604)
(2,535,203)
(5,152,791)
Total
distributions
to
shareholders
.....
(42,852,610)
(91,790,217)
(7,058,009)
(16,731,765)
Capital
share
transactions:
(Note
2
)
Class
A
........................
143,008,396
214,182,623
52,599,217
52,144,069
Class
A1
.......................
(62,292,260)
(111,891,220)
(28,542,309)
(76,434,842)
Class
C
........................
(62,936,433)
(66,319,360)
—
—
Class
R6
.......................
(29,349,778)
(21,048,015)
5,951,660
3,618,179
Advisor
Class
...................
(141,800,537)
(133,044,504)
154,309,044
10,383,727
Total
capital
share
transactions
.......
(153,370,612)
147,968,532
184,317,612
(10,288,867)
Net
increase
(decrease)
in
net
assets
.....................
(182,934,332)
273,235,727
187,673,234
13,111,358
Net
assets:
Beginning
of
period
................
3,814,854,309
3,541,618,582
1,021,241,077
1,008,129,719
End
of
period
.....................
$3,631,919,977
$3,814,854,309
$1,208,914,311
$1,021,241,077
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.
Semiannual
Report
135
Franklin
High
Yield
Tax-Free
Income
Fund
Franklin
Massachusetts
Tax-Free
Income
Fund
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
29,
2020
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
29,
2020
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
............
$129,508,370
$255,266,540
$5,578,369
$12,022,609
Net
realized
gain
(loss)
............
(33,780,901)
(4,116,870)
661,929
477,523
Net
change
in
unrealized
appreciation
(depreciation)
.................
(216,796,545)
357,569,116
(9,517,813)
27,197,857
Net
increase
(decrease)
in
net
assets
resulting
from
operations
.
(121,069,076)
608,718,786
(3,277,515)
39,697,989
Distributions
to
shareholders:
Class
A
........................
(17,489,524)
(23,830,777)
(555,451)
(837,363)
Class
A1
.......................
(77,813,481)
(178,149,877)
(3,400,200)
(8,980,364)
Class
C
........................
(7,508,547)
(19,166,366)
(297,898)
(737,682)
Class
R6
.......................
(2,574,340)
(4,600,685)
(163,537)
(303,440)
Advisor
Class
...................
(21,691,420)
(46,935,052)
(1,141,240)
(1,516,542)
Total
distributions
to
shareholders
.....
(127,077,312)
(272,682,757)
(5,558,326)
(12,375,391)
Capital
share
transactions:
(Note
2
)
Class
A
........................
118,093,251
524,666,398
10,282,774
22,222,044
Class
A1
.......................
(254,661,561)
(194,542,107)
(45,270,913)
(26,183,797)
Class
C
........................
(78,872,747)
(97,297,026)
(2,360,233)
(3,533,757)
Class
R6
.......................
7,083,575
31,446,823
216,383
10,555,828
Advisor
Class
...................
(29,297,495)
116,542,321
45,215,363
6,842,984
Total
capital
share
transactions
.......
(237,654,977)
380,816,409
8,083,374
9,903,302
Net
increase
(decrease)
in
net
assets
.....................
(485,801,365)
716,852,438
(752,467)
37,225,900
Net
assets:
Beginning
of
period
................
6,879,319,514
6,162,467,076
456,897,171
419,671,271
End
of
period
.....................
$6,393,518,149
$6,879,319,514
$456,144,704
$456,897,171
Franklin
Tax-Free
Trust
Financial
Statements
Statements
of
Changes
in
Net
Assets
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
136
Franklin
Municipal
Green
Bond
Fund
Franklin
New
Jersey
Tax-Free
Income
Fund
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
29,
2020
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
29,
2020
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
............
$37,235
$16,806
$11,616,743
$24,775,565
Net
realized
gain
(loss)
............
2,205
—
(4,885,093)
70,458
Net
change
in
unrealized
appreciation
(depreciation)
.................
(3,199)
174,930
(26,870,429)
50,355,377
Net
increase
(decrease)
in
net
assets
resulting
from
operations
.
36,241
191,736
(20,138,779)
75,201,400
Distributions
to
shareholders:
Class
A
........................
(38)
—
(1,364,676)
(2,216,307)
Class
A1
.......................
—
—
(7,403,750)
(17,323,131)
Class
C
........................
(8)
—
(1,133,511)
(2,898,541)
Class
R6
.......................
(8)
—
(425,576)
(772,945)
Advisor
Class
...................
(37,252)
(16,619)
(1,181,582)
(2,424,921)
Total
distributions
to
shareholders
.....
(37,306)
(16,619)
(11,509,095)
(25,635,845)
Capital
share
transactions:
(Note
2
)
Class
A
........................
52,007
—
8,715,918
48,663,356
Class
A1
.......................
—
—
(30,075,890)
(44,766,315)
Class
C
........................
10,000
—
(15,840,852)
(15,082,222)
Class
R6
.......................
5,000
—
(2,744,469)
11,464,561
Advisor
Class
...................
7,742
5,000,000
11,098,681
1,796,133
Total
capital
share
transactions
.......
74,749
5,000,000
(28,846,612)
2,075,513
Net
increase
(decrease)
in
net
assets
.....................
73,684
5,175,117
(60,494,486)
51,641,068
Net
assets:
Beginning
of
period
................
5,175,117
—
926,371,897
874,730,829
End
of
period
.....................
$5,248,801
$5,175,117
$865,877,411
$926,371,897
a
For
the
period
October
1,
2019
(commencement
of
operations)
to
February
29,
2020.
Franklin
Tax-Free
Trust
137
franklintempleton.com
Semiannual
Report
Notes
to
Financial
Statements
(unaudited)
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-
three
separate
funds,
six
of
which
are
included
in
this
report
(Funds)
and
applies
the
specialized
accounting
and
reporting
guidance
in
U.S.
Generally
Accepted
Accounting
Principles
(U.S.
GAAP).
The
classes
of
shares
offered
within
each
of
the
Funds
are
indicated
below.
Class
C
shares
automatically
convert
to
Class
A
shares
after
they
have
been
held
for
10
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
Franklin
Municipal
Green
Bond
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
Effective
July
24,
2020,
Franklin
Municipal
Green
Bond
Fund
began
offering
new
classes
of
shares:
Class
A,
Class
C
and
Class
R6.
Class
A
,
Class
C,
Class
R6
&
Advisor
Class
Franklin
Municipal
Green
Bond
Fund
The
following
summarizes
the Funds'
significant
accounting
policies
. 
a.
Financial
Instrument
Valuation 
The Funds'
investments
in
financial
instruments
are
carried
at
fair
value
daily.
Fair
value
is
the
price
that
would
be
received
to
sell
an
asset
or
paid
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
on
the
measurement
date.
The Funds calculate the
net
asset
value
(NAV)
per
share
each business
day as
of
4
p.m.
Eastern
time
or
the
regularly
scheduled
close
of
the
New
York
Stock
Exchange
(NYSE),
whichever
is
earlier.
Under
compliance
policies
and
procedures
approved
by
the
Trust’s
Board
of
Trustees
(the
Board),
the
Funds' administrator
has
responsibility
for
oversight
of
valuation,
including
leading
the
cross-functional
Valuation
Committee
(VC).
The
Funds
may
utilize
independent
pricing
services,
quotations
from
securities
and
financial
instrument
dealers,
and
other
market
sources
to
determine
fair
value. 
Equity
securities
and
exchange
traded
funds
listed
on
an
exchange
or
on
the
NASDAQ
National
Market
System
are
valued
at
the
last
quoted
sale
price
or
the
official
closing
price of
the
day,
respectively.
Over-the-counter
(OTC)
securities
are
valued
within
the
range
of
the
most
recent
quoted
bid
and
ask
prices.
Securities
that
trade
in
multiple
markets
or
on
multiple
exchanges
are
valued
according
to
the
broadest
and
most
representative
market.
Certain
equity
securities
are
valued
based
upon
fundamental
characteristics
or
relationships
to
similar
securities. 
Debt
securities
generally
trade
in
the
OTC
market
rather
than
on
a
securities
exchange.
The
Funds'
pricing
services
use
multiple
valuation
techniques
to
determine
fair
value.
In
instances
where
sufficient
market
activity
exists,
the
pricing
services
may
utilize
a
market-based
approach
through
which
quotes
from
market
makers
are
used
to
determine
fair
value.
In
instances
where
sufficient
market
activity
may
not
exist
or
is
limited,
the
pricing
services
also
utilize
proprietary
valuation
models
which
may
consider
market
characteristics
such
as
benchmark
yield
curves,
credit
spreads,
estimated
default
rates,
anticipated
market
interest
rate
volatility,
coupon
rates,
anticipated
timing
of
principal
repayments,
underlying
collateral,
and
other
unique
security
features
in
order
to
estimate
the
relevant
cash
flows,
which
are
then
discounted
to
calculate
the
fair
value.
The
Funds
have
procedures
to
determine
the
fair
value
of
financial
instruments
for
which
market
prices
are
not
reliable
or
readily
available.
Under
these
procedures,
the
Funds
primarily
employ
a
market-based
approach
which
may
use
related
or
comparable
assets
or
liabilities,
recent
transactions,
market
multiples,
book
values,
and
other
relevant
information
for
the
investment
to
determine
the
fair
value
of
the
investment.
An
income-based
valuation
approach
may
also
be
used
in
which
the
anticipated
future
cash
flows
of
the
investment
are
discounted
to
calculate
fair
value.
Discounts
may
also
be
applied
due
to
the
nature
or
duration
of
any
restrictions
on
the
disposition
of
the
investments.
Due
to
the
inherent
uncertainty
of
valuations
of
such
investments,
the
fair
values
may
differ
significantly
from
the
values
that
would
have
been
used
had
an
active
market
existed.
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
(unaudited)
138
franklintempleton.com
Semiannual
Report
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.
Sufficient
assets
have
been
segregated
for
these
securities.
c.
Income
Taxes
It
is each
Fund's
policy
to
qualify
as
a
regulated
investment
company
under
the
Internal
Revenue
Code. Each
Fund
intends
to
distribute
to
shareholders
substantially
all
of
its
income
and
net
realized
gains
to
relieve
it
from
federal
income
and
excise
taxes.
As
a
result,
no
provision
for
U.S.
federal
income
taxes
is
required.
Each
Fund
may
recognize
an
income
tax
liability
related
to
its
uncertain
tax
positions
under
U.S.
GAAP
when
the
uncertain
tax
position
has
a
less
than
50%
probability
that
it
will
be
sustained
upon
examination
by
the
tax
authorities
based
on
its
technical
merits.
As
of
August
31,
2020,
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.
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.
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.
Offering
Costs
Offering
costs
are
amortized
on
a
straight
line
basis
over
twelve
months.
1.
Organization
and
Significant
Accounting
Policies
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
(unaudited)
139
franklintempleton.com
Semiannual
Report
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
August
31,
2020,
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:
Six
Months
ended
August
31,
2020
Shares
sold
a
...................................
16,342,793
$199,180,398
8,133,113
$85,485,771
Shares
issued
in
reinvestment
of
distributions
..........
379,923
4,633,481
94,971
1,000,434
Shares
redeemed
...............................
(5,024,152)
(60,805,483)
(3,232,863)
(33,886,988)
Net
increase
(decrease)
..........................
11,698,564
$143,008,396
4,995,221
$52,599,217
Year
ended
February
29,
2020
Shares
sold
a
...................................
23,107,911
$280,846,171
8,602,860
$90,137,584
Shares
issued
in
reinvestment
of
distributions
..........
504,307
6,140,740
168,375
1,764,430
Shares
redeemed
...............................
(5,987,656)
(72,804,288)
(3,799,323)
(39,757,945)
Net
increase
(decrease)
..........................
17,624,562
$214,182,623
4,971,912
$52,144,069
Class
A1
Class
A1
Shares:
Six
Months
ended
August
31,
2020
Shares
sold
...................................
3,039,468
$36,887,345
1,397,057
$14,714,559
Shares
issued
in
reinvestment
of
distributions
..........
1,299,741
15,818,174
271,728
2,863,309
Shares
redeemed
...............................
(9,536,581)
(114,997,779)
(4,414,824)
(46,120,177)
Net
increase
(decrease)
..........................
(5,197,372)
$(62,292,260)
(2,746,039)
$(28,542,309)
Year
ended
February
29,
2020
Shares
sold
...................................
7,255,556
$88,080,091
1,990,450
$20,874,172
Shares
issued
in
reinvestment
of
distributions
..........
3,009,335
36,539,255
776,056
8,133,060
Shares
redeemed
...............................
(19,508,327)
(236,510,566)
(10,074,821)
(105,442,074)
Net
increase
(decrease)
..........................
(9,243,436)
$(111,891,220)
(7,308,315)
$(76,434,842)
Class
C
1.
Organization
and
Significant
Accounting
Policies
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
(unaudited)
140
franklintempleton.com
Semiannual
Report
Franklin
Federal
Intermediate-
Term
Tax-Free
Income
Fund
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
Shares
Amount
Shares
Amount
Class
C
Shares:
Six
Months
ended
August
31,
2020
Shares
sold
...................................
713,199
$8,684,547
—
$—
Shares
issued
in
reinvestment
of
distributions
..........
115,073
1,403,415
—
—
Shares
redeemed
a
..............................
(5,961,774)
(73,024,395)
—
—
Net
increase
(decrease)
..........................
(5,133,502)
$(62,936,433)
—
$—
Six
Months
ended
February
29,
2020
Shares
sold
...................................
1,815,746
$22,103,744
—
$—
Shares
issued
in
reinvestment
of
distributions
..........
331,689
4,036,965
—
—
Shares
redeemed
a
..............................
(7,606,004)
(92,460,069)
—
—
Net
increase
(decrease)
..........................
(5,458,569)
$(66,319,360)
—
$—
Class
R6
Class
R6
Shares:
Six
Months
ended
August
31,
2020
Shares
sold
...................................
4,151,045
$50,790,436
1,383,828
$14,535,427
Shares
issued
in
reinvestment
of
distributions
..........
362,241
4,419,414
31,873
335,801
Shares
redeemed
...............................
(7,075,428)
(84,559,628)
(855,506)
(8,919,568)
Net
increase
(decrease)
..........................
(2,562,142)
$(29,349,778)
560,195
$5,951,660
Year
ended
February
29,
2020
Shares
sold
...................................
4,749,979
$57,800,239
1,611,380
$16,865,451
Shares
issued
in
reinvestment
of
distributions
..........
873,054
10,629,965
67,776
710,072
Shares
redeemed
...............................
(7,366,560)
(89,478,219)
(1,332,822)
(13,957,344)
Net
increase
(decrease)
..........................
(1,743,527)
$(21,048,015)
346,334
$3,618,179
Advisor
Class
Advisor
Class
Shares:
Six
Months
ended
August
31,
2020
Shares
sold
...................................
15,013,945
$182,920,341
16,734,776
$176,077,810
Shares
issued
in
reinvestment
of
distributions
..........
830,911
10,138,854
66,613
702,045
Shares
redeemed
...............................
(27,538,014)
(334,859,732)
(2,153,394)
(22,470,811)
Net
increase
(decrease)
..........................
(11,693,158)
$(141,800,537)
14,647,995
$154,309,044
Year
ended
February
29,
2020
Shares
sold
...................................
28,624,236
$348,698,279
8,255,152
$86,310,841
Shares
issued
in
reinvestment
of
distributions
..........
1,740,780
21,197,702
173,097
1,813,537
Shares
redeemed
...............................
(19,475,888)
(236,851,477)
(7,416,057)
(77,740,651)
Net
increase
(decrease)
..........................
10,889,128
$133,044,504
1,012,192
$10,383,727
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
(unaudited)
141
franklintempleton.com
Semiannual
Report
Franklin
High
Yield
Tax-Free
Income
Fund
Franklin
Massachusetts
Tax-Free
Income
Fund
Shares
Amount
Shares
Amount
Class
A
Class
A
Shares:
Six
Months
ended
August
31,
2020
Shares
sold
a
...................................
15,758,415
$203,498,264
1,302,987
$15,527,688
Shares
issued
in
reinvestment
of
distributions
..........
6,328,421
15,703,620
42,693
506,902
Shares
redeemed
...............................
(10,338,038)
(101,108,633)
(495,257)
(5,751,816)
Net
increase
(decrease)
..........................
11,748,798
$118,093,251
850,423
$10,282,774
Year
ended
February
29,
2020
Shares
sold
a
...................................
56,970,141
$580,665,906
2,152,720
$25,433,043
Shares
issued
in
reinvestment
of
distributions
..........
2,227,025
22,768,967
66,138
785,228
Shares
redeemed
...............................
(7,719,781)
(78,768,475)
(336,933)
(3,996,227)
Net
increase
(decrease)
..........................
51,477,385
$524,666,398
1,881,925
$22,222,044
Class
A1
Class
A1
Shares:
Six
Months
ended
August
31,
2020
Shares
sold
...................................
6,722,349
$156,151,729
355,146
$4,159,346
Shares
issued
in
reinvestment
of
distributions
..........
16,424,505
69,628,113
232,824
2,760,188
Shares
redeemed
...............................
(48,746,303)
(480,441,403)
(4,453,636)
(52,190,447)
Net
increase
(decrease)
..........................
(25,599,449)
$(254,661,561)
(3,865,666)
$(45,270,913)
Year
ended
February
29,
2020
Shares
sold
...................................
18,502,514
$188,354,822
657,068
$7,759,290
Shares
issued
in
reinvestment
of
distributions
..........
15,643,251
159,427,896
626,129
7,410,933
Shares
redeemed
...............................
(53,266,423)
(542,324,825)
(3,498,317)
(41,354,020)
Net
increase
(decrease)
..........................
(19,120,658)
$(194,542,107)
(2,215,120)
$(26,183,797)
Class
C
Class
C
Shares:
Six
Months
ended
August
31,
2020
Shares
sold
...................................
1,797,246
$25,216,091
250,066
$3,018,548
Shares
issued
in
reinvestment
of
distributions
..........
1,384,227
6,929,774
21,853
262,381
Shares
redeemed
a
..............................
(10,984,575)
(111,018,612)
(469,720)
(5,641,162)
Net
increase
(decrease)
..........................
(7,803,102)
$(78,872,747)
(197,801)
$(2,360,233)
Year
ended
February
29,
2020
Shares
sold
...................................
7,595,608
$79,019,149
457,604
$5,498,934
Shares
issued
in
reinvestment
of
distributions
..........
1,675,695
17,421,658
54,328
650,568
Shares
redeemed
a
..............................
(18,672,136)
(193,737,833)
(810,184)
(9,683,259)
Net
increase
(decrease)
..........................
(9,400,833)
$(97,297,026)
(298,252)
$(3,533,757)
Class
R6
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
(unaudited)
142
franklintempleton.com
Semiannual
Report
Franklin
High
Yield
Tax-Free
Income
Fund
Franklin
Massachusetts
Tax-Free
Income
Fund
Shares
Amount
Shares
Amount
Class
R6
Shares:
Six
Months
ended
August
31,
2020
Shares
sold
...................................
1,826,052
$30,028,463
62,286
$741,471
Shares
issued
in
reinvestment
of
distributions
..........
1,428,656
2,214,984
2,764
32,821
Shares
redeemed
...............................
(2,566,516)
(25,159,872)
(47,632)
(557,909)
Net
increase
(decrease)
..........................
688,192
$7,083,575
17,418
$216,383
Year
ended
February
29,
2020
Shares
sold
...................................
5,487,791
$56,155,177
975,792
$11,348,865
Shares
issued
in
reinvestment
of
distributions
..........
392,862
4,028,105
5,132
60,884
Shares
redeemed
...............................
(2,812,591)
(28,736,459)
(72,104)
(853,921)
Net
increase
(decrease)
..........................
3,068,062
$31,446,823
908,820
$10,555,828
Advisor
Class
Advisor
Class
Shares:
Six
Months
ended
August
31,
2020
Shares
sold
...................................
14,896,829
$225,905,036
4,605,415
$54,254,147
Shares
issued
in
reinvestment
of
distributions
..........
9,666,845
17,382,748
91,349
1,085,109
Shares
redeemed
...............................
(27,890,299)
(272,585,279)
(861,585)
(10,123,893)
Net
increase
(decrease)
..........................
(3,326,625)
$(29,297,495)
3,835,179
$45,215,363
Year
ended
February
29,
2020
Shares
sold
...................................
35,420,254
$362,924,818
1,934,090
$22,876,419
Shares
issued
in
reinvestment
of
distributions
..........
3,733,274
38,248,306
114,901
1,362,066
Shares
redeemed
...............................
(27,832,910)
(284,630,803)
(1,487,954)
(17,395,501)
Net
increase
(decrease)
..........................
11,320,618
$116,542,321
561,037
$6,842,984
Franklin
Municipal
Green
Bond
Fund
Franklin
New
Jersey
Tax-Free
Income
Fund
Shares
Amount
Shares
Amount
Class
A
Class
A
Shares:
Six
Months
ended
August
31,
2020
b
Shares
sold
a
...................................
4,970
$52,000
1,689,018
$19,094,152
Shares
issued
in
reinvestment
of
distributions
..........
1
7
107,866
1,213,012
Shares
redeemed
...............................
—
—
(1,051,623)
(11,591,246)
Net
increase
(decrease)
..........................
4,971
$52,007
745,261
$8,715,918
Year
ended
February
29,
2020
Shares
sold
a
...................................
—
$—
4,942,542
$56,506,702
Shares
issued
in
reinvestment
of
distributions
..........
—
—
177,179
2,032,984
Shares
redeemed
...............................
—
—
(863,914)
(9,876,330)
Net
increase
(decrease)
..........................
—
$—
4,255,807
$48,663,356
Class
A1
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
(unaudited)
143
franklintempleton.com
Semiannual
Report
Franklin
Municipal
Green
Bond
Fund
Franklin
New
Jersey
Tax-Free
Income
Fund
Shares
Amount
Shares
Amount
Class
A1
Shares:
Six
Months
ended
August
31,
2020
Shares
sold
...................................
—
$—
843,489
$9,428,152
Shares
issued
in
reinvestment
of
distributions
..........
—
—
544,479
6,112,591
Shares
redeemed
...............................
—
—
(4,089,377)
(45,616,633)
Net
increase
(decrease)
..........................
—
$—
(2,701,409)
$(30,075,890)
Year
ended
February
29,
2020
Shares
sold
...................................
—
$—
1,403,946
$16,050,200
Shares
issued
in
reinvestment
of
distributions
..........
—
—
1,257,151
14,376,194
Shares
redeemed
...............................
—
—
(6,580,001)
(75,192,709)
Net
increase
(decrease)
..........................
—
$—
(3,918,904)
$(44,766,315)
Class
C
Class
C
Shares:
Six
Months
ended
August
31,
2020
b
Shares
sold
...................................
964
$10,000
347,667
$3,977,938
Shares
issued
in
reinvestment
of
distributions
..........
—
—
90,106
1,024,968
Shares
redeemed
a
..............................
—
—
(1,840,537)
(20,843,758)
Net
increase
(decrease)
..........................
964
$10,000
(1,402,764)
$(15,840,852)
Year
ended
February
29,
2020
Shares
sold
...................................
—
$—
2,000,580
$23,117,844
Shares
issued
in
reinvestment
of
distributions
..........
—
—
224,800
2,605,509
Shares
redeemed
a
..............................
—
—
(3,527,474)
(40,805,575)
Net
increase
(decrease)
..........................
—
$—
(1,302,094)
$(15,082,222)
Class
R6
Class
R6
Shares:
Six
Months
ended
August
31,
2020
b
Shares
sold
...................................
480
$5,000
476,054
$5,330,443
Shares
issued
in
reinvestment
of
distributions
..........
—
—
37,615
422,640
Shares
redeemed
...............................
—
—
(769,565)
(8,497,552)
Net
increase
(decrease)
..........................
480
$5,000
(255,896)
$(2,744,469)
Year
ended
February
29,
2020
Shares
sold
...................................
—
$—
1,291,109
$14,770,608
Shares
issued
in
reinvestment
of
distributions
..........
—
—
66,918
767,372
Shares
redeemed
...............................
—
—
(359,083)
(4,073,419)
Net
increase
(decrease)
..........................
—
$—
998,944
$11,464,561
Advisor
Class
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
(unaudited)
144
franklintempleton.com
Semiannual
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:
a.
Management
Fees
The
Funds,
except
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund,
pay
an
investment
management
fee
to
Advisers
based
on
the
month-end
net
assets
of
each
of
the
Funds
and
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
pays
an
investment
management
fee
to
Advisers
based
on
the
average
daily
net
assets
of
the
fund
as
follows:
Franklin
Municipal
Green
Bond
Fund
Franklin
New
Jersey
Tax-Free
Income
Fund
Shares
Amount
Shares
Amount
Advisor
Class
Shares:
Six
Months
ended
August
31,
2020
Shares
sold
...................................
737
$7,734
2,449,086
$27,444,136
Shares
issued
in
reinvestment
of
distributions
..........
1
8
95,472
1,073,267
Shares
redeemed
...............................
—
—
(1,560,010)
(17,418,722)
Net
increase
(decrease)
..........................
738
$7,742
984,548
$11,098,681
Year
ended
February
29,
2020
c
Shares
sold
...................................
500,000
$5,000,000
1,872,835
$21,417,116
Shares
issued
in
reinvestment
of
distributions
..........
—
—
189,349
2,167,799
Shares
redeemed
...............................
—
—
(1,904,478)
(21,788,782)
Net
increase
(decrease)
..........................
500,000
$5,000,000
157,706
$1,796,133
a
May
include
a
portion
of
Class
C
shares
that
were
automatically
converted
to
Class
A.
b
For
the
period
July
24,
2020
(effective
date)
to
August
31,
2020.
c
For
the
period
October
1,
2019
(commencement
of
operations)
to
February
29,
2020.
Subsidiary
Affiliation
Franklin
Advisers,
Inc.
(Advisers)
Investment
manager
Franklin
Templeton
Services,
LLC
(FT
Services)
Administrative
manager
Franklin
Templeton
Distributors,
Inc.
(Distributors)
Principal
underwriter
Franklin
Templeton
Investor
Services,
LLC
(Investor
Services)
Transfer
agent
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
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
(unaudited)
145
franklintempleton.com
Semiannual
Report
For
the
period
ended
August
31,
2020,
each
Fund's
annualized
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
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:
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
........
0.458%
0.472%
0.453%
Franklin
Massachusetts
Tax-Free
Income
Fund
Franklin
Municipal
Green
Bond
Fund
Franklin
New
Jersey
Tax-Free
Income
Fund
Gross
effective
investment
management
fee
rate
........
0.508%
0.629%
0.479%
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%
3.
Transactions
with
Affiliates
(continued)
a.
Management
Fees
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
(unaudited)
146
franklintempleton.com
Semiannual
Report
d.
Sales
Charges/Underwriting
Agreements
Front-end
sales
charges
and
contingent
deferred
sales
charges
(CDSC)
do
not
represent
expenses
of
the
Funds.
These
charges
are
deducted
from
the
proceeds
of
sales
of
fund
shares
prior
to
investment
or
from
redemption
proceeds
prior
to
remittance,
as
applicable.
Distributors
has
advised
the
Funds
of
the
following
commission
transactions
related
to
the
sales
and
redemptions
of
the
Funds'
shares
for
the
period:
e.
Transfer
Agent
Fees
Each
class
of
shares
pays
transfer
agent
fees
to
Investor
Services
for
its
performance
of
shareholder
servicing
obligations.
The
fees
are
based
on
an
annualized
asset
based
fee
of
0.02%
plus
a
transaction
based
fee.
In
addition,
each
class
reimburses
Investor
Services
for
out
of
pocket
expenses
incurred
and,
except
for
Class
R6,
reimburses
shareholder
servicing
fees
paid
to
third
parties.
These
fees
are
allocated
daily
based
upon
their
relative
proportion
of
such
classes'
aggregate
net
assets.
Class
R6
pays
Investor
Services
transfer
agent
fees
specific
to
that
class.
For
the
period
ended
August
31,
2020,
the
Funds
paid
transfer
agent
fees
as
noted
in
the
Statements
of
Operations
of
which
the
following
amounts
were
retained
by
Investor
Services:
Franklin
Municipal
Green
Bond
Fund
Franklin
New
Jersey
Tax-Free
Income
Fund
Reimbursement
Plans:
Class
A
...............................
0.25%
0.25%
Class
A1
..............................
—
0.10%
Compensation
Plans:
Class
C
...............................
0.65%
0.65%
Franklin
Federal
Intermediate-
Term
Tax-Free
Income
Fund
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
Franklin
High
Yield
Tax-Free
Income
Fund
Sales
charges
retained
net
of
commissions
paid
to
unaffiliated
brokers/dealers
..................
$14,430
$3,603
$53,199
CDSC
retained
...........................
$51,798
$9,785
$106,771
Franklin
Massachusetts
Tax-Free
Income
Fund
Franklin
Municipal
Green
Bond
Fund
Franklin
New
Jersey
Tax-Free
Income
Fund
Sales
charges
retained
net
of
commissions
paid
to
unaffiliated
brokers/dealers
..................
$2,955
$—
$5,668
CDSC
retained
...........................
$3,400
$—
$48,553
3.
Transactions
with
Affiliates
(continued)
c.
Distribution
Fees
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
(unaudited)
147
franklintempleton.com
Semiannual
Report
f.
Investments
in
Affiliated
Management
Investment
Companies
Certain
or
all
Funds
invest
in
one
or
more
affiliated
management
investment
companies
for
purposes
other
than
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
period
ended
August
31,
2020,
investments
in
affiliated
management
investment
companies
were
as
follows:
Franklin
Federal
Intermediate-
Term
Tax-Free
Income
Fund
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
Franklin
High
Yield
Tax-Free
Income
Fund
Transfer
agent
fees
........................
$476,973
$146,233
$906,955
Franklin
Massachusetts
Tax-Free
Income
Fund
Franklin
Municipal
Green
Bond
Fund
Franklin
New
Jersey
Tax-Free
Income
Fund
Transfer
agent
fees
........................
$76,073
$772
$149,352
a
Value
at
Beginning
of
Period
Purchases
Sales
Realized
Gain
(Loss)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
End
of
Period
Number
of
Shares
Held
at
End
of
Period
Investment
Income
a
a
a
a
a
a
a
a
a
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
Non-Controlled
Affiliates
Dividends
Franklin
Liberty
Municipal
Bond
ETF
....................
$—
$9,941,688
$—
$
—
$
(126,838)
$
9,814,850
365,000
$
14,153
Total
Affiliated
Securities
....
$—
$9,941,688
$—
$—
$(126,838)
$9,814,850
$14,153
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
Controlled
Affiliates
Dividends
Franklin
Liberty
Municipal
Bond
ETF
....................
$19,265,675
$9,192,624
$—
$
—
$
179,551
$
28,637,850
1,065,000
$
299,897
Total
Affiliated
Securities
....
$19,265,675
$9,192,624
$—
$—
$179,551
$28,637,850
$299,897
Franklin
High
Yield
Tax-Free
Income
Fund
Controlled
Affiliates
Dividends
Franklin
Liberty
Intermediate
Municipal
Opportunities
ETF
...
$2,604,000
$11,463,375
$—
$
—
$(3,875)
$14,063,500
550,000
$57,820
Total
Affiliated
Securities
....
$2,604,000
$11,463,375
$—
$—
$(3,875)
$14,063,500
$57,820
3.
Transactions
with
Affiliates
(continued)
e.
Transfer
Agent
Fees
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
(unaudited)
148
franklintempleton.com
Semiannual
Report
g.
Waiver
and
Expense
Reimbursements
Advisers
has
contractually
agreed
in
advance
to
waive
or
limit
its
fees
and
to
assume
as
its
own
expense
certain
expenses
otherwise
payable
by
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund,
Franklin
Limited-Term
Tax-Free
Income
Fund
and
Franklin
Municipal
Green
Bond
Fund
so
that
the
operating
expenses
(excluding
distribution
fees,
acquired
fund
fees
and
expenses
and
certain
non-routine
expenses
or
costs,
including
those
relating
to
litigation,
indemnification,
reorganizations,
and
liquidations)
for
each
class
of
the
Funds
do
not
exceed
0.46%,
0.40%,
and
0.46%,
respectively,
based
on
the
average
net
assets
of
each
class
until
June
30,
2021.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
Class
R6
transfer
agent
fees
do
not
exceed
0.02%
based
on
the
average
net
assets
of
the
class
until
June
30,
2021.
For
Franklin
High
Yield
Tax-Free
Income
Fund,
Franklin
Massachusetts
Tax-Free
Income
Fund,
Franklin
Municipal
Green
Bond
Fund
and
Franklin
New
Jersey
Tax-Free
Income
Fund,
Investor
Services
has
contractually
agreed
in
advance
to
waive
or
limit
its
fees
so
that
the
Class
R6
transfer
agent
fees
do
not
exceed
0.03%
based
on
the
average
net
assets
of
the
class
until
June
30,
2021.
h.
Other
Affiliated
Transactions
At
August
31,
2020,
Franklin
Resources,
Inc.
owned
100%
of
Franklin
Municipal
Green
Bond
Fund’s
outstanding
shares.
Investment
activities
of
this
investment
company
could
have
a
material
impact
on
the
Fund.
i.
Interfund
Transactions
Certain
or
all
Funds
engaged
in
purchases
and
sales
of
investments
with
funds
or
other
accounts
that
have
common
investment
managers
(or
affiliated
investment
managers),
directors,
trustees
or
officers.
These
purchases
and
sales
for
the
period
ended
August
31,
2020,
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 period
ended
August
31,
2020 the
custodian
fees
were
reduced
as
noted
in
the
Statements
of
Operations.
Franklin
Federal
Intermediate-
Term
Tax-Free
Income
Fund
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
Franklin
High
Yield
Tax-Free
Income
Fund
Purchases
..............................
$67,800,000
$118,256,450
$167,533,011
Sales
..................................
$87,185,000
$107,195,000
$166,150,000
Franklin
Massachusetts
Tax-Free
Income
Fund
Franklin
Municipal
Green
Bond
Fund
Franklin
New
Jersey
Tax-Free
Income
Fund
Purchases
..............................
$2,935,000
—
$4,800,000
Sales
..................................
$1,500,000
—
$2,200,000
3.
Transactions
with
Affiliates
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
(unaudited)
149
franklintempleton.com
Semiannual
Report
5.
Income
Taxes
For
tax
purposes,
capital
losses
may
be
carried
over
to
offset
future
capital
gains.
At
February
29,
2020,
the
capital
loss
carryforwards
were
as
follows:
a
Includes
$97,006,620
from
the
merged
Franklin
Double
Tax-Free
Income
Fund,
which
may
be
carried
over
to
offset
future
capital
gains,
subject
to
certain
limitations. 
At
August
31,
2020,
the
cost
of
investments
and
net
unrealized
appreciation
(depreciation)
for
income
tax
purposes
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
1
1
1
1
Capital
loss
carryforwards
not
subject
to
expiration:
Short
term
.............................
$
43,632,556
$
1,957,897
$
180,742,829
Long
term
.............................
28,105,463
3,525,609
718,430,807
Total
capital
loss
carryforwards
............
$71,738,019
$5,483,506
$899,173,636
Franklin
Massachusetts
Tax-Free
Income
Fund
Franklin
Municipal
Green
Bond
Fund
Franklin
New
Jersey
Tax-Free
Income
Fund
1
1
1
1
Capital
loss
carryforwards
not
subject
to
expiration:
Short
term
.............................
$
9,151,607
$
—
$
11,541,709
Long
term
.............................
10,801,557
—
79,992,809
Total
capital
loss
carryforwards
............
$19,953,164
$—
$91,534,518
Franklin
Federal
Intermediate-
Term
Tax-Free
Income
Fund
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
Franklin
High
Yield
Tax-Free
Income
Fund
a
a
a
a
Cost
of
investments
.......................
$3,393,844,651
$1,178,295,575
$5,620,626,924
Unrealized
appreciation
.....................
$228,080,891
$37,649,128
$794,405,048
Unrealized
depreciation
.....................
(1,784,408)
(500,354)
(95,798,651)
Net
unrealized
appreciation
(depreciation)
.......
$226,296,483
$37,148,774
$698,606,397
Franklin
Massachusetts
Tax-Free
Income
Fund
Franklin
Municipal
Green
Bond
Fund
Franklin
New
Jersey
Tax-Free
Income
Fund
a
a
a
a
Cost
of
investments
.......................
$414,321,586
$5,028,053
$824,613,698
Unrealized
appreciation
.....................
$33,278,801
$182,145
$52,310,330
Unrealized
depreciation
.....................
(20,012)
(10,414)
(6,477,138)
Net
unrealized
appreciation
(depreciation)
.......
$33,258,789
$171,731
$45,833,192
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
(unaudited)
150
franklintempleton.com
Semiannual
Report
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,
bond
discounts
and
bond
workout
expenditures.
6.
Investment
Transactions
Purchases
and
sales
of
investments
(excluding
short
term
securities)
for
the
period
ended
August
31,
2020,
were
as
follows:
7.
Credit Risk
and
Defaulted
Securities
At
August
31,
2020,
Franklin
High
Yield
Tax-Free
Income
Fund
had
32.8%
of
its
portfolio
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
August
31,
2020,
the
aggregate
value
of
these
securities
for
Franklin
High
Yield
Tax-Free
Income
Fund
and
Franklin
New
Jersey
Tax-Free
Income
Fund
was
$153,498,588
and
$9,334,406,
representing
2.4%
and
1.1%,
respectively,
of
each
Fund's
net
assets.
The
Funds
discontinue
accruing
income
on
securities
for
which
income
has
been
deemed
uncollectible
and
provide
an
estimate
for
losses
on
interest
receivable.
The
securities
have
been
identified
in
the
accompanying
Statements
of
Investments.
8.
Concentration
of
Risk
Certain
or
all
Funds
invest
a
large
percentage
of
their
total
assets
in
obligations
of
issuers
within
their respective
state
and
U.S.
territories.
Such
concentration
may
subject
the
Funds
to
risks
associated
with
industrial
or
regional
matters,
and
economic,
political
or
legal
developments
occurring
within
those
states
and
U.S.
territories.
Investing
in
Puerto
Rico
securities
may
expose
the
Funds
to
heightened
risks
due
to
recent
adverse
economic
and
market
changes,
credit
downgrades
and
ongoing
restructuring
discussions.
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.
Franklin
Federal
Intermediate-
Term
Tax-Free
Income
Fund
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
Franklin
High
Yield
Tax-Free
Income
Fund
Purchases
..............................
$401,082,505
$247,761,142
$1,366,776,887
Sales
..................................
$482,193,458
$106,509,470
$1,394,606,601
Franklin
Massachusetts
Tax-Free
Income
Fund
Franklin
Municipal
Green
Bond
Fund
Franklin
New
Jersey
Tax-Free
Income
Fund
Purchases
..............................
$60,147,766
$1,204,055
$78,591,073
Sales
..................................
$57,282,523
$154,439
$67,520,170
5.
Income
Taxes
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
(unaudited)
151
franklintempleton.com
Semiannual
Report
9. 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.
10.
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
billion
(Global
Credit
Facility)
which
matures
on
February
5,
2021.
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
period
ended
August
31,
2020,
the
Funds
did
not
use
the
Global
Credit
Facility.
11.
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
August
31,
2020,
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
.........
$
9,814,850
$
—
$
—
$
9,814,850
Municipal
Bonds
.........................
—
3,585,746,284
—
3,585,746,284
Short
Term
Investments
...................
—
24,580,000
—
24,580,000
Total
Investments
in
Securities
...........
$9,814,850
$3,610,326,284
$—
$3,620,141,134
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
Assets:
Investments
in
Securities:
Management
Investment
Companies
.........
$28,637,850
$—
$—
$
28,637,850
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
(unaudited)
152
franklintempleton.com
Semiannual
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 period.
12.
New
Accounting
Pronouncements
In
March
2020,
[the
Financial
Accounting
Standards
Board
(FASB)
issued
Accounting
Standards
Update
(ASU)
No.
2020-
04,
Reference
Rate
Reform
(Topic
848)
–
Facilitation
of
the
Effects
of
Reference
Rate
Reform
on
Financial
Reporting.
The
amendments
in
the
ASU
provides
optional
temporary
financial
reporting
relief
from
the
effect
of
certain
types
of
contract
modifications
due
to
the
planned
discontinuation
of
the
London
Interbank
Offered
Rate
and
other
interbank-offered
based
reference
rates
as
of
the
end
of
2021.
The
ASU
is
effective
for
certain
reference
rate-related
contract
modifications
that
occur
during
the
period
March
12,
2020
through
December
31,
2022.
Management
has
reviewed
the
requirements
and
believes
the
adoption
of
this
ASU
will
not
have
a
material
impact
on
the
financial
statements.
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
Federal
Limited-Term
Tax-Free
Income
Fund
(continued)
Municipal
Bonds
.........................
$
—
$
958,801,499
$
—
$
958,801,499
Short
Term
Investments
...................
—
228,005,000
—
228,005,000
Total
Investments
in
Securities
...........
$28,637,850
$1,186,806,499
$—
$1,215,444,349
Franklin
High
Yield
Tax-Free
Income
Fund
Assets:
Investments
in
Securities:
Management
Investment
Companies
.........
$54,226,794
$—
$—
$
54,226,794
U.S.
Government
and
Agency
Securities
.......
—
—
1,896,387
1,896,387
Municipal
Bonds
.........................
—
6,247,435,140
—
6,247,435,140
Short
Term
Investments
...................
—
15,675,000
—
15,675,000
Total
Investments
in
Securities
...........
$54,226,794
$6,263,110,140
$1,896,387
$6,319,233,321
Franklin
Massachusetts
Tax-Free
Income
Fund
Assets:
Investments
in
Securities:
Municipal
Bonds
.........................
$—
$442,380,375
$—
$
442,380,375
Short
Term
Investments
...................
—
5,200,000
—
5,200,000
Total
Investments
in
Securities
...........
$—
$447,580,375
$—
$447,580,375
Franklin
Municipal
Green
Bond
Fund
Assets:
Investments
in
Securities:
Commercial
Mortgage-Backed
Securities
......
$—
$102,150
$—
$
102,150
Municipal
Bonds
.........................
—
5,097,634
—
5,097,634
Total
Investments
in
Securities
...........
$—
$5,199,784
$—
$5,199,784
Franklin
New
Jersey
Tax-Free
Income
Fund
Assets:
Investments
in
Securities:
Municipal
Bonds
.........................
$—
$867,746,890
$—
$
867,746,890
Short
Term
Investments
...................
—
2,700,000
—
2,700,000
Total
Investments
in
Securities
...........
$—
$870,446,890
$—
$870,446,890
11.
Fair
Value
Measurements
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
(unaudited)
153
franklintempleton.com
Semiannual
Report
Abbreviations
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
FGIC
Financial
Guaranty
Insurance
Co..
FHA
Federal
Housing
Administration
FNMA
Federal
National
Mortgage
Association
FRN
Floating
Rate
Note
GNMA
Government
National
Mortgage
Association
GO
General
Obligation
LIBOR
London
Inter-Bank
Offered
Rate
LOC
Letter
of
Credit
MAC
Municipal
Assurance
Corp
NATL
National
Reinsurance
Corp.
PSF
Permanent
School
Fund
SIFMA
Securities
Industry
and
Financial
Markets
Association
SPA
Standby
Purchase
Agreement
Franklin
Tax-Free
Trust
Shareholder
Information
154
franklintempleton.com
Semiannual
Report
Liquidity
Risk
Management
Program
Each
of
the
Funds
has
adopted
and
implemented
a
written
Liquidity
Risk
Management
Program
(the
“LRMP”)
as
required
by
Rule
22e-4
under
the
Investment
Company
Act
of
1940
(the
“Liquidity
Rule”).
The
LRMP
is
designed
to
assess
and
manage
each
Fund’s
liquidity
risk,
which
is
defined
as
the
risk
that
the
Fund
could
not
meet
requests
to
redeem
shares
issued
by
the
Fund
without
significant
dilution
of
remaining
investors’
interests
in
the
Fund.
In
accordance
with
the
Liquidity
Rule,
the
LRMP
includes
policies
and
procedures
that
provide
for:
(1)
assessment,
management,
and
review
(no
less
frequently
than
annually)
of
each
Fund’s
liquidity
risk;
(2)
classification
of
each
Fund’s
portfolio
holdings
into
one
of
four
liquidity
categories
(Highly
Liquid,
Moderately
Liquid,
Less
Liquid,
and
Illiquid);
(3)
for
Funds
that
do
not
primarily
hold
assets
that
are
Highly
Liquid,
establishing
and
maintaining
a
minimum
percentage
of
the
Fund’s
net
assets
in
Highly
Liquid
investments
(called
a
“Highly
Liquid
Investment
Minimum”
or
“HLIM”);
and
(4)
prohibiting
the
Fund’s
acquisition
of
Illiquid
investments
that
would
result
in
the
Fund
holding
more
than
15%
of
its
net
assets
in
Illiquid
assets.
The
LRMP
also
requires
reporting
to
the
SEC
(on
a
non-public
basis)
and
to
the
Board
if
the
Fund’s
holdings
of
Illiquid
assets
exceed
15%
of
the
Fund’s
net
assets.
Funds
with
HLIMs
must
have
procedures
for
addressing
HLIM
shortfalls,
including
reporting
to
the
Board
and,
with
respect
to
HLIM
shortfalls
lasting
more
than
seven
consecutive
calendar
days,
reporting
to
the
Securities
and
Exchange
Commission
(“SEC”)
(on
a
non-public
basis).
The
Funds’
Board
of
Trustees
approved
the
appointment
of
the
Director
of
Liquidity
Risk
within
the
Investment
Risk
Management
Group
(the
“IRMG”)
as
the
Administrator
of
the
LRMP.
The
IRMG
maintains
the
Investment
Liquidity
Committee
(the
“ILC”)
to
provide
oversight
and
administration
of
policies
and
procedures
governing
liquidity
risk
management
for
FT
products
and
portfolios.
The
ILC
includes
representatives
from
Franklin
Templeton’s
Risk,
Trading,
Global
Compliance,
Investment
Compliance,
Investment
Operations,
Valuation
Committee
and
Product
Management
groups.
In
assessing
and
managing
each
Fund’s
liquidity
risk,
the
ILC
considers,
as
relevant,
a
variety
of
factors,
including
the
Fund’s
investment
strategy
and
the
liquidity
of
its
portfolio
investments
during
both
normal
and
reasonably
foreseeable
stressed
conditions;
its
short
and
long-term
cash
flow
projections;
and
its
cash
holdings
and
access
to
other
funding
sources
including
the
Funds’
interfund
lending
facility
and
line
of
credit.
Classification
of
the
Fund’s
portfolio
holdings
in
the
four
liquidity
categories
is
based
on
the
number
of
days
it
is
reasonably
expected
to
take
to
convert
the
investment
to
cash
(for
Highly
Liquid
and
Moderately
Liquid
holdings)
or
sell
or
dispose
of
the
investment
(for
Less
Liquid
and
Illiquid
investments),
in
current
market
conditions
without
significantly
changing
the
investment’s
market
value.
The
Fund
primarily
holds
liquid
assets
that
are
defined
under
the
Liquidity
Rule
as
"Highly
Liquid
Investments,"
and
therefore
is
not
required
to
establish
an
HLIM.
Highly
Liquid
Investments
are
defined
as
cash
and
any
investment
reasonably
expected
to
be
convertible
to
cash
in
current
market
conditions
in
three
business
days
or
less
without
the
conversion
to
cash
significantly
changing
the
market
value
of
the
investment.
At
meetings
of
the
Funds’
Board
of
Trustees
held
in
May
2020,
the
Program
Administrator
provided
a
written
report
to
the
Board
addressing
the
adequacy
and
effectiveness
of
the
program
during
the
period
December
1,
2018
to
December
31,
2019.
The
Program
Administrator
report
concluded
that
(i.)
the
LRMP,
as
adopted
and
implemented,
remains
reasonably
designed
to
assess
and
manage
each
Fund’s
liquidity
risk;
(ii.)
the
LRMP,
including
the
Highly
Liquid
Investment
Minimum
(“HLIM”)
where
applicable,
was
implemented
and
operated
effectively
to
achieve
the
goal
of
assessing
and
managing
each
Fund’s
liquidity
risk;
and
(iii.)
each
Fund
was
able
to
meet
requests
for
redemption
without
significant
dilution
of
remaining
investors’
interests
in
the
Fund.
At
the
same
time,
the
Program
Administrator
also
presented
the
Fund
Board
of
Trustees
an
update
on
liquidity
during
the
first
quarter
of
2020
in
relation
to
the
COVID-19
pandemic.
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
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Trust’s
complete
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online
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franklintempleton.com.
Alternatively,
shareholders
may
request
copies
of
the
Policies
free
of
charge
by
calling
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Proxy
Group
collect
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(954)
527-
7678
or
by
sending
a
written
request
to:
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Templeton
Companies,
LLC,
300
S.E.
2nd
Street,
Fort
Lauderdale,
FL
33301,
Attention:
Proxy
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and
posted
on
the
U.S.
Securities
and
Exchange
Commission’s
website
at
sec.gov
and
reflect
the
most
recent
12-month
period
ended
June
30.
Quarterly
Statement
of
Investments
The
Trust
files
a
complete
statement
of
investments
with
the
U.S.
Securities
and
Exchange
Commission
for
the
first
and
third
quarters
for
each
fiscal
year
as
an
exhibit
to
its
report
on
Form
N-PORT.
Shareholders
may
view
the
filed
Form
N-PORT
by
visiting
the
Commission’s
website
at
sec.
gov.
The
filed
form
may
also
be
viewed
and
copied
at
the
Commission’s
Public
Reference
Room
in
Washington,
DC.
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regarding
the
operations
of
the
Public
Reference
Room
may
be
obtained
by
calling
(800)
SEC-0330.
Householding
of
Reports
and
Prospectuses
You
will
receive
each
Fund’s
financial
reports
every
six
months
as
well
as
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
and
summary
prospectus.
This
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Templeton
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distribution
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Investors
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fund’s
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goals,
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charges
and
expenses
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A
prospectus
contains
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and
other
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please
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August
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shareholder
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will
no
longer
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by
mail,
unless
you
specifically
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the
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or
your
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the
reports
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and
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report
1
SHAREHOLDER
LETTER
Dear
Shareholder:
During
the
six
months
ended
August
31,
2020,
the
U.S.
economy
contracted
in
2020’s
first
and
second
quarters
in
response
to
the
novel
coronavirus
(COVID-19)
pandemic.
The
U.S.
Federal
Reserve
(Fed),
having
lowered
the
federal
funds
rate
three
times
in
2019
amid
global
trade
tensions,
held
the
rate
unchanged
through
February
2020.
However,
given
larger
economic
risks
posed
by
COVID-19,
the
Fed
lowered
its
key
rate
by
0.50%
on
March
3
and
further
by
1.00%
on
March
15,
decreasing
the
rate
during
the
period
from
1.75%
to
0.25%.
In
its
efforts
to
support
U.S.
economic
activity,
the
Fed
also
announced
broad
quantitative
easing
measures
to
support
credit
markets.
During
the
six-month
period,
municipal
bonds
delivered
marginally
positive
total
returns
as
investors
were
attracted
to
tax-free
income
in
a
declining
interest-rate
environment.
Factors
contributing
to
this
positive
investment
environment
for
municipals
included
relatively
low
inflation,
interest-
rate
declines
and
recent
actions
by
the
Fed
to
support
the
municipal
bond
market.
On
July
1,
2020,
we
appointed
Ben
Barber
as
senior
vice
president
and
director
of
our
municipal
bond
department,
and
we
are
pleased
that
he
has
rejoined
Franklin.
Ben
most
recently
served
as
co-head
of
municipal
bonds
at
Goldman
Sachs
Asset
Management.
Ben
started
his
career
of
over
28
years
of
municipal
bond
investing
at
Franklin
in
1991,
working
with
several
current
investment
team
members
through
1999,
when
he
joined
Goldman
Sachs.
Franklin
Tax-Free
Trust’s
semiannual
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
experts.
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,
as
do
mutual
fund
share
prices.
As
always,
we
recommend
investors
consult
their
financial
advisors
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
advisor
when
you
have
questions
about
your
Franklin
tax-free
investment.
Sincerely,
Rupert
H.
Johnson,
Jr.
Chairman
Franklin
Tax-Free
Trust
Ben
Barber
Senior
Vice
President
Director
of
Municipal
Bonds
This
letter
reflects
our
analysis
and
opinions
as
of
August
31,
2020,
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.
franklintempleton.com
Semiannual
Report
2
Contents
Semiannual
Report
Municipal
Bond
Market
Overview
...................
3
Investment
Strategy
and
Manager’s
Discussion
.......
4
Franklin
Alabama
Tax-Free
Income
Fund
............
5
Franklin
Florida
Tax-Free
Income
Fund
..............
10
Franklin
Georgia
Tax-Free
Income
Fund
.............
15
Franklin
Kentucky
Tax-Free
Income
Fund
............
20
Franklin
Louisiana
Tax-Free
Income
Fund
............
25
Franklin
Maryland
Tax-Free
Income
Fund
............
30
Franklin
Missouri
Tax-Free
Income
Fund
.............
35
Franklin
North
Carolina
Tax-Free
Income
Fund
........
40
Franklin
Virginia
Tax-Free
Income
Fund
..............
45
Financial
Highlights
and
Statement
of
Investments
....
50
Financial
Statements
.............................
125
Notes
to
Financial
Statements
.....................
139
Shareholder
Information
..........................
160
Visit
franklintempleton.com
for
fund
updates,
to
access
your
account,
or
to
find
helpful
financial
planning
tools.
3
franklintempleton.com
Semiannual
Report
SEMIANNUAL
REPORT
Municipal
Bond
Market
Overview
Beginning
in
March
2020,
the
global
spread
of
the
novel
coronavirus
and
the
drastic
measures
individual
countries
implemented
to
limit
infections
shocked
both
equity
and
fixed
income
markets.
Investors
sought
perceived
safe
havens,
driving
U.S.
Treasury
(UST)
yields
lower
and
causing
a
surge
in
volatility.
In
the
municipal
bond
market,
sellers
significantly
outnumbered
buyers,
resulting
in
market
dislocations.
March
2020
saw
outflows
of
$42
billion
from
municipal
bond
funds,
reversing
half
of
the
inflows
seen
throughout
2019.
Ratios
of
municipal
bond
yields
versus
duration-matched
USTs
cheapened
across
all
maturity
buckets,
surpassing
levels
reached
during
the
global
financial
crisis.
Municipal
bond
issues
closely
related
to
the
impact
of
the
virus,
including
states
like
New
York
and
New
Jersey
and
sectors
like
transportation,
retreated
more
than
other
parts
of
the
market.
In
March,
the
U.S.
Federal
Reserve
announced
it
would
begin
purchasing
municipal
bonds
as
needed
to
support
market
stability;
however,
there
were
still
significant
dislocations
within
the
secondary
bond
market
at
month-end,
and
new
issuance
had
all
but
stopped.
Moving
into
April
and
continuing
through
August,
municipal
bond
market
technical
conditions
improved
as
funds
flowed
into
the
market
and
were
met
with
negative
net
supply
of
tax-exempt
bonds.
Ratios
of
municipal
bonds
versus
USTs
tightened
but
remained
significantly
wider
than
at
the
beginning
of
2020.
Throughout
the
sector,
municipal
issuers
projected
large
deficits
reaching
into
2021
as
revenues
from
tax
receipts
and
usage
fees
fall
while
costs
of
services
increase.
The
Investment
Company
Institute
(ICI)
reported
net
inflows
of
approximately
$11
billion
into
municipal
bond
mutual
funds
in
August
2020.
Since
March,
over
half
of
the
record
outflows
in
March,
$42
billion,
had
returned
to
the
sector.
For
the
six-month
period,
municipal
bond
mutual
funds
had
approximately
$9
billion
of
net
outflows,
according
to
the
ICI.
For
the
six-month
period,
investment-grade
municipal
bonds,
as
measured
by
the
Bloomberg
Barclays
Municipal
Bond
Index,
posted
a
+0.19%
total
return,
while
USTs,
as
measured
by
the
Bloomberg
Barclays
U.S.
Treasury
Index,
posted
a
+3.42%
total
return,
and
investment-grade
corporate
bonds,
as
measured
by
the
Bloomberg
Barclays
U.S.
Corporate
Bond
Index,
posted
a
+3.11%
total
return.
1
All
three
of
these
fixed
income
sectors
underperformed
U.S.
stocks,
as
measured
by
the
Standard
&
Poor’s
®
500
Index,
which
posted
a
+19.63%
total
return
for
the
period.
1
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
August
31,
2020,
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.
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
Semiannual
Report
Investment
Strategy
and
Manager’s
Discussion
Investment
Strategy
We
use
a
consistent,
disciplined
strategy
with
the
objective
of
maximizing
tax-free
income
and
capital
preservation
by
focusing
on
credit
selection.
We
seek
to
maintain
exposure
to
securities
that
produce
high
tax-free
income,
while
balancing
risk
and
return
within
each
Fund’s
range
of
allowable
investments.
We
do
not
purchase
high-yield
securities
in
our
investment-grade
funds,
however
if
a
security
is
downgraded
we
are
not
required
to
sell
it.
Our
security
selection
process
includes
purchasing
securities
that
we
believe
are
undervalued
in
the
market
and
which
have
met
our
credit
selection
criteria.
We
do
not
use
leverage
or
derivatives,
which
could
add
volatility
and
contribute
to
underperformance
in
adverse
markets.
Manager’s
Discussion
Due
to
the
positive
sloping
municipal
yield
curve,
we
found
value
in
higher
quality
securities
in
the
15–30
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
August
31,
2020,
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
Semiannual
Report
Franklin
Alabama
Tax-Free
Income
Fund
This
semiannual
report
for
Franklin
Alabama
Tax-Free
Income
Fund
covers
the
period
ended
August
31,
2020
.
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
to
provide
as
high
a
level
of
income
exempt
from
federal
and
Alabama
personal
income
taxes
as
is
consistent
with
prudent
investment
management
and
preservation
of
capital
by
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
29,
2020,
to
$11.29
on
August
31,
2020.
The
Fund’s
Class
A
shares
paid
dividends
totaling
14.6864
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
2.53%,
based
on
an
annualization
of
August’s
2.4743
cents
per
share
monthly
dividend
and
the
maximum
offering
price
of
$11.73
on
August
31,
2020.
An
investor
in
the
2020
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
4.67%
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
six
months
under
review,
Alabama’s
economy
contracted
as
a
result
of
the
COVID-19
pandemic.
The
state’s
higher-than-average
employment
concentration
in
manufacturing
was
already
vulnerable
by
the
start
of
the
2020
due
to
foreign
competition
and
the
international
trade
environment.
Its
unemployment
rate
rose
from
2.7%
in
February
2020
to
5.6%
at
period-end,
substantially
below
the
nation's
8.4%
average.
3
Alabama’s
fiscal
year
(FY)
2021
budget
which
takes
effect
on
October
1,
2020,
reflects
an
increase
over
the
current
year
and
aims
to
continue
to
fund
core
services,
such
as
health
care
and
education.
The
state’s
net
tax
supported
debt
was
$822
per
capita
and
1.9%
Credit
Quality
Composition
*
8/31/20
Ratings
%
of
Total
Investments
AAA
7.79%
AA
69.73%
A
6.35%
BBB
2.69%
Refunded
13.44%
*Securities,
except
for
those
labeled
Not
Rated,
are
assigned
ratings
by
one
or
more
Nationally
Recognized
Statistical
Credit
Rating
Organizations
(NRSROs),
such
as
Standard
&
Poor’s,
Moody’s
and
Fitch,
that
can
be
considered
by
the
investment
man-
ager
as
part
of
its
independent
securities
analysis.
When
ratings
from
multiple
agen-
cies
are
available,
the
highest
is
used,
consistent
with
the
portfolio
investment
process.
Ratings
reflect
an
NRSRO’s
opinion
of
an
issuer’s
creditworthiness
and
typically
range
from
AAA
(highest)
to
D
(lowest).
The
Below
Investment
Grade
category
consists
of
bonds
rated
below
BBB-.
The
Refunded
category
generally
consists
of
refunded
bonds
secured
by
U.S.
government
or
other
high-quality
securities
and
not
rerated
by
an
NRSRO.
The
Not
Rated
category
consists
of
ratable
securities
that
have
not
been
rated
by
an
NRSRO.
Cash
and
equivalents
are
excluded
from
this
composition.
Portfolio
Composition
8/31/20
%
of
Total
Investments
*
Utilities
24.15%
Refunded**
22.37%
Higher
Education
16.38%
Tax-Supported
13.29%
General
Obligation
9.09%
Hospital
&
Health
Care
7.79%
Transportation
5.63%
Corporate-Backed
1.30%
*
Does
not
include
cash
and
cash
equivalents.
**
Includes
all
refunded
bonds;
the
percentage
may
differ
from
that
in
the
Credit
Quality
Composition.
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
estimated
tax-basis
net
investment
income
distributions
for
the
period
shown.
A
portion
or
all
of
the
distribution
may
be
reclassified
as
return
of
capital
or
short-term
or
long-term
capital
gains
once
final
tax
designations
are
known.
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:
Bureau
of
Labor
Statistics.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Statement
of
Investments
(SOI).
The
SOI
begins
on
page
55
.
Franklin
Alabama
Tax-Free
Income
Fund
6
franklintempleton.com
Semiannual
Report
of
personal
income,
below
the
$1,071
and
2.0%
national
medians,
respectively.
4
The
independent
credit
rating
agency
Standard
&
Poor’s
(S&P)
maintained
the
state’s
general
obligation
bonds’
AA
rating
with
a
stable
outlook.
5
This
rating
reflected
S&P’s
view
of
Alabama’s
strong
financial
controls,
its
recently
improved
financial
position
and
the
dedicated
revenue
streams
to
support
the
state’s
capital
projects
and
debt
service.
Headwinds
in
S&P’s
view
include
the
state’s
overall
restrictive
taxing
structure,
its
modest
population
growth
and
the
historically
slow
growth
in
its
gross
state
product
relative
to
other
states.
Manager’s
Discussion
We
used
various
investment
strategies
during
the
six
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
Alabama
Tax-Free
Income
Fund.
We
believe
our
conservative,
buy-and-hold
investment
strategy
can
help
us
achieve
high,
current,
tax-free
income
for
shareholders.
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
August
31,
2020,
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.
4.
Source:
Moody’s
Investors
Service,
State
government
–
U.S.:
Medians
–
State
debt
declined
in
2019,
but
likely
to
grow
in
coming
years
,
5/12/20.
5.
This
does
not
indicate
S&P’s
rating
of
the
Fund.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Performance
Summary
as
of
August
31,
2020
Franklin
Alabama
Tax-Free
Income
Fund
7
franklintempleton.com
Semiannual
Report
The
performance
tables
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
8/31/20
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
3.75%
and
the
minimum
is
0%.
Class
A
:
3.75%
maximum
initial
sales
charge;
Advisor
Class:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Share
Class
Cumulative
Total
Return
1
Average
Annual
Total
Return
2
–
A
3,4
6-Month
+0.34%
-3.42%
1-Year
+2.93%
-0.93%
5-Year
+17.18%
+2.44%
10-Year
+40.32%
+3.05%
Advisor
5
6-Month
+0.47%
+0.47%
1-Year
+3.19%
+3.19%
5-Year
+17.91%
+3.35%
10-Year
+41.13%
+3.50%
Share
Class
Distribution
Rate
6
Taxable
Equivalent
Distribution
Rate
7
30-Day
Standardized
Yield
8
Taxable
Equivalent
30-Day
Standardized
Yield
7
A
2.53%
4.67%
1.26%
2.32%
Advisor
2.89%
5.33%
1.57%
2.90%
See
page
8
for
Performance
Summary
footnotes.
Franklin
Alabama
Tax-Free
Income
Fund
Performance
Summary
8
franklintempleton.com
Semiannual
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.
Unexpected
events
and
their
aftermaths,
such
as
the
spread
of
deadly
diseases;
natural,
environmental
or
man-made
disasters;
financial,
political
or
social
disruptions;
terrorism
and
war;
and
other
tragedies
or
catastrophes,
can
cause
investor
fear
and
panic,
which
can
adversely
affect
the
economies
of
many
companies,
sectors,
nations,
regions
and
the
market
in
general,
in
ways
that
cannot
necessarily
be
foreseen.
The
Fund’s
prospectus
also
includes
a
description
of
the
main
investment
risks.
1.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
2.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
3.
Effective
9/10/18,
Class
A
shares
closed
to
new
investors,
were
renamed
Class
A1
shares,
and
a
new
Class
A
share
with
a
different
expense
structure
became
available.
Class
A
performance
shown
has
been
calculated
as
follows:
(a)
for
periods
prior
to
9/10/18,
a
restated
figure
is
used
based
on
the
Fund’s
Class
A1
performance
that
includes
any
Rule
12b-1
rate
differential
that
exists
between
Class
A1
and
Class
A;
and
(b)
for
periods
after
9/10/18,
actual
Class
A
performance
is
used,
reflecting
all
charges
and
fees
applicable
to
that
class.
4.
Prior
to
3/1/19,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
4.25%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total
returns
(with
sales
charges)
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
3.75%.
5.
Effective
9/15/16,
the
Fund
began
offering
Advisor
Class
shares,
which
do
not
have
sales
charges
or
a
Rule
12b-1
plan.
Performance
quotations
for
this
class
reflect
the
following
methods
of
calculation:
(a)
For
periods
prior
to
9/15/16,
a
restated
figure
is
used
based
upon
the
Fund’s
Class
A
performance,
excluding
the
effect
of
Class
A’s
maximum
initial
sales
charge,
but
reflecting
the
effect
of
the
Class
A
Rule
12b-1
fees;
and
(b)
for
periods
after
9/15/16,
actual
Advisor
Class
performance
is
used
reflecting
all
charges
and
fees
applicable
to
that
class.
6.
Distribution
rate
is
based
on
an
annualization
of
the
respective
class’s
August
dividend
and
the
maximum
offering
price
(NAV
for
Advisor
Class)
per
share
on
8/31/20.
7.
Taxable
equivalent
distribution
rate
and
yield
assume
the
published
rates
as
of
6/18/20
for
the
maximum
combined
effective
federal
and
Alabama
personal
income
tax
rate
of
45.80%,
based
on
the
federal
income
tax
rate
of
37.00%
plus
3.80%
Medicare
tax.
8.
The
Fund’s
30-day
standardized
yield
is
calculated
over
a
trailing
30-day
period
using
the
yield
to
maturity
on
bonds
and/or
the
dividends
accrued
on
stocks.
It
may
not
equal
the
Fund’s
actual
income
distribution
rate,
which
reflects
the
Fund’s
past
dividends
paid
to
shareholders.
9.
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
(3/1/20–8/31/20)
Share
Class
Net
Investment
Income
A
$0.146864
A1
$0.155263
C
$0.124206
R6
$0.162640
Advisor
$0.160878
Total
Annual
Operating
Expenses
9
Share
Class
A
0.91%
Advisor
0.66%
Your
Fund’s
Expenses
Franklin
Alabama
Tax-Free
Income
Fund
9
franklintempleton.com
Semiannual
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
184/365
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
3/1/20
Ending
Account
Value
8/31/20
Expenses
Paid
During
Period
3/1/20–8/31/20
1,2
Ending
Account
Value
8/31/20
Expenses
Paid
During
Period
3/1/20–8/31/20
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$1,003.40
$4.58
$1,020.64
$4.62
0.91%
A1
$1,000
$1,004.20
$3.84
$1,021.37
$3.87
0.76%
C
$1,000
$1,001.40
$6.59
$1,018.62
$6.65
1.31%
R6
$1,000
$1,004.80
$3.17
$1,022.05
$3.20
0.63%
Advisor
$1,000
$1,004.70
$3.33
$1,021.88
$3.36
0.66%
10
franklintempleton.com
Semiannual
Report
Franklin
Florida
Tax-Free
Income
Fund
This
semiannual
report
for
Franklin
Florida
Tax-Free
Income
Fund
covers
the
period
ended
August
31,
2020
.
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
to
provide
as
high
a
level
of
income
exempt
from
federal
income
taxes
and
any
Florida
personal
income
taxes
as
is
consistent
with
prudent
investment
management
and
preservation
of
capital
by
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
$10.83
on
February
29,
2020,
to
$10.66
on
August
31,
2020.
The
Fund’s
Class
A
shares
paid
dividends
totaling
16.2158
cents
per
share
for
the
same
period.
2
The
Performance
Summary
beginning
on
page
12
shows
that
at
the
end
of
this
reporting
period
the
Fund’s
Class
A
shares’
distribution
rate
was
2.85%,
based
on
an
annualization
of
August’s
2.6307
cents
per
share
monthly
dividend
and
the
maximum
offering
price
of
$11.08
on
August
31,
2020.
An
investor
in
the
2020
maximum
federal
tax
bracket
of
37.00%
(plus
3.80%
Medicare
tax)
would
need
to
earn
a
distribution
rate
of
4.82%
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
six
months
under
review,
Florida’s
economy
contracted,
which
reflected
exposure
to
sectors
affected
by
the
COVID-19
pandemic,
such
as
leisure,
tourism
and
retail.
The
state’s
unemployment
rate
rose
from
2.8%
in
February
2020
to
7.4%
at
period-end,
below
the
nation’s
8.4%
average.
3
Florida
is
highly
reliant
on
sales
taxes,
which
comprise
the
bulk
of
general
revenues,
but
its
debt
and
pension
burdens
are
some
of
the
lowest
fixed
costs
relative
to
other
states.
This
will
provide
budget
flexibility
in
the
current
fiscal
year,
although
the
state’s
reliance
on
tourism
and
sales
taxes
exposes
its
finances
to
prolonged
Credit
Quality
Composition
*
8/31/20
Ratings
%
of
Total
Investments
AAA
11.42%
AA
32.73%
A
36.77%
BBB
5.97%
Below
Investment
Grade
1.34%
Refunded
11.35%
Not
Rated
0.42%
*Securities,
except
for
those
labeled
Not
Rated,
are
assigned
ratings
by
one
or
more
Nationally
Recognized
Statistical
Credit
Rating
Organizations
(NRSROs),
such
as
Standard
&
Poor’s,
Moody’s
and
Fitch,
that
can
be
considered
by
the
investment
man-
ager
as
part
of
its
independent
securities
analysis.
When
ratings
from
multiple
agen-
cies
are
available,
the
highest
is
used,
consistent
with
the
portfolio
investment
process.
Ratings
reflect
an
NRSRO’s
opinion
of
an
issuer’s
creditworthiness
and
typically
range
from
AAA
(highest)
to
D
(lowest).
The
Below
Investment
Grade
category
consists
of
bonds
rated
below
BBB-.
The
Refunded
category
generally
consists
of
refunded
bonds
secured
by
U.S.
government
or
other
high-quality
securities
and
not
rerated
by
an
NRSRO.
The
Not
Rated
category
consists
of
ratable
securities
that
have
not
been
rated
by
an
NRSRO.
Cash
and
equivalents
are
excluded
from
this
composition.
Portfolio
Composition
8/31/20
%
of
Total
Investments
*
Hospital
&
Health
Care
24.03%
Transportation
21.63%
Utilities
20.74%
Refunded**
12.80%
General
Obligation
7.83%
Tax-Supported
5.52%
Higher
Education
2.39%
Subject
to
Government
Appropriations
1.88%
Other
Revenue
1.65%
Housing
1.53%
*
Does
not
include
cash
and
cash
equivalents.
**
Includes
all
refunded
bonds;
the
percentage
may
differ
from
that
in
the
Credit
Quality
Composition.
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
estimated
tax-basis
net
investment
income
distributions
for
the
period
shown.
A
portion
or
all
of
the
distribution
may
be
reclassified
as
return
of
capital
or
short-term
or
long-term
capital
gains
once
final
tax
designations
are
known.
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:
Bureau
of
Labor
Statistics.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Statement
of
Investments
(SOI).
The
SOI
begins
on
page
62
.
Franklin
Florida
Tax-Free
Income
Fund
11
franklintempleton.com
Semiannual
Report
recovery
from
the
pandemic.
Florida’s
net
tax-supported
debt
was
$780
per
capita
and
1.5%
of
personal
income,
below
the
$1,071
and
2.0%
national
medians,
respectively.
4
The
independent
credit
rating
agency
Moody’s
Investor
Services
(Moody’s)
maintained
Florida’s
general
obligation
bonds’
Aaa
rating
with
a
stable
outlook.
5
The
rating
reflected
Moody’s
view
of
the
state’s
economic
growth
in
recent
years
which
has
outpaced
the
nation,
its
strong
population
growth
and
significant
reserve
levels,
and
a
history
of
above-average
vulnerability
to
economic
cycles
and
elevated
exposure
to
storm
damage.
The
outlook
also
reflected
Moody’s
expectations
that
Florida’s
sound
fiscal
management
will
continue.
Manager’s
Discussion
We
used
various
investment
strategies
during
the
six
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
Florida
Tax-Free
Income
Fund.
We
believe
our
conservative,
buy-
and-hold
investment
strategy
can
help
us
achieve
high,
current,
tax-free
income
for
shareholders.
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
August
31,
2020,
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.
4.
Source:
Moody’s
Investors
Service,
State
government
–
U.S.:
Medians
–
State
debt
declined
in
2019,
but
likely
to
grow
in
coming
years
,
5/12/20.
5.
This
does
not
indicate
Moody’s
rating
of
the
Fund.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Performance
Summary
as
of
August
31,
2020
Franklin
Florida
Tax-Free
Income
Fund
12
franklintempleton.com
Semiannual
Report
The
performance
tables
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
8/31/20
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
3.75%
and
the
minimum
is
0%.
Class
A
:
3.75%
maximum
initial
sales
charge;
Advisor
Class
:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Share
Class
Cumulative
Total
Return
1
Average
Annual
Total
Return
2
–
A
3,4
6-Month
-0.05%
-3.79%
1-Year
+1.96%
-1.86%
5-Year
+15.60%
+2.16%
10-Year
+35.90%
+2.72%
Advisor
5
6-Month
+0.08%
+0.08%
1-Year
+2.22%
+2.22%
5-Year
+16.62%
+3.12%
10-Year
+37.01%
+3.20%
Share
Class
Distribution
Rate
6
Taxable
Equivalent
Distribution
Rate
7
30-Day
Standardized
Yield
8
Taxable
Equivalent
30-Day
Standardized
Yield
7
A
2.85%
4.82%
1.30%
2.20%
Advisor
3.21%
5.43%
1.59%
2.69%
See
page
13
for
Performance
Summary
footnotes.
Franklin
Florida
Tax-Free
Income
Fund
Performance
Summary
13
franklintempleton.com
Semiannual
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.
Puerto
Rico
municipal
bonds
have
been
impacted
by
recent
adverse
economic
and
market
changes,
which
may
cause
the
Fund’s
share
price
to
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.
Unexpected
events
and
their
aftermaths,
such
as
the
spread
of
deadly
diseases;
natural,
environmental
or
man-made
disasters;
financial,
political
or
social
disruptions;
terrorism
and
war;
and
other
tragedies
or
catastrophes,
can
cause
investor
fear
and
panic,
which
can
adversely
affect
the
econo-
mies
of
many
companies,
sectors,
nations,
regions
and
the
market
in
general,
in
ways
that
cannot
necessarily
be
foreseen.
The
Fund’s
prospectus
also
includes
a
description
of
the
main
investment
risks.
1.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
2.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
3.
Effective
9/10/18,
Class
A
shares
closed
to
new
investors,
were
renamed
Class
A1
shares,
and
a
new
Class
A
share
with
a
different
expense
structure
became
available.
Class
A
performance
shown
has
been
calculated
as
follows:
(a)
for
periods
prior
to
9/10/18,
a
restated
figure
is
used
based
on
the
Fund’s
Class
A1
performance
that
includes
any
Rule
12b-1
rate
differential
that
exists
between
Class
A1
and
Class
A;
and
(b)
for
periods
after
9/10/18,
actual
Class
A
performance
is
used,
reflecting
all
charges
and
fees
applicable
to
that
class.
4.
Prior
to
3/1/19,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
4.25%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total
returns
(with
sales
charges)
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
3.75%.
5.
Effective
9/15/16,
the
Fund
began
offering
Advisor
Class
shares,
which
do
not
have
sales
charges
or
a
Rule
12b-1
plan.
Performance
quotations
for
this
class
reflect
the
following
methods
of
calculation:
(a)
For
periods
prior
to
9/15/16,
a
restated
figure
is
used
based
upon
the
Fund’s
Class
A
performance,
excluding
the
effect
of
Class
A’s
maximum
initial
sales
charge,
but
reflecting
the
effect
of
the
Class
A
Rule
12b-1
fees;
and
(b)
for
periods
after
9/15/16,
actual
Advisor
Class
performance
is
used
reflecting
all
charges
and
fees
applicable
to
that
class.
6.
Distribution
rate
is
based
on
an
annualization
of
the
respective
class’s
August
dividend
and
the
maximum
offering
price
(NAV
for
Advisor
Class)
per
share
on
8/31/20.
7.
Taxable
equivalent
distribution
rate
and
yield
assume
the
2020
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.
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
(3/1/20–8/31/20)
Share
Class
Net
Investment
Income
A
$0.162158
A1
$0.170173
C
$0.141199
R6
$0.177557
Advisor
$0.175621
Total
Annual
Operating
Expenses
9
Share
Class
A
0.85%
Advisor
0.60%
Your
Fund’s
Expenses
Franklin
Florida
Tax-Free
Income
Fund
14
franklintempleton.com
Semiannual
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
184/365
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
3/1/20
Ending
Account
Value
8/31/20
Expenses
Paid
During
Period
3/1/20–8/31/20
1,2
Ending
Account
Value
8/31/20
Expenses
Paid
During
Period
3/1/20–8/31/20
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$999.50
$4.25
$1,020.95
$4.30
0.84%
A1
$1,000
$1,000.30
$3.51
$1,021.70
$3.55
0.70%
C
$1,000
$997.60
$6.24
$1,018.96
$6.31
1.24%
R6
$1,000
$1,001.00
$2.81
$1,022.39
$2.84
0.56%
Advisor
$1,000
$1,000.80
$3.00
$1,022.21
$3.03
0.60%
15
franklintempleton.com
Semiannual
Report
Franklin
Georgia
Tax-Free
Income
Fund
This
semiannual
report
for
Franklin
Georgia
Tax-Free
Income
Fund
covers
the
period
ended
August
31,
2020
.
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
to
provide
as
high
a
level
of
income
exempt
from
federal
and
Georgia
personal
income
taxes
as
is
consistent
with
prudent
investment
management
and
preservation
of
capital
by
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
$12.19
on
February
29,
2020,
to
$11.98
on
August
31,
2020.
The
Fund’s
Class
A
shares
paid
dividends
totaling
15.3390
cents
per
share
for
the
same
period.
2
The
Performance
Summary
beginning
on
page
17
shows
that
at
the
end
of
this
reporting
period
the
Fund’s
Class
A
shares’
distribution
rate
was
2.46%,
based
on
an
annualization
of
August’s
2.5504
cents
per
share
monthly
dividend
and
the
maximum
offering
price
of
$12.45
on
August
31,
2020.
An
investor
in
the
2020
maximum
combined
effective
federal
and
Georgia
personal
income
tax
bracket
of
46.30%
(including
3.80%
Medicare
tax)
would
need
to
earn
a
distribution
rate
of
4.58%
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
six
months
under
review,
Georgia’s
highly
diversified
economy
slowed
considerably
due
to
the
COVID-19
pandemic.
Its
economy
began
to
gradually
reopen
in
April
but
is
expected
to
remain
weak
at
least
until
the
end
of
2020.
Georgia’s
unemployment
rate
rose
from
3.1%
in
February
2020
to
5.6%
at
period-end,
significantly
below
the
nation’s
8.4%
average.
3
A
moderate
budget
gap
was
closed
for
fiscal
year
(FY)
2020
by
using
reserves
estimated
to
remain
adequate
to
strong
in
FY
2021.
The
Credit
Quality
Composition
*
8/31/20
Ratings
%
of
Total
Investments
AAA
9.37%
AA
62.62%
A
17.86%
BBB
3.96%
Below
Investment
Grade
0.73%
Refunded
4.82%
Not
Rated
0.64%
*Securities,
except
for
those
labeled
Not
Rated,
are
assigned
ratings
by
one
or
more
Nationally
Recognized
Statistical
Credit
Rating
Organizations
(NRSROs),
such
as
Standard
&
Poor’s,
Moody’s
and
Fitch,
that
can
be
considered
by
the
investment
man-
ager
as
part
of
its
independent
securities
analysis.
When
ratings
from
multiple
agen-
cies
are
available,
the
highest
is
used,
consistent
with
the
portfolio
investment
process.
Ratings
reflect
an
NRSRO’s
opinion
of
an
issuer’s
creditworthiness
and
typically
range
from
AAA
(highest)
to
D
(lowest).
The
Below
Investment
Grade
category
consists
of
bonds
rated
below
BBB-.
The
Refunded
category
generally
consists
of
refunded
bonds
secured
by
U.S.
government
or
other
high-quality
securities
and
not
rerated
by
an
NRSRO.
The
Not
Rated
category
consists
of
ratable
securities
that
have
not
been
rated
by
an
NRSRO.
Cash
and
equivalents
are
excluded
from
this
composition.
Portfolio
Composition
8/31/20
%
of
Total
Investments
*
Utilities
23.83%
Hospital
&
Health
Care
20.83%
General
Obligation
16.43%
Subject
to
Government
Appropriations
12.78%
Tax-Supported
6.55%
Refunded**
5.07%
Housing
5.03%
Higher
Education
4.92%
Transportation
4.56%
*
Does
not
include
cash
and
cash
equivalents.
**
Includes
all
refunded
bonds;
the
percentage
may
differ
from
that
in
the
Credit
Quality
Composition.
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
estimated
tax-basis
net
investment
income
distributions
for
the
period
shown.
A
portion
or
all
of
the
distribution
may
be
reclassified
as
return
of
capital
or
short-term
or
long-term
capital
gains
once
final
tax
designations
are
known.
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:
Bureau
of
Labor
Statistics.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Statement
of
Investments
(SOI).
The
SOI
begins
on
page
71
.
Franklin
Georgia
Tax-Free
Income
Fund
16
franklintempleton.com
Semiannual
Report
state’s
general
fund
revenue
in
FY
2020
was
impacted
by
the
substantial
decline
in
personal
income
taxes,
the
largest
source
of
fund
revenue.
These
developments
necessitated
a
10%
budget
cut
for
FY
2021.
Georgia’s
net
tax-supported
debt
was
$971
per
capita
and
2.0%
of
personal
income,
compared
with
the
$1,071
and
2.0%
national
medians,
respectively.
4
During
the
period
under
review,
independent
credit
rating
agency
Standard
&
Poor’s
(S&P)
maintained
the
state’s
general
obligation
bonds’
AAA
rating
with
a
stable
outlook.
5
The
rating
reflected
S&P’s
view
of
Georgia’s
strong
budget
management
framework,
increases
in
its
rainy
day
fund
to
provide
flexibility
and
the
proactive
management
of
long-term
liabilities
through
rapid
debt
amortization,
and
full
funding
of
the
state’s
portion
of
pension
contributions.
Manager’s
Discussion
We
used
various
investment
strategies
during
the
six
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
believe
our
conservative,
buy-and-hold
investment
strategy
can
help
us
achieve
high,
current,
tax-free
income
for
shareholders.
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
August
31,
2020,
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.
4.
Source:
Moody’s
Investors
Service,
State
government
–
U.S.:
Medians
–
State
debt
declined
in
2019,
but
likely
to
grow
in
coming
years
,
5/12/20.
5.
This
does
not
indicate
S&P’s
rating
of
the
Fund.
See
www.franklintempletondatasources.com
for
additional
data
provider
information
Performance
Summary
as
of
August
31,
2020
Franklin
Georgia
Tax-Free
Income
Fund
17
franklintempleton.com
Semiannual
Report
The
performance
tables
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
8/31/20
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
3.75%
and
the
minimum
is
0%.
Class
A
:
3.75%
maximum
initial
sales
charge;
Advisor
Class:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Share
Class
Cumulative
Total
Return
1
Average
Annual
Total
Return
2
–
A
3,4
6-Month
-0.44%
-4.18%
1-Year
+2.20%
-1.63%
5-Year
+15.11%
+2.07%
10-Year
+38.31%
+2.90%
Advisor
5
6-Month
-0.40%
-0.40%
1-Year
+2.37%
+2.37%
5-Year
+15.93%
+3.00%
10-Year
+39.19%
+3.36%
Share
Class
Distribution
Rate
6
Taxable
Equivalent
Distribution
Rate
7
30-Day
Standardized
Yield
8
Taxable
Equivalent
30-Day
Standardized
Yield
7
A
2.46%
4.58%
0.96%
1.79%
Advisor
2.81%
5.23%
1.25%
2.33%
See
page
18
for
Performance
Summary
footnotes.
Franklin
Georgia
Tax-Free
Income
Fund
Performance
Summary
18
franklintempleton.com
Semiannual
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.
Puerto
Rico
municipal
bonds
have
been
impacted
by
recent
adverse
economic
and
market
changes,
which
may
cause
the
Fund’s
share
price
to
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.
Unexpected
events
and
their
aftermaths,
such
as
the
spread
of
deadly
diseases;
natural,
environmental
or
man-made
disasters;
financial,
political
or
social
disruptions;
terrorism
and
war;
and
other
tragedies
or
catastrophes,
can
cause
investor
fear
and
panic,
which
can
adversely
affect
the
econo-
mies
of
many
companies,
sectors,
nations,
regions
and
the
market
in
general,
in
ways
that
cannot
necessarily
be
foreseen.
The
Fund’s
prospectus
also
includes
a
description
of
the
main
investment
risks.
1.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
2.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
3.
Effective
9/10/18,
Class
A
shares
closed
to
new
investors,
were
renamed
Class
A1
shares,
and
a
new
Class
A
share
with
a
different
expense
structure
became
available.
Class
A
performance
shown
has
been
calculated
as
follows:
(a)
for
periods
prior
to
9/10/18,
a
restated
figure
is
used
based
on
the
Fund’s
Class
A1
performance
that
includes
any
Rule
12b-1
rate
differential
that
exists
between
Class
A1
and
Class
A;
and
(b)
for
periods
after
9/10/18,
actual
Class
A
performance
is
used,
reflecting
all
charges
and
fees
applicable
to
that
class.
4.
Prior
to
3/1/19,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
4.25%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total
returns
(with
sales
charges)
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
3.75%.
5.
Effective
9/15/16,
the
Fund
began
offering
Advisor
Class
shares,
which
do
not
have
sales
charges
or
a
Rule
12b-1
plan.
Performance
quotations
for
this
class
reflect
the
following
methods
of
calculation:
(a)
For
periods
prior
to
9/15/16,
a
restated
figure
is
used
based
upon
the
Fund’s
Class
A
performance,
excluding
the
effect
of
Class
A’s
maximum
initial
sales
charge,
but
reflecting
the
effect
of
the
Class
A
Rule
12b-1
fees;
and
(b)
for
periods
after
9/15/16,
actual
Advisor
Class
performance
is
used
reflecting
all
charges
and
fees
applicable
to
that
class.
6.
Distribution
rate
is
based
on
an
annualization
of
the
respective
class’s
August
dividend
and
the
maximum
offering
price
(NAV
for
Advisor
Class)
per
share
on
8/31/20.
7.
Taxable
equivalent
distribution
rate
and
yield
assume
the
published
rates
as
of
6/18/20
for
the
maximum
combined
effective
federal
and
Georgia
personal
income
tax
rate
of
46.30%,
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.
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
(3/1/20–8/31/20)
Share
Class
Net
Investment
Income
A
$0.153390
A1
$0.162370
C
$0.129618
R6
$0.170943
Advisor
$0.168385
Total
Annual
Operating
Expenses
9
Share
Class
A
0.86%
Advisor
0.61%
Your
Fund’s
Expenses
Franklin
Georgia
Tax-Free
Income
Fund
19
franklintempleton.com
Semiannual
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
184/365
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
3/1/20
Ending
Account
Value
8/31/20
Expenses
Paid
During
Period
3/1/20–8/31/20
1,2
Ending
Account
Value
8/31/20
Expenses
Paid
During
Period
3/1/20–8/31/20
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$995.60
$4.30
$1,020.89
$4.36
0.86%
A1
$1,000
$996.30
$3.56
$1,021.64
$3.61
0.71%
C
$1,000
$992.90
$6.30
$1,018.88
$6.38
1.25%
R6
$1,000
$996.20
$2.84
$1,022.36
$2.88
0.56%
Advisor
$1,000
$996.00
$3.06
$1,022.14
$3.10
0.61%
20
franklintempleton.com
Semiannual
Report
Franklin
Kentucky
Tax-Free
Income
Fund
This
semiannual
report
for
Franklin
Kentucky
Tax-Free
Income
Fund
covers
the
period
ended
August
31,
2020
.
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
to
provide
as
high
a
level
of
income
exempt
from
federal
and
Kentucky
personal
income
taxes
as
is
consistent
with
prudent
investment
management
and
preservation
of
capital
by
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
$11.24
on
February
29,
2020,
to
$11.04
on
August
31,
2020.
The
Fund’s
Class
A
shares
paid
dividends
totaling
13.9190
cents
per
share
for
the
same
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
2.46%,
based
on
an
annualization
of
August’s
2.3518
cents
per
share
monthly
dividend
and
the
maximum
offering
price
of
$11.47
on
August
31,
2020.
An
investor
in
the
2020
maximum
combined
effective
federal
and
Kentucky
personal
income
tax
bracket
of
45.80%
(including
3.80%
Medicare
tax)
would
need
to
earn
a
distribution
rate
of
4.54%
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
six
months
under
review,
Kentucky’s
economy
weakened
due
to
the
COVID-19
pandemic,
contracting
substantially
in
2020’s
second
quarter.
The
commonwealth’s
unemployment
spiked
in
April,
but
since
then
its
jobs
recovery
has
so
far
surpassed
the
nation’s,
buoyed
by
the
transportation
and
logistics
businesses.
Its
unemployment
rate
rose
from
4.2%
in
February
2020
to
7.6%
at
period-end,
below
the
nation’s
8.4%
average.
3
Kentucky
ended
fiscal
year
(FY)
2020
with
a
surplus
after
outperforming
its
revised
FY
2020
revenue
estimates,
coupled
with
agency
spending
holdbacks
and
enhanced
Medicaid
support.
More
recent
negative
economic
trends
may
generate
budgetary
stress
in
FY
2021.
The
commonwealth’s
net
tax-supported
debt
was
Credit
Quality
Composition
*
8/31/20
Ratings
%
of
Total
Investments
AAA
4.76%
AA
44.25%
A
30.60%
BBB
14.17%
Refunded
6.22%
*Securities,
except
for
those
labeled
Not
Rated,
are
assigned
ratings
by
one
or
more
Nationally
Recognized
Statistical
Credit
Rating
Organizations
(NRSROs),
such
as
Standard
&
Poor’s,
Moody’s
and
Fitch,
that
can
be
considered
by
the
investment
man-
ager
as
part
of
its
independent
securities
analysis.
When
ratings
from
multiple
agen-
cies
are
available,
the
highest
is
used,
consistent
with
the
portfolio
investment
process.
Ratings
reflect
an
NRSRO’s
opinion
of
an
issuer’s
creditworthiness
and
typically
range
from
AAA
(highest)
to
D
(lowest).
The
Below
Investment
Grade
category
consists
of
bonds
rated
below
BBB-.
The
Refunded
category
generally
consists
of
refunded
bonds
secured
by
U.S.
government
or
other
high-quality
securities
and
not
rerated
by
an
NRSRO.
The
Not
Rated
category
consists
of
ratable
securities
that
have
not
been
rated
by
an
NRSRO.
Cash
and
equivalents
are
excluded
from
this
composition.
Portfolio
Composition
8/31/20
%
of
Total
Investments
*
Utilities
27.37%
Subject
to
Government
Appropriations
23.77%
Higher
Education
21.34%
Hospital
&
Health
Care
11.47%
Refunded**
10.97%
Housing
3.06%
Tax-Supported
2.02%
*
Does
not
include
cash
and
cash
equivalents.
**
Includes
all
refunded
bonds;
the
percentage
may
differ
from
that
in
the
Credit
Quality
Composition.
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
estimated
tax-basis
net
investment
income
distributions
for
the
period
shown.
A
portion
or
all
of
the
distribution
may
be
reclassified
as
return
of
capital
or
short-term
or
long-term
capital
gains
once
final
tax
designations
are
known.
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:
Bureau
of
Labor
Statistics.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Statement
of
Investments
(SOI).
The
SOI
begins
on
page
79
.
Franklin
Kentucky
Tax-Free
Income
Fund
21
franklintempleton.com
Semiannual
Report
$2,278
per
capita
and
5.2%
of
personal
income,
above
the
$1,071
and
2.0%
national
medians,
respectively.
4
During
the
period,
the
independent
credit
rating
agency
Standard
&
Poor’s
(S&P)
affirmed
Kentucky’s
issuer
credit
A
rating
with
a
stable
outlook.
5
The
rating
reflected
S&P’s
expectation
that
the
commonwealth’s
budgeting
may
weaken
amid
a
slower
economy
and
lower
revenues,
and
also
reflected
concerns
given
recent
market
volatility
and
a
limited
history
of
fully
funding
pensions.
S&P’s
stable
outlook
is
based
on
Kentucky’s
improved
pension
funding
and
its
commitment
to
long-term,
structurally
balanced,
sustainable
budgeting.
Manager’s
Discussion
We
used
various
investment
strategies
during
the
six
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
Kentucky
Tax-Free
Income
Fund.
We
believe
our
conservative,
buy-and-hold
investment
strategy
can
help
us
achieve
high,
current,
tax-free
income
for
shareholders.
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
August
31,
2020,
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.
4.
Source:
Moody’s
Investors
Service,
State
government
–
U.S.:
Medians
–
State
debt
declined
in
2019,
but
likely
to
grow
in
coming
years
,
5/12/20.
5.
This
does
not
indicate
S&P’s
rating
of
the
Fund.
See
www.franklintempletondatasources.com
for
additional
data
provider
information
Performance
Summary
as
of
August
31,
2020
Franklin
Kentucky
Tax-Free
Income
Fund
22
franklintempleton.com
Semiannual
Report
The
performance
tables
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
8/31/20
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
3.75%
and
the
minimum
is
0%.
Class
A
:
3.75%
maximum
initial
sales
charge;
Advisor
Class:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Share
Class
Cumulative
Total
Return
1
Average
Annual
Total
Return
2
–
A
3,4
6-Month
-0.52%
-4.25%
1-Year
+1.73%
-2.09%
5-Year
+15.10%
+2.07%
10-Year
+37.10%
+2.81%
Advisor
5
6-Month
-0.40%
-0.40%
1-Year
+1.98%
+1.98%
5-Year
+15.81%
+2.98%
10-Year
+37.89%
+3.26%
Share
Class
Distribution
Rate
6
Taxable
Equivalent
Distribution
Rate
7
30-Day
Standardized
Yield
8
Taxable
Equivalent
30-Day
Standardized
Yield
7
A
2.46%
4.54%
1.31%
2.42%
Advisor
2.81%
5.19%
1.61%
2.97%
See
page
23
for
Performance
Summary
footnotes.
Franklin
Kentucky
Tax-Free
Income
Fund
Performance
Summary
23
franklintempleton.com
Semiannual
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.
Unexpected
events
and
their
aftermaths,
such
as
the
spread
of
deadly
diseases;
natural,
environmental
or
man-made
disasters;
financial,
political
or
social
disruptions;
terrorism
and
war;
and
other
tragedies
or
catastrophes,
can
cause
investor
fear
and
panic,
which
can
adversely
affect
the
economies
of
many
companies,
sectors,
nations,
regions
and
the
market
in
general,
in
ways
that
cannot
necessarily
be
foreseen.
The
Fund’s
prospectus
also
includes
a
description
of
the
main
investment
risks.
1.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
2.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
3.
Effective
9/10/18,
Class
A
shares
closed
to
new
investors,
were
renamed
Class
A1
shares,
and
a
new
Class
A
share
with
a
different
expense
structure
became
available.
Class
A
performance
shown
has
been
calculated
as
follows:
(a)
for
periods
prior
to
9/10/18,
a
restated
figure
is
used
based
on
the
Fund’s
Class
A1
performance
that
includes
any
Rule
12b-1
rate
differential
that
exists
between
Class
A1
and
Class
A;
and
(b)
for
periods
after
9/10/18,
actual
Class
A
performance
is
used,
reflecting
all
charges
and
fees
applicable
to
that
class.
4.
Prior
to
3/1/19,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
4.25%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total
returns
(with
sales
charges)
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
3.75%.
5.
Effective
9/15/16,
the
Fund
began
offering
Advisor
Class
shares,
which
do
not
have
sales
charges
or
a
Rule
12b-1
plan.
Performance
quotations
for
this
class
reflect
the
following
methods
of
calculation:
(a)
For
periods
prior
to
9/15/16,
a
restated
figure
is
used
based
upon
the
Fund’s
Class
A
performance,
excluding
the
effect
of
Class
A’s
maximum
initial
sales
charge,
but
reflecting
the
effect
of
the
Class
A
Rule
12b-1
fees;
and
(b)
for
periods
after
9/15/16,
actual
Advisor
Class
performance
is
used
reflecting
all
charges
and
fees
applicable
to
that
class.
6.
Distribution
rate
is
based
on
an
annualization
of
the
respective
class’s
August
dividend
and
the
maximum
offering
price
(NAV
for
Advisor
Class)
per
share
on
8/31/20.
7.
Taxable
equivalent
distribution
rate
and
yield
assume
the
published
rates
as
of
6/18/20
for
the
maximum
combined
effective
federal
and
Kentucky
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.
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
(3/1/20–8/31/20)
Share
Class
Net
Investment
Income
A
$0.139190
A1
$0.147450
R6
$0.155313
Advisor
$0.152995
Total
Annual
Operating
Expenses
9
Share
Class
A
0.97%
Advisor
0.72%
Your
Fund’s
Expenses
Franklin
Kentucky
Tax-Free
Income
Fund
24
franklintempleton.com
Semiannual
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
184/365
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
3/1/20
Ending
Account
Value
8/31/20
Expenses
Paid
During
Period
3/1/20–8/31/20
1,2
Ending
Account
Value
8/31/20
Expenses
Paid
During
Period
3/1/20–8/31/20
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$994.80
$4.89
$1,020.30
$4.95
0.97%
A1
$1,000
$995.50
$4.15
$1,021.05
$4.20
0.82%
R6
$1,000
$996.20
$3.43
$1,021.77
$3.48
0.68%
Advisor
$1,000
$996.00
$3.64
$1,021.56
$3.69
0.72%
25
franklintempleton.com
Semiannual
Report
Franklin
Louisiana
Tax-Free
Income
Fund
This
semiannual
report
for
Franklin
Louisiana
Tax-Free
Income
Fund
covers
the
period
ended
August
31,
2020
.
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
to
provide
as
high
a
level
of
income
exempt
from
federal
and
Louisiana
personal
income
taxes
as
is
consistent
with
prudent
investment
management
and
preservation
of
capital
by
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
$11.55
on
February
29,
2020,
to
$11.30
on
August
31,
2020.
The
Fund’s
Class
A
shares
paid
dividends
totaling
14.3395
cents
per
share
for
the
same
period.
2
The
Performance
Summary
beginning
on
page
27
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
August’s
2.3109
cents
per
share
monthly
dividend
and
the
maximum
offering
price
of
$11.74
on
August
31,
2020.
An
investor
in
the
2020
maximum
combined
effective
federal
and
Louisiana
personal
income
tax
bracket
of
46.80%
(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
During
the
six
months
under
review,
Louisiana’s
economy
weakened
due
to
the
COVID-19
pandemic
and
falling
oil
prices.
The
state
was
dependent
on
the
energy
sector
without
a
strong
alternative
economic
driver,
and
its
slow
population
growth,
high
poverty
rate
and
low
relative
per
capita
personal
income
constrained
the
economy.
Louisiana’s
unemployment
rate
rose
from
4.6%
in
February
2019
to
7.6%
at
period
end,
below
the
nation’s
8.4%
average.
3
The
state
had
a
recent
record
of
balancing
its
Credit
Quality
Composition
*
8/31/20
Ratings
%
of
Total
Investments
AAA
0.87%
AA
42.66%
A
35.69%
BBB
2.68%
Below
Investment
Grade
1.73%
Refunded
16.37%
*Securities,
except
for
those
labeled
Not
Rated,
are
assigned
ratings
by
one
or
more
Nationally
Recognized
Statistical
Credit
Rating
Organizations
(NRSROs),
such
as
Standard
&
Poor’s,
Moody’s
and
Fitch,
that
can
be
considered
by
the
investment
man-
ager
as
part
of
its
independent
securities
analysis.
When
ratings
from
multiple
agen-
cies
are
available,
the
highest
is
used,
consistent
with
the
portfolio
investment
process.
Ratings
reflect
an
NRSRO’s
opinion
of
an
issuer’s
creditworthiness
and
typically
range
from
AAA
(highest)
to
D
(lowest).
The
Below
Investment
Grade
category
consists
of
bonds
rated
below
BBB-.
The
Refunded
category
generally
consists
of
refunded
bonds
secured
by
U.S.
government
or
other
high-quality
securities
and
not
rerated
by
an
NRSRO.
The
Not
Rated
category
consists
of
ratable
securities
that
have
not
been
rated
by
an
NRSRO.
Cash
and
equivalents
are
excluded
from
this
composition.
Portfolio
Composition
8/31/20
%
of
Total
Investments
*
Tax-Supported
20.69%
Refunded**
17.13%
Hospital
&
Health
Care
13.78%
Transportation
13.25%
Higher
Education
12.93%
General
Obligation
7.60%
Utilities
6.86%
Subject
to
Government
Appropriations
5.43%
Other
Revenue
1.80%
Housing
0.53%
*
Does
not
include
cash
and
cash
equivalents.
**
Includes
all
refunded
bonds;
the
percentage
may
differ
from
that
in
the
Credit
Quality
Composition.
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
estimated
tax-basis
net
investment
income
distributions
for
the
period
shown.
A
portion
or
all
of
the
distribution
may
be
reclassified
as
return
of
capital
or
short-term
or
long-term
capital
gains
once
final
tax
designations
are
known.
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:
Bureau
of
Labor
Statistics.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Statement
of
Investments
(SOI).
The
SOI
begins
on
page
86
.
Franklin
Louisiana
Tax-Free
Income
Fund
26
franklintempleton.com
Semiannual
Report
budget
and,
before
the
crisis,
the
state’s
proposed
fiscal
year
(FY)
2021
budget
advocated
increased
general
fund
spending,
partially
offset
by
reducing
statutory
dedications.
The
state’s
net
tax-supported
debt
was
$1,545
per
capita
and
3.2%
of
personal
income,
above
the
$1,071
and
2.0%
national
medians,
respectively.
4
The
independent
credit
rating
agency
Moody’s
Investor
Services
(Moody’s)
maintained
the
state’s
general
obligation
bonds’
Aa3
rating
but
revised
its
outlook
to
stable
from
positive.
5
The
rating
reflected
Moody’s
view
of
Louisiana’s
moderate
debt
and
pension
liabilities,
its
revenue
volatility
and
limits
on
raising
revenue
and
reducing
expenditures,
and
its
above
average
exposure
to
hurricanes
and
flooding.
The
stable
outlook
recognized
the
state’s
power
to
balance
its
budgets
in
response
to
economic
shocks,
but
also
its
low
level
of
reserves.
Manager’s
Discussion
We
used
various
investment
strategies
during
the
six
months
under
review
as
we
sought
to
maximize
tax-free
income
for
shareholders.
Please
read
the
Investment
Strategy
and
Manager’s
Discussion
on
page
4
for
more
information.
Thank
you
for
your
continued
participation
in
Franklin
Louisiana
Tax-Free
Income
Fund.
We
believe
our
conservative,
buy-and-hold
investment
strategy
can
help
us
achieve
high,
current,
tax-free
income
for
shareholders.
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
August
31,
2020,
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.
4.
Source:
Moody’s
Investors
Service,
State
government
–
U.S.:
Medians
–
State
debt
declined
in
2019,
but
likely
to
grow
in
coming
years
,
5/12/20.
5.
This
does
not
indicate
Moody’s
rating
of
the
Fund.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Performance
Summary
as
of
August
31,
2020
Franklin
Louisiana
Tax-Free
Income
Fund
27
franklintempleton.com
Semiannual
Report
The
performance
tables
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
8/31/20
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
franklintemp
leton.com
or
call
(800)
342-5236
.
Share
Class
Cumulative
Total
Return
1
Average
Annual
Total
Return
2
–
A
3,4
6-Month
-0.91%
-4.62%
1-Year
+1.71%
-2.10%
5-Year
+16.52%
+2.32%
10-Year
+38.57%
+2.92%
Advisor
5
6-Month
-0.87%
-0.87%
1-Year
+1.88%
+1.88%
5-Year
+17.24%
+3.23%
10-Year
+39.36%
+3.37%
Share
Class
Distribution
Rate
6
Taxable
Equivalent
Distribution
Rate
7
30-Day
Standardized
Yield
8
Taxable
Equivalent
30-Day
Standardized
Yield
7
A
2.36%
4.44%
0.97%
1.82%
Advisor
2.71%
5.10%
1.26%
2.37%
See
page
28
for
Performance
Summary
footnotes.
Franklin
Louisiana
Tax-Free
Income
Fund
Performance
Summary
28
franklintempleton.com
Semiannual
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.
Puerto
Rico
municipal
bonds
have
been
impacted
by
recent
adverse
economic
and
market
changes,
which
may
cause
the
Fund’s
share
price
to
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.
Unexpected
events
and
their
aftermaths,
such
as
the
spread
of
deadly
diseases;
natural,
environmental
or
man-made
disasters;
financial,
political
or
social
disruptions;
terrorism
and
war;
and
other
tragedies
or
catastrophes,
can
cause
investor
fear
and
panic,
which
can
adversely
affect
the
econo-
mies
of
many
companies,
sectors,
nations,
regions
and
the
market
in
general,
in
ways
that
cannot
necessarily
be
foreseen.
The
Fund’s
prospectus
also
includes
a
description
of
the
main
investment
risks.
1.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
2.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
3.
Effective
9/10/18,
Class
A
shares
closed
to
new
investors,
were
renamed
Class
A1
shares,
and
a
new
Class
A
share
with
a
different
expense
structure
became
available.
Class
A
performance
shown
has
been
calculated
as
follows:
(a)
for
periods
prior
to
9/10/18,
a
restated
figure
is
used
based
on
the
Fund’s
Class
A1
performance
that
includes
any
Rule
12b-1
rate
differential
that
exists
between
Class
A1
and
Class
A;
and
(b)
for
periods
after
9/10/18,
actual
Class
A
performance
is
used,
reflecting
all
charges
and
fees
applicable
to
that
class.
4.
Prior
to
3/1/19,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
4.25%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total
returns
(with
sales
charges)
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
3.75%.
5.
Effective
9/15/16,
the
Fund
began
offering
Advisor
Class
shares,
which
do
not
have
sales
charges
or
a
Rule
12b-1
plan.
Performance
quotations
for
this
class
reflect
the
following
methods
of
calculation:
(a)
For
periods
prior
to
9/15/16,
a
restated
figure
is
used
based
upon
the
Fund’s
Class
A
performance,
excluding
the
effect
of
Class
A’s
maximum
initial
sales
charge,
but
reflecting
the
effect
of
the
Class
A
Rule
12b-1
fees;
and
(b)
for
periods
after
9/15/16,
actual
Advisor
Class
performance
is
used
reflecting
all
charges
and
fees
applicable
to
that
class.
6.
Distribution
rate
is
based
on
an
annualization
of
the
respective
class’s
August
dividend
and
the
maximum
offering
price
(NAV
for
Advisor
Class)
per
share
on
8/31/20.
7.
Taxable
equivalent
distribution
rate
and
yield
assume
the
published
rates
as
of
6/18/20
for
the
maximum
combined
effective
federal
and
Louisiana
personal
income
tax
rate
of
46.80%,
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.
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
(3/1/20–8/31/20)
Share
Class
Net
Investment
Income
A
$0.143395
A1
$0.151914
C
$0.120985
R6
$0.159693
Advisor
$0.157617
Total
Annual
Operating
Expenses
9
Share
Class
A
0.86%
Advisor
0.61%
Your
Fund’s
Expenses
Franklin
Louisiana
Tax-Free
Income
Fund
29
franklintempleton.com
Semiannual
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
184/365
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
3/1/20
Ending
Account
Value
8/31/20
Expenses
Paid
During
Period
3/1/20–8/31/20
1,2
Ending
Account
Value
8/31/20
Expenses
Paid
During
Period
3/1/20–8/31/20
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$990.90
$4.33
$1,020.85
$4.40
0.86%
A1
$1,000
$990.80
$3.59
$1,021.60
$3.65
0.72%
C
$1,000
$988.30
$6.32
$1,018.85
$6.42
1.26%
R6
$1,000
$991.50
$2.89
$1,022.30
$2.94
0.58%
Advisor
$1,000
$991.30
$3.09
$1,022.11
$3.13
0.62%
30
franklintempleton.com
Semiannual
Report
Franklin
Maryland
Tax-Free
Income
Fund
This
semiannual
report
for
Franklin
Maryland
Tax-Free
Income
Fund
covers
the
period
ended
August
31,
2020
.
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
to
provide
as
high
a
level
of
income
exempt
from
federal
and
Maryland
personal
income
taxes
as
is
consistent
with
prudent
investment
management
and
preservation
of
capital
by
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
$11.35
on
February
29,
2020,
to
$11.05
on
August
31,
2020.
The
Fund’s
Class
A
shares
paid
dividends
totaling
14.7036
cents
per
share
for
the
same
period.
2
The
Performance
Summary
beginning
on
page
32
shows
that
at
the
end
of
this
reporting
period
the
Fund’s
Class
A
shares’
distribution
rate
was
2.61%,
based
on
an
annualization
of
August’s
2.4978
cents
per
share
monthly
dividend
and
the
maximum
offering
price
of
$11.48
on
August
31,
2020.
An
investor
in
the
2020
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
5.20%
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
six
months
under
review,
Maryland’s
economy
deteriorated
due
to
the
COVID-19
pandemic,
but
it
was
supported
by
high
personal
income
levels
as
a
significant
federal
presence
with
proximity
to
the
nation’s
capital
provided
well-paid
civilian
and
national
defense
jobs.
The
state’s
unemployment
rate
rose
from
3.3%
in
February
2020
to
6.9%
at
period-end,
significantly
below
the
nation’s
8.4%
average.
3
Maryland
has
a
history
of
initiatives
in
response
to
economic
cycles
and
took
action
to
alleviate
fiscal
pressures
as
revenues
declined
during
the
period,
and
the
fiscal
year
(FY)
2020
budget
shortfall
was
closed.
The
potential
gap
Credit
Quality
Composition
*
8/31/20
Ratings
%
of
Total
Investments
AAA
19.94%
AA
28.65%
A
25.91%
BBB
9.12%
Below
Investment
Grade
1.09%
Refunded
12.39%
Not
Rated
2.90%
*Securities,
except
for
those
labeled
Not
Rated,
are
assigned
ratings
by
one
or
more
Nationally
Recognized
Statistical
Credit
Rating
Organizations
(NRSROs),
such
as
Standard
&
Poor’s,
Moody’s
and
Fitch,
that
can
be
considered
by
the
investment
man-
ager
as
part
of
its
independent
securities
analysis.
When
ratings
from
multiple
agen-
cies
are
available,
the
highest
is
used,
consistent
with
the
portfolio
investment
process.
Ratings
reflect
an
NRSRO’s
opinion
of
an
issuer’s
creditworthiness
and
typically
range
from
AAA
(highest)
to
D
(lowest).
The
Below
Investment
Grade
category
consists
of
bonds
rated
below
BBB-.
The
Refunded
category
generally
consists
of
refunded
bonds
secured
by
U.S.
government
or
other
high-quality
securities
and
not
rerated
by
an
NRSRO.
The
Not
Rated
category
consists
of
ratable
securities
that
have
not
been
rated
by
an
NRSRO.
Cash
and
equivalents
are
excluded
from
this
composition.
Portfolio
Composition
8/31/20
%
of
Total
Investments
*
Hospital
&
Health
Care
23.10%
Utilities
17.35%
General
Obligation
15.48%
Housing
12.77%
Refunded**
12.71%
Higher
Education
6.57%
Transportation
6.18%
Other
Revenue
5.34%
Subject
to
Government
Appropriations
0.50%
*
Does
not
include
cash
and
cash
equivalents.
**
Includes
all
refunded
bonds;
the
percentage
may
differ
from
that
in
the
Credit
Quality
Composition.
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
estimated
tax-basis
net
investment
income
distributions
for
the
period
shown.
A
portion
or
all
of
the
distribution
may
be
reclassified
as
return
of
capital
or
short-term
or
long-term
capital
gains
once
final
tax
designations
are
known.
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:
Bureau
of
Labor
Statistics.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Statement
of
Investments
(SOI).
The
SOI
begins
on
page
94
.
Franklin
Maryland
Tax-Free
Income
Fund
31
franklintempleton.com
Semiannual
Report
in
FY
2021
means
more
action
will
be
needed
in
a
difficult
budget
year.
The
state’s
net
tax-supported
debt
was
$2,323
per
capita
and
3.5%
of
personal
income,
above
the
$1,071
and
2.0%
national
medians,
respectively.
4
The
independent
credit
rating
agency
Standard
&
Poor’s
(S&P)
maintained
the
state’s
general
obligation
bonds’
AAA
rating
with
a
stable
outlook.
5
The
rating
reflected
S&P’s
view
that
the
state
government’s
framework
is
a
credit
strength,
with
adequate
budgetary
reserves,
strong
liquidity
and
an
economy
supported
by
high
personal
income.
S&P’s
outlook
noted
Maryland’s
history
of
proactive
budget
management
and
expenditure
reductions
when
needed.
Manager’s
Discussion
We
used
various
investment
strategies
during
the
six
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
Maryland
Tax-Free
Income
Fund.
We
believe
our
conservative,
buy-and-hold
investment
strategy
can
help
us
achieve
high,
current,
tax-free
income
for
shareholders.
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
August
31,
2020,
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.
4.
Source:
Moody’s
Investors
Service,
State
government
–
U.S.:
Medians
–
State
debt
declined
in
2019,
but
likely
to
grow
in
coming
years
,
5/12/20.
5.
This
does
not
indicate
S&P’s
rating
of
the
Fund.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Performance
Summary
as
of
August
31,
2020
Franklin
Maryland
Tax-Free
Income
Fund
32
franklintempleton.com
Semiannual
Report
The
performance
tables
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
8/31/20
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
3.75%
and
the
minimum
is
0%.
Class
A
:
3.75%
maximum
initial
sales
charge;
Advisor
Class:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Share
Class
Cumulative
Total
Return
1
Average
Annual
Total
Return
2
–
A
3,4
6-Month
-1.33%
-5.03%
1-Year
+1.10%
-2.69%
5-Year
+15.56%
+2.15%
10-Year
+32.98%
+2.50%
Advisor
6-Month
-1.20%
-1.20%
1-Year
+1.35%
+1.35%
5-Year
+16.59%
+3.12%
10-Year
+34.89%
+3.04%
Share
Class
Distribution
Rate
5
Taxable
Equivalent
Distribution
Rate
6
30-Day
Standardized
Yield
7
Taxable
Equivalent
30-Day
Standardized
Yield
6
A
2.61%
5.20%
1.08%
2.15%
Advisor
2.96%
5.90%
1.36%
2.71%
See
page
33
for
Performance
Summary
footnotes.
Franklin
Maryland
Tax-Free
Income
Fund
Performance
Summary
33
franklintempleton.com
Semiannual
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.
Puerto
Rico
municipal
bonds
have
been
impacted
by
recent
adverse
economic
and
market
changes,
which
may
cause
the
Fund’s
share
price
to
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.
Unexpected
events
and
their
aftermaths,
such
as
the
spread
of
deadly
diseases;
natural,
environmental
or
man-made
disasters;
financial,
political
or
social
disruptions;
terrorism
and
war;
and
other
tragedies
or
catastrophes,
can
cause
investor
fear
and
panic,
which
can
adversely
affect
the
econo-
mies
of
many
companies,
sectors,
nations,
regions
and
the
market
in
general,
in
ways
that
cannot
necessarily
be
foreseen.
The
Fund’s
prospectus
also
includes
a
description
of
the
main
investment
risks.
1.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
2.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
3.
Effective
9/10/18,
Class
A
shares
closed
to
new
investors,
were
renamed
Class
A1
shares,
and
a
new
Class
A
share
with
a
different
expense
structure
became
available.
Class
A
performance
shown
has
been
calculated
as
follows:
(a)
for
periods
prior
to
9/10/18,
a
restated
figure
is
used
based
on
the
Fund’s
Class
A1
performance
that
includes
any
Rule
12b-1
rate
differential
that
exists
between
Class
A1
and
Class
A;
and
(b)
for
periods
after
9/10/18,
actual
Class
A
performance
is
used,
reflecting
all
charges
and
fees
applicable
to
that
class.
4.
Prior
to
3/1/19,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
4.25%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total
returns
(with
sales
charges)
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
3.75%.
5.
Distribution
rate
is
based
on
an
annualization
of
the
respective
class’s
August
dividend
and
the
maximum
offering
price
(NAV
for
Advisor
Class)
per
share
on
8/31/20.
6.
Taxable
equivalent
distribution
rate
and
yield
assume
the
published
rates
as
of
6/18/20
for
the
maximum
combined
effective
federal
and
Maryland
state
and
local
personal
income
tax
rate
of
49.75%,
based
on
the
federal
income
tax
rate
of
37.00%
plus
3.80%
Medicare
tax.
7.
The
Fund’s
30-day
standardized
yield
is
calculated
over
a
trailing
30-day
period
using
the
yield
to
maturity
on
bonds
and/or
the
dividends
accrued
on
stocks.
It
may
not
equal
the
Fund’s
actual
income
distribution
rate,
which
reflects
the
Fund’s
past
dividends
paid
to
shareholders.
8.
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
(3/1/20–8/31/20)
Share
Class
Net
Investment
Income
A
$0.147036
A1
$0.155364
C
$0.125151
R6
$0.163582
Advisor
$0.160975
Total
Annual
Operating
Expenses
8
Share
Class
A
0.88%
Advisor
0.63%
Your
Fund’s
Expenses
Franklin
Maryland
Tax-Free
Income
Fund
34
franklintempleton.com
Semiannual
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
184/365
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
3/1/20
Ending
Account
Value
8/31/20
Expenses
Paid
During
Period
3/1/20–8/31/20
1,2
Ending
Account
Value
8/31/20
Expenses
Paid
During
Period
3/1/20–8/31/20
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$986.70
$4.36
$1,020.82
$4.43
0.87%
A1
$1,000
$988.30
$3.62
$1,021.57
$3.68
0.72%
C
$1,000
$985.10
$6.33
$1,018.82
$6.44
1.27%
R6
$1,000
$988.20
$2.87
$1,022.32
$2.92
0.57%
Advisor
$1,000
$988.00
$3.11
$1,022.07
$3.17
0.62%
35
franklintempleton.com
Semiannual
Report
Franklin
Missouri
Tax-Free
Income
Fund
This
semiannual
report
for
Franklin
Missouri
Tax-Free
Income
Fund
covers
the
period
ended
August
31,
2020
.
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
to
provide
as
high
a
level
of
income
exempt
from
federal
and
Missouri
personal
income
taxes
as
is
consistent
with
prudent
investment
management
and
preservation
of
capital
by
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
$12.09
on
February
29,
2020,
to
$11.91
on
August
31,
2020.
The
Fund’s
Class
A
shares
paid
dividends
totaling
14.5373
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
2.41%,
based
on
an
annualization
of
August’s
2.4888
cents
per
share
monthly
dividend
and
the
maximum
offering
price
of
$12.37
on
August
31,
2020.
An
investor
in
the
2020
maximum
combined
effective
federal
and
Missouri
personal
income
tax
bracket
of
46.20%
(including
3.80%
Medicare
tax)
would
need
to
earn
a
distribution
rate
of
4.49%
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
six
months
under
review,
Missouri’s
economy
declined
in
response
to
the
COVID-19
pandemic,
but
it
experienced
a
less
protracted
economic
shutdown
relative
to
other
states,
aided
by
its
high
industrial
and
employment
diversity,
and
a
low
cost
of
doing
business.
Missouri’s
unemployment
rate
rose
from
3.5%
in
February
2020
to
7.0%
at
period-end,
significantly
below
the
nation’s
8.4%
average.
3
The
state’s
strong
financial
position
at
the
start
of
the
pandemic
and
its
expenditure
flexibility
helped
mitigate
Credit
Quality
Composition
*
8/31/20
Ratings
%
of
Total
Investments
AAA
7.91%
AA
47.90%
A
25.21%
BBB
9.58%
Below
Investment
Grade
2.62%
Refunded
6.78%
*Securities,
except
for
those
labeled
Not
Rated,
are
assigned
ratings
by
one
or
more
Nationally
Recognized
Statistical
Credit
Rating
Organizations
(NRSROs),
such
as
Standard
&
Poor’s,
Moody’s
and
Fitch,
that
can
be
considered
by
the
investment
man-
ager
as
part
of
its
independent
securities
analysis.
When
ratings
from
multiple
agen-
cies
are
available,
the
highest
is
used,
consistent
with
the
portfolio
investment
process.
Ratings
reflect
an
NRSRO’s
opinion
of
an
issuer’s
creditworthiness
and
typically
range
from
AAA
(highest)
to
D
(lowest).
The
Below
Investment
Grade
category
consists
of
bonds
rated
below
BBB-.
The
Refunded
category
generally
consists
of
refunded
bonds
secured
by
U.S.
government
or
other
high-quality
securities
and
not
rerated
by
an
NRSRO.
The
Not
Rated
category
consists
of
ratable
securities
that
have
not
been
rated
by
an
NRSRO.
Cash
and
equivalents
are
excluded
from
this
composition.
Portfolio
Composition
8/31/20
%
of
Total
Investments
*
Utilities
27.48%
Hospital
&
Health
Care
20.93%
General
Obligation
14.37%
Transportation
10.35%
Higher
Education
8.15%
Refunded**
7.97%
Subject
to
Government
Appropriations
4.69%
Tax-Supported
4.05%
Corporate-Backed
1.10%
Housing
0.81%
Other
Revenue
0.10%
*
Does
not
include
cash
and
cash
equivalents.
**
Includes
all
refunded
bonds;
the
percentage
may
differ
from
that
in
the
Credit
Quality
Composition.
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
estimated
tax-basis
net
investment
income
distributions
for
the
period
shown.
A
portion
or
all
of
the
distribution
may
be
reclassified
as
return
of
capital
or
short-term
or
long-term
capital
gains
once
final
tax
designations
are
known.
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:
Bureau
of
Labor
Statistics.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Statement
of
Investments
(SOI).
The
SOI
begins
on
page
102
.
Franklin
Missouri
Tax-Free
Income
Fund
36
franklintempleton.com
Semiannual
Report
revenue
declines.
In
response
to
reduced
state
general
revenue
compared
to
fiscal
year
(FY)
2019,
Missouri
instituted
spending
reductions
across
state
agencies
and
reduced
its
workforce,
resulting
in
a
balanced
FY
2020
budget.
The
latest
FY
2021
budget
assumes
revenue
growth
over
FY
2020.
The
state’s
net
tax-supported
debt
was
$464
per
capita
and
0.9%
of
personal
income,
below
the
$1,071
and
2.0%
national
medians,
respectively.
4
During
the
period
under
review,
independent
credit
rating
agency
Moody’s
Investor
Services
(Moody’s)
maintained
the
state’s
general
obligation
bonds’
Aaa
rating
with
a
stable
outlook.
5
Moody’s
rating
reflected
Missouri’s
strong
executive
powers
to
respond
to
revenue
shortfalls,
its
historically
conservative
fiscal
policies,
a
history
of
solid
reserve
levels
and
a
below
average
debt
and
pension
burden.
Manager’s
Discussion
We
used
various
investment
strategies
during
the
six
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
Missouri
Tax-Free
Income
Fund.
We
believe
our
conservative,
buy-and-hold
investment
strategy
can
help
us
achieve
high,
current,
tax-free
income
for
shareholders.
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
August
31,
2020,
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.
4.
Source:
Moody’s
Investors
Service,
State
government
–
U.S.:
Medians
–
State
debt
declined
in
2019,
but
likely
to
grow
in
coming
years
,
5/12/20.
5.
This
does
not
indicate
Moody’s
rating
of
the
Fund.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Performance
Summary
as
of
August
31,
2020
Franklin
Missouri
Tax-Free
Income
Fund
37
franklintempleton.com
Semiannual
Report
The
performance
tables
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
8/31/20
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
3.75%
and
the
minimum
is
0%.
Class
A
:
3.75%
maximum
initial
sales
charge;
Advisor
Class:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Share
Class
Cumulative
Total
Return
1
Average
Annual
Total
Return
2
–
A
3,4
6-Month
-0.27%
-4.01%
1-Year
+2.24%
-1.60%
5-Year
+16.63%
+2.34%
10-Year
+36.82%
+2.79%
Advisor
6-Month
-0.14%
-0.14%
1-Year
+2.49%
+2.49%
5-Year
+17.47%
+3.27%
10-Year
+38.41%
+3.30%
Share
Class
Distribution
Rate
5
Taxable
Equivalent
Distribution
Rate
6
30-Day
Standardized
Yield
7
Taxable
Equivalent
30-Day
Standardized
Yield
6
A
2.41%
4.49%
1.06%
1.97%
Advisor
2.76%
5.14%
1.35%
2.51%
See
page
38
for
Performance
Summary
footnotes.
Franklin
Missouri
Tax-Free
Income
Fund
Performance
Summary
38
franklintempleton.com
Semiannual
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.
Puerto
Rico
municipal
bonds
have
been
impacted
by
recent
adverse
economic
and
market
changes,
which
may
cause
the
Fund’s
share
price
to
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.
Unexpected
events
and
their
aftermaths,
such
as
the
spread
of
deadly
diseases;
natural,
environmental
or
man-made
disasters;
financial,
political
or
social
disruptions;
terrorism
and
war;
and
other
tragedies
or
catastrophes,
can
cause
investor
fear
and
panic,
which
can
adversely
affect
the
econo-
mies
of
many
companies,
sectors,
nations,
regions
and
the
market
in
general,
in
ways
that
cannot
necessarily
be
foreseen.
The
Fund’s
prospectus
also
includes
a
description
of
the
main
investment
risks.
1.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
2.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
3.
Effective
9/10/18,
Class
A
shares
closed
to
new
investors,
were
renamed
Class
A1
shares,
and
a
new
Class
A
share
with
a
different
expense
structure
became
available.
Class
A
performance
shown
has
been
calculated
as
follows:
(a)
for
periods
prior
to
9/10/18,
a
restated
figure
is
used
based
on
the
Fund’s
Class
A1
performance
that
includes
any
Rule
12b-1
rate
differential
that
exists
between
Class
A1
and
Class
A;
and
(b)
for
periods
after
9/10/18,
actual
Class
A
performance
is
used,
reflecting
all
charges
and
fees
applicable
to
that
class.
4.
Prior
to
3/1/19,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
4.25%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total
returns
(with
sales
charges)
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
3.75%.
5.
Distribution
rate
is
based
on
an
annualization
of
the
respective
class’s
August
dividend
and
the
maximum
offering
price
(NAV
for
Advisor
Class)
per
share
on
8/31/20.
6.
Taxable
equivalent
distribution
rate
and
yield
assume
the
published
rates
as
of
6/18/20
for
the
maximum
combined
effective
federal
and
Missouri
personal
income
tax
rate
of
46.20%,
based
on
the
federal
income
tax
rate
of
37.00%
plus
3.80%
Medicare
tax.
7.
The
Fund’s
30-day
standardized
yield
is
calculated
over
a
trailing
30-day
period
using
the
yield
to
maturity
on
bonds
and/or
the
dividends
accrued
on
stocks.
It
may
not
equal
the
Fund’s
actual
income
distribution
rate,
which
reflects
the
Fund’s
past
dividends
paid
to
shareholders.
8.
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
(3/1/20–8/31/20)
Share
Class
Net
Investment
Income
A
$0.145373
A1
$0.154301
C
$0.121662
R6
$0.162312
Advisor
$0.160289
Total
Annual
Operating
Expenses
8
Share
Class
A
0.81%
Advisor
0.56%
Your
Fund’s
Expenses
Franklin
Missouri
Tax-Free
Income
Fund
39
franklintempleton.com
Semiannual
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
184/365
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
3/1/20
Ending
Account
Value
8/31/20
Expenses
Paid
During
Period
3/1/20–8/31/20
1,2
Ending
Account
Value
8/31/20
Expenses
Paid
During
Period
3/1/20–8/31/20
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$
997.30
$4.08
$1,021.12
$4.13
0.81%
A1
$1,000
$997.30
$3.34
$1,021.86
$3.38
0.66%
C
$1,000
$994.60
$6.09
$1,019.10
$6.16
1.21%
R6
$1,000
$997.90
$2.66
$1,022.54
$2.70
0.53%
Advisor
$1,000
$998.60
$2.84
$1,022.37
$2.87
0.56%
40
franklintempleton.com
Semiannual
Report
Franklin
North
Carolina
Tax-Free
Income
Fund
This
semiannual
report
for
Franklin
North
Carolina
Tax-Free
Income
Fund
covers
the
period
ended
August
31,
2020
.
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
to
provide
as
high
a
level
of
income
exempt
from
federal
and
North
Carolina
personal
income
taxes
as
is
consistent
with
prudent
investment
management
and
preservation
of
capital
by
investing
at
least
80%
of
its
total
assets
in
securities
that
pay
interest
free
from
such
taxes.
1
Performance
Overview
The
Fund’s
Class
A
share
price,
as
measured
by
net
asset
value,
decreased
from
$11.84
on
February
29,
2020,
to
$11.73
on
August
31,
2020.
The
Fund’s
Class
A
shares
paid
dividends
totaling
13.5482
cents
per
share
for
the
same
period.
2
The
Performance
Summary
beginning
on
page
42
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
August’s
2.2288
cents
per
share
monthly
dividend
and
the
maximum
offering
price
of
$12.19
on
August
31,
2020.
An
investor
in
the
2020
maximum
combined
effective
federal
and
North
Carolina
personal
income
tax
bracket
of
46.05%
(including
3.80%
Medicare
tax)
would
need
to
earn
a
distribution
rate
of
4.07%
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
six
months
under
review,
North
Carolina’s
economy
contracted.
Recent
growth
in
the
economy
was
driven
by
a
rise
in
professional
and
business
services,
but
reduced
consumption
and
financial
hardship
resulting
from
the
COVID-19
pandemic
have
impacted
state
revenues.
The
state’s
unemployment
rate
rose
from
3.6%
in
February
2020
to
6.5%
at
period-end,
significantly
below
the
nation’s
8.4%
average.
3
The
North
Carolina
General
Assembly
has
not
yet
passed
the
biennial
budget
for
fiscal
years
(FY)
2019-2021,
due
to
differences
between
the
governor
and
state
legislature
on
spending
priorities,
but
a
2016
amendment
allows
for
the
continued
allocation
of
state
funds
at
levels
authorized
for
FY
2019
until
the
fiscal
2019-2021
Credit
Quality
Composition
*
8/31/20
Ratings
%
of
Total
Investments
AAA
22.26%
AA
61.72%
A
6.75%
BBB
2.30%
Below
Investment
Grade
0.85%
Refunded
6.12%
*Securities,
except
for
those
labeled
Not
Rated,
are
assigned
ratings
by
one
or
more
Nationally
Recognized
Statistical
Credit
Rating
Organizations
(NRSROs),
such
as
Standard
&
Poor’s,
Moody’s
and
Fitch,
that
can
be
considered
by
the
investment
man-
ager
as
part
of
its
independent
securities
analysis.
When
ratings
from
multiple
agen-
cies
are
available,
the
highest
is
used,
consistent
with
the
portfolio
investment
process.
Ratings
reflect
an
NRSRO’s
opinion
of
an
issuer’s
creditworthiness
and
typically
range
from
AAA
(highest)
to
D
(lowest).
The
Below
Investment
Grade
category
consists
of
bonds
rated
below
BBB-.
The
Refunded
category
generally
consists
of
refunded
bonds
secured
by
U.S.
government
or
other
high-quality
securities
and
not
rerated
by
an
NRSRO.
The
Not
Rated
category
consists
of
ratable
securities
that
have
not
been
rated
by
an
NRSRO.
Cash
and
equivalents
are
excluded
from
this
composition.
Portfolio
Composition
8/31/20
%
of
Total
Investments
*
Higher
Education
20.07%
Refunded**
20.05%
Hospital
&
Health
Care
18.74%
Utilities
14.94%
Transportation
10.26%
General
Obligation
8.17%
Housing
5.21%
Subject
to
Government
Appropriations
2.02%
Other
Revenue
0.54%
*
Does
not
include
cash
and
cash
equivalents.
**
Includes
all
refunded
bonds;
the
percentage
may
differ
from
that
in
the
Credit
Quality
Composition.
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
estimated
tax-basis
net
investment
income
distributions
for
the
period
shown.
A
portion
or
all
of
the
distribution
may
be
reclassified
as
return
of
capital
or
short-term
or
long-term
capital
gains
once
final
tax
designations
are
known.
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:
Bureau
of
Labor
Statistics.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Statement
of
Investments
(SOI).
The
SOI
begins
on
page
112
.
Franklin
North
Carolina
Tax-Free
Income
Fund
41
franklintempleton.com
Semiannual
Report
Appropriations
Act
is
enacted.
The
state’s
net
tax-supported
debt
was
$586
per
capita
and
1.2%
of
personal
income,
much
lower
than
the
$1,071
and
2.0%
national
medians,
respectively.
4
The
independent
credit
rating
agency
Moody’s
Investor
Service
(Moody’s)
maintained
the
state’s
general
obligation
bonds’
Aaa
stable
outlook,
reflecting
its
very
strong
credit
quality,
history
of
conservative
fiscal
practices,
healthy
reserves
and
a
low
debt
and
pension
burden.
5
The
lack
of
a
budget
this
long
reflects
governance
weakness
and
is
credit
negative.
Manager’s
Discussion
We
used
various
investment
strategies
during
the
six
months
under
review
as
we
sought
to
maximize
tax-free
income
for
shareholders.
Please
read
the
Investment
Strategy
and
Manager’s
Discussion
on
page
4
for
more
information.
Thank
you
for
your
continued
participation
in
Franklin
North
Carolina
Tax-Free
Income
Fund.
We
believe
our
conservative,
buy-and-hold
investment
strategy
can
help
us
achieve
high,
current,
tax-free
income
for
shareholders.
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
August
31,
2020,
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.
4.
Source:
Moody’s
Investors
Service,
State
government
–
U.S.:
Medians
–
State
debt
declined
in
2019,
but
likely
to
grow
in
coming
years
,
5/12/20.
5.
This
does
not
indicate
Moody’s
rating
of
the
Fund.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Performance
Summary
as
of
August
31,
2020
Franklin
North
Carolina
Tax-Free
Income
Fund
42
franklintempleton.com
Semiannual
Report
The
performance
tables
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
8/31/20
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
3.75%
and
the
minimum
is
0%.
Class
A
:
3.75%
maximum
initial
sales
charge;
Advisor
Class:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Share
Class
Cumulative
Total
Return
1
Average
Annual
Total
Return
2
–
A
3,4
6-Month
+0.23%
-3.53%
1-Year
+2.29%
-1.54%
5-Year
+14.91%
+2.04%
10-Year
+31.83%
+2.41%
Advisor
6-Month
+0.36%
+0.36%
1-Year
+2.64%
+2.64%
5-Year
+15.84%
+2.98%
10-Year
+33.50%
+2.93%
Share
Class
Distribution
Rate
5
Taxable
Equivalent
Distribution
Rate
6
30-Day
Standardized
Yield
7
Taxable
Equivalent
30-Day
Standardized
Yield
6
A
2.19%
4.07%
1.24%
2.30%
Advisor
2.54%
4.70%
1.54%
2.85%
See
page
43
for
Performance
Summary
footnotes.
Franklin
North
Carolina
Tax-Free
Income
Fund
Performance
Summary
43
franklintempleton.com
Semiannual
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.
Puerto
Rico
municipal
bonds
have
been
impacted
by
recent
adverse
economic
and
market
changes,
which
may
cause
the
Fund’s
share
price
to
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.
Unexpected
events
and
their
aftermaths,
such
as
the
spread
of
deadly
diseases;
natural,
environmental
or
man-made
disasters;
financial,
political
or
social
disruptions;
terrorism
and
war;
and
other
tragedies
or
catastrophes,
can
cause
investor
fear
and
panic,
which
can
adversely
affect
the
econo-
mies
of
many
companies,
sectors,
nations,
regions
and
the
market
in
general,
in
ways
that
cannot
necessarily
be
foreseen.
The
Fund’s
prospectus
also
includes
a
description
of
the
main
investment
risks.
1.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
2.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
3.
Effective
9/10/18,
Class
A
shares
closed
to
new
investors,
were
renamed
Class
A1
shares,
and
a
new
Class
A
share
with
a
different
expense
structure
became
available.
Class
A
performance
shown
has
been
calculated
as
follows:
(a)
for
periods
prior
to
9/10/18,
a
restated
figure
is
used
based
on
the
Fund’s
Class
A1
performance
that
includes
any
Rule
12b-1
rate
differential
that
exists
between
Class
A1
and
Class
A;
and
(b)
for
periods
after
9/10/18,
actual
Class
A
performance
is
used,
reflecting
all
charges
and
fees
applicable
to
that
class.
4.
Prior
to
3/1/19,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
4.25%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total
returns
(with
sales
charges)
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
3.75%.
5.
Distribution
rate
is
based
on
an
annualization
of
the
respective
class’s
August
dividend
and
the
maximum
offering
price
(NAV
for
Advisor
Class)
per
share
on
8/31/20.
6.
Taxable
equivalent
distribution
rate
and
yield
assume
the
published
rates
as
of
6/18/20
for
the
maximum
combined
effective
federal
and
North
Carolina
personal
income
tax
rate
of
46.05%,
based
on
the
federal
income
tax
rate
of
37.00%
plus
3.80%
Medicare
tax.
7.
The
Fund’s
30-day
standardized
yield
is
calculated
over
a
trailing
30-day
period
using
the
yield
to
maturity
on
bonds
and/or
the
dividends
accrued
on
stocks.
It
may
not
equal
the
Fund’s
actual
income
distribution
rate,
which
reflects
the
Fund’s
past
dividends
paid
to
shareholders.
8.
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
(3/1/20–8/31/20)
Share
Class
Net
Investment
Income
A
$0.135482
A1
$0.144273
C
$0.112149
R6
$0.152096
Advisor
$0.150169
Total
Annual
Operating
Expenses
8
Share
Class
A
0.82%
Advisor
0.57%
Your
Fund’s
Expenses
Franklin
North
Carolina
Tax-Free
Income
Fund
44
franklintempleton.com
Semiannual
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
(
i
f
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
184/365
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
3/1/20
Ending
Account
Value
8/31/20
Expenses
Paid
During
Period
3/1/20–8/31/20
1,2
Ending
Account
Value
8/31/20
Expenses
Paid
During
Period
3/1/20–8/31/20
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$1,002.30
$4.12
$1,021.10
$4.15
0.82%
A1
$1,000
$1,003.10
$3.37
$1,021.84
$3.40
0.67%
C
$1,000
$1,000.30
$6.12
$1,019.09
$6.18
1.21%
R6
$1,000
$1,003.80
$2.70
$1,022.52
$2.72
0.53%
Advisor
$1,000
$1,003.60
$2.86
$1,022.35
$2.89
0.57%
45
franklintempleton.com
Semiannual
Report
Franklin
Virginia
Tax-Free
Income
Fund
This
semiannual
report
for
Franklin
Virginia
Tax-Free
Income
Fund
covers
the
period
ended
August
31,
2020
.
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
to
provide
as
high
a
level
of
income
exempt
from
federal
and
Virginia
personal
income
taxes
as
is
consistent
with
prudent
investment
management
and
preservation
of
capital
by
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
$11.42
on
February
29,
2020,
to
$11.24
on
August
31,
2020.
The
Fund’s
Class
A
shares
paid
dividends
totaling
11.8979
cents
per
share
for
the
same
period.
2
The
Performance
Summary
beginning
on
page
47
shows
that
at
the
end
of
this
reporting
period
the
Fund’s
Class
A
shares’
distribution
rate
was
1.95%,
based
on
an
annualization
of
August’s
1.8971
cents
per
share
monthly
dividend
and
the
maximum
offering
price
of
$11.68
on
August
31,
2020.
An
investor
in
the
2020
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
3.65%
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
six
months
under
review,
Virginia’s
economic
activity
was
significantly
curtailed
as
a
stay-at-home
order
was
issued
in
response
to
the
COVID-19
pandemic.
The
commonwealth's
unemployment
rate
rose
from
2.6%
in
February
2020
to
6.1%
at
period-end,
significantly
below
the
nation’s
8.4%
average.
3
Based
on
preliminary
estimates,
the
commonwealth
predicted
a
revenue
shortfall
in
fiscal
years
(FY)
2020
and
2021,
reflecting
Virginia’s
high
reliance
on
individual
income
taxes
and
recent
revenue
volatility.
It
suspended
all
new
spending
and
proposed
a
special
legislative
session
later
in
2020
to
assess
COVID-19’s
Credit
Quality
Composition
*
8/31/20
Ratings
%
of
Total
Investments
AAA
26.45%
AA
49.36%
A
5.34%
BBB
4.93%
Below
Investment
Grade
1.15%
Refunded
11.91%
Not
Rated
0.86%
*Securities,
except
for
those
labeled
Not
Rated,
are
assigned
ratings
by
one
or
more
Nationally
Recognized
Statistical
Credit
Rating
Organizations
(NRSROs),
such
as
Standard
&
Poor’s,
Moody’s
and
Fitch,
that
can
be
considered
by
the
investment
man-
ager
as
part
of
its
independent
securities
analysis.
When
ratings
from
multiple
agen-
cies
are
available,
the
highest
is
used,
consistent
with
the
portfolio
investment
process.
Ratings
reflect
an
NRSRO’s
opinion
of
an
issuer’s
creditworthiness
and
typically
range
from
AAA
(highest)
to
D
(lowest).
The
Below
Investment
Grade
category
consists
of
bonds
rated
below
BBB-.
The
Refunded
category
generally
consists
of
refunded
bonds
secured
by
U.S.
government
or
other
high-quality
securities
and
not
rerated
by
an
NRSRO.
The
Not
Rated
category
consists
of
ratable
securities
that
have
not
been
rated
by
an
NRSRO.
Cash
and
equivalents
are
excluded
from
this
composition.
Portfolio
Composition
8/31/20
%
of
Total
Investments
*
Refunded**
26.82%
Transportation
17.65%
Utilities
15.82%
Hospital
&
Health
Care
14.44%
General
Obligation
11.69%
Subject
to
Government
Appropriations
5.40%
Higher
Education
4.85%
Other
Revenue
1.72%
Housing
1.61%
*
Does
not
include
cash
and
cash
equivalents.
**
Includes
all
refunded
bonds;
the
percentage
may
differ
from
that
in
the
Credit
Quality
Composition.
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
estimated
tax-basis
net
investment
income
distributions
for
the
period
shown.
A
portion
or
all
of
the
distribution
may
be
reclassified
as
return
of
capital
or
short-term
or
long-term
capital
gains
once
final
tax
designations
are
known.
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:
Bureau
of
Labor
Statistics.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Statement
of
Investments
(SOI).
The
SOI
begins
on
page
121
.
Franklin
Virginia
Tax-Free
Income
Fund
46
franklintempleton.com
Semiannual
Report
impact
on
revenue
and
expenditures.
Virginia’s
net
tax-
supported
debt
was
$1,677
per
capita
and
2.8%
of
personal
income,
significantly
above
the
$1,071
and
2.0%
national
medians,
respectively.
4
The
independent
credit
rating
agency
Moody’s
Investor
Service
(Moody’s)
maintained
Virginia’s
general
obligation
bonds’
Aaa
rating
with
a
stable
outlook.
5
The
rating
reflected
the
commonwealth’s
history
of
conservative
fiscal
management
and
strong
debt
and
pension
management
practices,
leading
to
below
average
overall
liabilities.
The
stable
outlook
reflected
Moody’s
view
of
Virginia’s
strong
governance
and
financial
management
structure,
as
well
as
significant
federal
government
support
to
help
address
the
state’s
budgetary
imbalances
from
the
pandemic.
Manager’s
Discussion
We
used
various
investment
strategies
during
the
six
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
believe
our
conservative,
buy-and-hold
investment
strategy
can
help
us
achieve
high,
current,
tax-free
income
for
shareholders.
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
August
31,
2020,
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.
4.
Source:
Moody’s
Investors
Service,
State
government
–
U.S.:
Medians
–
State
debt
declined
in
2019,
but
likely
to
grow
in
coming
years
,
5/12/20.
5.
This
does
not
indicate
Moody’s
rating
of
the
Fund.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Performance
Summary
as
of
August
31,
2020
Franklin
Virginia
Tax-Free
Income
Fund
47
franklintempleton.com
Semiannual
Report
The
performance
tables
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
8/31/20
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
3.75%
and
the
minimum
is
0%.
Class
A
:
3.75%
maximum
initial
sales
charge;
Advisor
Class:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Share
Class
Cumulative
Total
Return
1
Average
Annual
Total
Return
2
–
A
3,4
6-Month
-0.52%
-4.25%
1-Year
+1.83%
-1.99%
5-Year
+15.06%
+2.06%
10-Year
+33.02%
+2.50%
Advisor
6-Month
-0.39%
-0.39%
1-Year
+2.09%
+2.09%
5-Year
+16.09%
+3.03%
10-Year
+34.81%
+3.03%
Share
Class
Distribution
Rate
5
Taxable
Equivalent
Distribution
Rate
6
30-Day
Standardized
Yield
7
Taxable
Equivalent
30-Day
Standardized
Yield
6
A
1.95%
3.65%
1.23%
2.30%
Advisor
2.28%
4.27%
1.53%
2.86%
See
page
48
for
Performance
Summary
footnotes.
Franklin
Virginia
Tax-Free
Income
Fund
Performance
Summary
48
franklintempleton.com
Semiannual
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.
Puerto
Rico
municipal
bonds
have
been
impacted
by
recent
adverse
economic
and
market
changes,
which
may
cause
the
Fund’s
share
price
to
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.
Unexpected
events
and
their
aftermaths,
such
as
the
spread
of
deadly
diseases;
natural,
environmental
or
man-made
disasters;
financial,
political
or
social
disruptions;
terrorism
and
war;
and
other
tragedies
or
catastrophes,
can
cause
investor
fear
and
panic,
which
can
adversely
affect
the
econo-
mies
of
many
companies,
sectors,
nations,
regions
and
the
market
in
general,
in
ways
that
cannot
necessarily
be
foreseen.
The
Fund’s
prospectus
also
includes
a
description
of
the
main
investment
risks.
1.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
2.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
3.
Effective
9/10/18,
Class
A
shares
closed
to
new
investors,
were
renamed
Class
A1
shares,
and
a
new
Class
A
share
with
a
different
expense
structure
became
available.
Class
A
performance
shown
has
been
calculated
as
follows:
(a)
for
periods
prior
to
9/10/18,
a
restated
figure
is
used
based
on
the
Fund’s
Class
A1
performance
that
includes
any
Rule
12b-1
rate
differential
that
exists
between
Class
A1
and
Class
A;
and
(b)
for
periods
after
9/10/18,
actual
Class
A
performance
is
used,
reflecting
all
charges
and
fees
applicable
to
that
class.
4.
Prior
to
3/1/19,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
4.25%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total
returns
(with
sales
charges)
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
3.75%.
5.
Distribution
rate
is
based
on
an
annualization
of
the
respective
class’s
August
dividend
and
the
maximum
offering
price
(NAV
for
Advisor
Class)
per
share
on
8/31/20.
6.
Taxable
equivalent
distribution
rate
and
yield
assume
the
published
rates
as
of
6/18/20
for
the
maximum
combined
effective
federal
and
Virginia
personal
income
tax
rate
of
46.55%,
based
on
the
federal
income
tax
rate
of
37.00%
plus
3.80%
Medicare
tax.
7.
The
Fund’s
30-day
standardized
yield
is
calculated
over
a
trailing
30-day
period
using
the
yield
to
maturity
on
bonds
and/or
the
dividends
accrued
on
stocks.
It
may
not
equal
the
Fund’s
actual
income
distribution
rate,
which
reflects
the
Fund’s
past
dividends
paid
to
shareholders.
8.
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
(3/1/20–8/31/20)
Share
Class
Net
Investment
Income
A
$0.118979
A1
$0.127444
C
$0.096577
R6
$0.135387
Advisor
$0.133115
Total
Annual
Operating
Expenses
8
Share
Class
A
0.84%
Advisor
0.59%
Your
Fund’s
Expenses
Franklin
Virginia
Tax-Free
Income
Fund
49
franklintempleton.com
Semiannual
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
184/365
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
3/1/20
Ending
Account
Value
8/31/20
Expenses
Paid
During
Period
3/1/20–8/31/20
1,2
Ending
Account
Value
8/31/20
Expenses
Paid
During
Period
3/1/20–8/31/20
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$994.80
$4.21
$1,020.98
$4.27
0.84%
A1
$1,000
$995.60
$3.47
$1,021.72
$3.52
0.69%
C
$1,000
$992.90
$6.21
$1,018.97
$6.29
1.24%
R6
$1,000
$996.30
$2.76
$1,022.44
$2.80
0.55%
Advisor
$1,000
$996.10
$2.97
$1,022.23
$3.01
0.59%
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Alabama
Tax-Free
Income
Fund
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
50
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
Year
Ended
February
28,
2019
b
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
..........................................
$11.40
$10.85
$10.79
Income
from
investment
operations
c
:
Net
investment
income
d
..................................................
0.15
0.30
0.15
Net
realized
and
unrealized
gains
(losses)
....................................
(0.11)
0.57
0.06
Total
from
investment
operations
.............................................
0.04
0.87
0.21
Less
distributions
from:
Net
investment
income
...................................................
(0.15)
(0.32)
(0.15)
Net
asset
value,
end
of
period
...............................................
$11.29
$11.40
$10.85
Total
return
e
............................................................
0.34%
8.08%
1.98%
Ratios
to
average
net
assets
f
Expenses
g
.............................................................
0.91%
0.91%
0.92%
Net
investment
income
....................................................
2.69%
2.70%
2.91%
Supplemental
data
Net
assets,
end
of
period
(000’s)
.............................................
$23,780
$16,423
$7,334
Portfolio
turnover
rate
.....................................................
8.47%
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
or
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Alabama
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
51
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
2019
2018
2017
2016
a
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$11.38
$10.84
$10.88
$11.16
$11.35
$11.55
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.16
0.32
0.33
0.35
0.39
0.42
Net
realized
and
unrealized
gains
(losses)
(0.11)
0.55
(0.04)
(0.27)
(0.20)
(0.20)
Total
from
investment
operations
........
0.05
0.87
0.29
0.08
0.19
0.22
Less
distributions
from:
Net
investment
income
..............
(0.16)
(0.33)
(0.33)
(0.36)
(0.38)
(0.42)
Net
asset
value,
end
of
period
..........
$11.27
$11.38
$10.84
$10.88
$11.16
$11.35
Total
return
d
.......................
0.42%
8.16%
2.76%
0.72%
1.69%
1.99%
Ratios
to
average
net
assets
e
Expenses
.........................
0.76%
f
0.76%
f
0.77%
f
0.74%
0.72%
0.71%
Net
investment
income
...............
2.85%
2.85%
3.06%
3.16%
3.38%
3.73%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$180,277
$186,486
$188,290
$208,340
$225,050
$228,212
Portfolio
turnover
rate
................
8.47%
4.87%
8.57%
14.66%
16.81%
10.70%
a
For
the
year
ended
February
29.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
or
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Alabama
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
52
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
2019
2018
2017
2016
a
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$11.54
$10.98
$11.02
$11.30
$11.49
$11.69
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.13
0.26
0.27
0.29
0.33
0.37
Net
realized
and
unrealized
gains
(losses)
(0.12)
0.57
(0.04)
(0.27)
(0.20)
(0.21)
Total
from
investment
operations
........
0.01
0.83
0.23
0.02
0.13
0.16
Less
distributions
from:
Net
investment
income
..............
(0.12)
(0.27)
(0.27)
(0.30)
(0.32)
(0.36)
Net
asset
value,
end
of
period
..........
$11.43
$11.54
$10.98
$11.02
$11.30
$11.49
Total
return
d
.......................
0.14%
7.68%
2.15%
0.16%
1.11%
1.41%
Ratios
to
average
net
assets
e
Expenses
.........................
1.31%
f
1.31%
f
1.32%
f
1.29%
1.27%
1.26%
Net
investment
income
...............
2.28%
2.30%
2.51%
2.61%
2.83%
3.18%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$25,628
$31,175
$30,641
$45,422
$55,619
$54,075
Portfolio
turnover
rate
................
8.47%
4.87%
8.57%
14.66%
16.81%
10.70%
a
For
the
year
ended
February
29.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
or
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Alabama
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
53
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
Year
Ended
February
28,
2018
b
2020
a
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
..............................
$11.39
$10.84
$10.88
$11.13
Income
from
investment
operations
c
:
Net
investment
income
d
......................................
0.17
0.33
0.35
0.22
Net
realized
and
unrealized
gains
(losses)
........................
(0.12)
0.57
(0.04)
(0.26)
Total
from
investment
operations
.................................
0.05
0.90
0.31
(0.04)
Less
distributions
from:
Net
investment
income
.......................................
(0.16)
(0.35)
(0.35)
(0.21)
Net
asset
value,
end
of
period
...................................
$11.28
$11.39
$10.84
$10.88
Total
return
e
................................................
0.48%
8.39%
2.78%
(0.26)%
Ratios
to
average
net
assets
f
Expenses
before
waiver
and
payments
by
affiliates
...................
0.64%
0.65%
0.65%
0.66%
Expenses
net
of
waiver
and
payments
by
affiliates
....................
0.63%
g
0.63%
g
0.63%
g
0.61%
Net
investment
income
........................................
2.98%
2.98%
3.20%
3.29%
Supplemental
data
Net
assets,
end
of
period
(000’s)
.................................
$1,893
$1,664
$824
$1,516
Portfolio
turnover
rate
.........................................
8.47%
4.87%
8.57%
14.66%
a
For
the
year
ended
February
29.
b
For
the
period
August
1,
2017
(effective
date)
to
February
28,
2018.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Alabama
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
54
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
Year
Ended
February
28,
2017
b
2020
a
2019
2018
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.................
$11.39
$10.84
$10.88
$11.16
$11.49
Income
from
investment
operations
c
:
Net
investment
income
d
.........................
0.17
0.33
0.34
0.36
0.18
Net
realized
and
unrealized
gains
(losses)
...........
(0.12)
0.56
(0.04)
(0.27)
(0.33)
Total
from
investment
operations
....................
0.05
0.89
0.30
0.09
(0.15)
Less
distributions
from:
Net
investment
income
..........................
(0.16)
(0.34)
(0.34)
(0.37)
(0.18)
Net
asset
value,
end
of
period
......................
$11.28
$11.39
$10.84
$10.88
$11.16
Total
return
e
...................................
0.47%
8.36%
2.86%
0.82%
(1.33)%
Ratios
to
average
net
assets
f
Expenses
.....................................
0.66%
g
0.66%
g
0.67%
g
0.64%
0.62%
Net
investment
income
...........................
2.94%
2.95%
3.16%
3.26%
3.48%
Supplemental
data
Net
assets,
end
of
period
(000’s)
....................
$13,965
$11,709
$8,335
$7,689
$5,149
Portfolio
turnover
rate
............................
8.47%
4.87%
8.57%
14.66%
16.81%
a
For
the
year
ended
February
29.
b
For
the
period
September
15,
2016
(effective
date)
to
February
28,
2017.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited),
August
31,
2020
Franklin
Alabama
Tax-Free
Income
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
55
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
98.4%
Alabama
97.9%
Alabama
Community
College
System
,
Bishop
State
Community
College
,
Revenue
,
2019
,
BAM
Insured
,
4
%
,
1/01/49
......................................
$
2,000,000
$
2,260,100
Alabama
Federal
Aid
Highway
Finance
Authority
,
Revenue
,
2017A
,
Refunding
,
5
%
,
6/01/37
.........................................................
4,130,000
5,159,278
Alabama
Highway
Finance
Corp.
,
Rebuild
Alabama
Act
Gasoline/Diesel
Tax
,
Revenue
,
2020
A
,
5
%
,
8/01/40
................................................
1,000,000
1,311,610
Alabama
Special
Care
Facilities
Financing
Authority-Birmingham
,
Ascension
Health
Credit
Group
,
Revenue
,
2016
B
,
Refunding
,
5
%
,
11/15/46
...................
3,000,000
3,521,370
Anniston
Public
Building
Authority
,
State
of
Alabama
Department
of
Human
Resources
,
Revenue
,
2011
,
Pre-Refunded
,
AGMC
Insured
,
5
%
,
3/01/43
..................
4,120,000
4,218,427
Auburn
University
,
Revenue
,
2015A
,
Refunding
,
5
%
,
6/01/33
...................
2,500,000
2,928,900
Baldwin
County
Board
of
Education
,
Revenue
,
2012
,
Pre-Refunded
,
5
%
,
6/01/24
..............................
2,605,000
2,821,528
Revenue
,
2012
,
Pre-Refunded
,
5
%
,
6/01/26
..............................
2,870,000
3,108,554
Revenue
,
2012
,
Pre-Refunded
,
5
%
,
6/01/27
..............................
3,015,000
3,265,607
Bessemer
Governmental
Utility
Services
Corp.
,
Water
,
Revenue
,
2017
,
Refunding
,
BAM
Insured
,
5
%
,
6/01/39
...........................................
6,000,000
7,277,280
Birmingham
Airport
Authority
,
Revenue
,
2020
,
Refunding
,
BAM
Insured
,
5
%
,
7/01/32
......................
300,000
387,525
Revenue
,
2020
,
Refunding
,
BAM
Insured
,
5
%
,
7/01/33
......................
325,000
417,280
Revenue
,
2020
,
Refunding
,
BAM
Insured
,
5
%
,
7/01/34
......................
400,000
511,840
Revenue
,
2020
,
Refunding
,
BAM
Insured
,
4
%
,
7/01/35
......................
350,000
408,874
Revenue
,
2020
,
Refunding
,
BAM
Insured
,
4
%
,
7/01/36
......................
500,000
581,350
Revenue
,
2020
,
Refunding
,
BAM
Insured
,
4
%
,
7/01/37
......................
545,000
631,257
Revenue
,
2020
,
Refunding
,
BAM
Insured
,
4
%
,
7/01/38
......................
400,000
461,720
Revenue
,
2020
,
Refunding
,
BAM
Insured
,
4
%
,
7/01/39
......................
2,540,000
2,922,549
Revenue
,
2020
,
Refunding
,
BAM
Insured
,
4
%
,
7/01/40
......................
705,000
808,755
Birmingham-Jefferson
Civic
Center
Authority
,
Special
Tax
,
2018
A
,
5
%
,
7/01/33
.....
1,605,000
1,777,778
Board
of
Water
&
Sewer
Commissioners
of
the
City
of
Mobile
,
Revenue
,
2014
,
Refunding
,
5
%
,
1/01/36
.............................................
10,000,000
10,930,500
Calhoun
County
Board
of
Education
,
Special
Tax
,
2016
,
BAM
Insured
,
5
%
,
2/01/46
..
6,000,000
6,866,820
City
of
Bessemer
,
Water
,
Revenue
,
2017
,
Refunding
,
AGMC
Insured
,
5
%
,
1/01/47
...
2,590,000
3,030,896
City
of
Birmingham
,
GO
,
2013-A
,
5
%
,
3/01/43
..............................
5,000,000
5,466,300
City
of
Homewood
,
GO
,
2012
,
Pre-Refunded
,
5
%
,
9/01/42
....................
4,000,000
4,383,360
City
of
Huntsville
,
GO
,
2018-B
,
5
%
,
5/01/38
............................................
4,775,000
5,951,894
Water
,
Revenue
,
2015
,
5
%
,
11/01/35
...................................
4,000,000
4,715,960
City
of
Lincoln
,
GO
,
2020
,
BAM
Insured
,
4
%
,
6/01/50
........................
3,500,000
4,077,290
City
of
Madison
,
GO
,
2015A
,
Pre-Refunded
,
5
%
,
4/01/37
.....................
2,590,000
3,148,637
City
of
Oxford
,
GO
,
2012
C
,
Pre-Refunded
,
5
%
,
10/01/29
.....................
1,435,000
1,576,362
City
of
Pelham
,
GO
,
2014
,
5
%
,
2/01/34
...................................
2,635,000
2,992,938
City
of
Phenix
City
,
GO
,
2014A
,
Pre-Refunded
,
5
%
,
8/01/43
...................
3,000,000
3,412,530
City
of
Trussville
,
GO
,
Pre-Refunded
,
5
%
,
10/01/39
......................................
3,000,000
3,433,185
GO
,
2018A
,
4
%
,
8/01/41
............................................
3,000,000
3,452,940
DCH
Healthcare
Authority
,
Revenue
,
2015
,
Refunding
,
5
%
,
6/01/36
..............
2,000,000
2,252,060
East
Alabama
Health
Care
Authority
(The)
,
Revenue
,
2018A
,
5
%
,
9/01/41
.........
3,000,000
3,580,650
Homewood
Educational
Building
Authority
,
Samford
University
,
Revenue
,
2013A
,
Pre-Refunded
,
AGMC
Insured
,
5
%
,
12/01/41
10,000,000
11,051,800
Samford
University
,
Revenue
,
2019
A
,
Refunding
,
4
%
,
12/01/49
...............
2,500,000
2,674,800
Infirmary
Health
System
Special
Care
Facilities
Financing
Authority
of
Mobile
,
Infirmary
Health
System
Obligated
Group
,
Revenue
,
2016A
,
5
%
,
2/01/41
...............
3,000,000
3,348,300
Jacksonville
State
University
,
Revenue
,
2017
,
Refunding
,
AGMC
Insured
,
5
%
,
12/01/36
...................
5,000,000
6,149,250
Revenue
,
2020
,
Refunding
,
4
%
,
12/01/50
................................
5,000,000
5,602,450
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Alabama
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
56
s
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Alabama
(continued)
Limestone
County
Water
&
Sewer
Authority
,
Revenue
,
2015-B
,
Pre-Refunded
,
BAM
Insured
,
5
%
,
12/01/43
..............................................
$
5,920,000
$
6,741,104
Madison
City
Board
of
Education
,
Special
Tax
,
2019
,
4
%
,
2/01/44
...............
3,000,000
3,535,110
Madison
Water
&
Wastewater
Board
,
Revenue
,
2017
,
Refunding
,
5
%
,
12/01/41
.....
4,610,000
5,554,958
Marshall
County
Board
of
Education
,
Special
Tax
,
2016
,
AGMC
Insured
,
4
%
,
3/01/41
1,000,000
1,091,910
Morgan
County
Board
of
Education
,
Revenue
,
2012
,
Pre-Refunded
,
5
%
,
3/01/35
..............................
4,300,000
4,686,269
Revenue
,
2012
,
Refunding
,
5
%
,
3/01/35
.................................
2,720,000
2,928,352
Opelika
Utilities
Board
,
Revenue
,
2017
,
Refunding
,
4
%
,
6/01/41
................
2,000,000
2,257,180
Oxford
City
Board
of
Education
,
Special
Tax
,
2020A
,
Refunding
,
4
%
,
5/01/50
......
2,500,000
2,911,750
Selma
Industrial
Development
Board
,
International
Paper
Co.
,
Revenue
,
2011A
,
5.375
%
,
12/01/35
............................................
3,000,000
3,143,430
State
of
Alabama
,
Docks
Department
,
Revenue
,
2010
,
Pre-Refunded
,
6
%
,
10/01/40
.
3,000,000
3,014,040
Talladega
County
Board
of
Education
,
Special
Tax
,
2017
,
Refunding
,
BAM
Insured
,
5
%
,
11/01/39
........................................................
2,000,000
2,384,500
Troy
Public
Educational
Building
Authority
,
Troy
City
Schools
,
Revenue
,
2011
,
Pre-Refunded
,
AGMC
Insured
,
5.25
%
,
12/01/40
1,705,000
1,726,142
Troy
City
Schools
,
Revenue
,
2011
,
Refunding
,
AGMC
Insured
,
5.25
%
,
12/01/40
...
295,000
297,826
Tuscaloosa
City
Board
of
Education
,
Revenue
,
2016
,
5
%
,
8/01/41
...............
4,000,000
4,798,640
Tuscaloosa
County
Board
of
Education
,
Special
Tax
,
2017
,
4
%
,
2/01/47
..........
5,000,000
5,496,800
UAB
Medicine
Finance
Authority
,
UAB
Medicine
Obligated
Group
,
Revenue
,
2016
B
,
Refunding
,
5
%
,
9/01/29
...........................................
5,000,000
6,106,850
University
of
Alabama
(The)
,
Revenue
,
2013-D2
,
5
%
,
10/01/37
......................................
7,520,000
8,365,549
Revenue
,
2018
B2
,
5
%
,
9/01/48
.......................................
5,000,000
6,115,850
University
of
Montevallo
,
Revenue
,
2017
,
Refunding
,
BAM
Insured
,
5
%
,
5/01/42
....
2,500,000
3,028,450
University
of
South
Alabama
,
Revenue
,
2019
A
,
BAM
Insured
,
5
%
,
4/01/49
........
2,000,000
2,421,380
Water
Works
Board
of
the
City
of
Birmingham
(The)
,
Revenue
,
2013B
,
Pre-Refunded
,
5
%
,
1/01/43
.............................
3,745,000
4,162,755
Revenue
,
2016
B
,
Refunding
,
5
%
,
1/01/43
...............................
10,000,000
12,066,100
Revenue,
Senior
Lien
,
2016
A
,
Refunding
,
4
%
,
1/01/35
.....................
4,000,000
4,581,400
240,296,849
U.S.
Territories
0.5%
Guam
0.5%
Guam
Government
Waterworks
Authority
,
Revenue
,
2020
A
,
5
%
,
1/01/50
.........
1,000,000
1,217,260
Total
Municipal
Bonds
(Cost
$
223,774,618
)
.....................................
241,514,109
a
a
a
a
a
Total
Investments
(Cost
$
223,774,618
)
98
.4
%
...................................
$241,514,109
Other
Assets,
less
Liabilities
1
.6
%
.............................................
4,028,410
Net
Assets
100.0%
...........................................................
$245,542,519
See
Abbreviations
on
page
159
.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Florida
Tax-Free
Income
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
57
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
Year
Ended
February
28,
2019
b
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
..........................................
$10.83
$10.44
$10.44
Income
from
investment
operations
c
:
Net
investment
income
d
..................................................
0.17
0.33
0.17
Net
realized
and
unrealized
gains
(losses)
....................................
(0.18)
0.41
—
e
Total
from
investment
operations
.............................................
(0.01)
0.74
0.17
Less
distributions
from:
Net
investment
income
...................................................
(0.16)
(0.35)
(0.17)
Net
asset
value,
end
of
period
...............................................
$10.66
$10.83
$10.44
Total
return
f
.............................................................
(0.05)%
7.18%
1.71%
Ratios
to
average
net
assets
g
Expenses
h
.............................................................
0.84%
0.85%
0.85%
Net
investment
income
....................................................
3.17%
3.16%
3.48%
Supplemental
data
Net
assets,
end
of
period
(000’s)
.............................................
$68,997
$56,214
$29,086
Portfolio
turnover
rate
.....................................................
11.67%
9.33%
10.03%
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
Amount
rounds
to
less
than
$0.01
per
share.
f
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
or
periods
less
than
one
year.
g
Ratios
are
annualized
for
periods
less
than
one
year.
h
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Florida
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
58
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
2019
2018
2017
2016
a
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$10.82
$10.43
$10.47
$10.88
$11.19
$11.38
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.18
0.35
0.38
0.39
0.43
0.45
Net
realized
and
unrealized
gains
(losses)
(0.18)
0.40
(0.04)
(0.39)
(0.31)
(0.20)
Total
from
investment
operations
........
—
0.75
0.34
—
0.12
0.25
Less
distributions
from:
Net
investment
income
..............
(0.17)
(0.36)
(0.38)
(0.41)
(0.43)
(0.44)
Net
asset
value,
end
of
period
..........
$10.65
$10.82
$10.43
$10.47
$10.88
$11.19
Total
return
d
.......................
0.03%
7.35%
3.36%
(0.02)%
1.05%
2.32%
Ratios
to
average
net
assets
e
Expenses
.........................
0.70%
f
0.70%
f
0.70%
f
0.67%
g
0.65%
0.64%
Net
investment
income
...............
3.34%
3.31%
3.63%
3.63%
3.82%
4.01%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$409,863
$437,316
$462,869
$536,099
$635,594
$689,641
Portfolio
turnover
rate
................
11.67%
9.33%
10.03%
10.10%
13.84%
5.17%
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,
and
is
not
annualized
or
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
g
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Florida
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
59
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
2019
2018
2017
2016
a
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$11.06
$10.66
$10.69
$11.10
$11.41
$11.59
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.15
0.30
0.33
0.34
0.37
0.39
Net
realized
and
unrealized
gains
(losses)
(0.18)
0.41
(0.03)
(0.40)
(0.32)
(0.19)
Total
from
investment
operations
........
(0.03)
0.71
0.30
(0.06)
0.05
0.20
Less
distributions
from:
Net
investment
income
..............
(0.14)
(0.31)
(0.33)
(0.35)
(0.36)
(0.38)
Net
asset
value,
end
of
period
..........
$10.89
$11.06
$10.66
$10.69
$11.10
$11.41
Total
return
d
.......................
(0.24)%
6.76%
2.81%
(0.58)%
0.46%
1.81%
Ratios
to
average
net
assets
e
Expenses
.........................
1.24%
f
1.25%
f
1.25%
f
1.22%
g
1.20%
1.19%
Net
investment
income
...............
2.75%
2.76%
3.08%
3.08%
3.27%
3.46%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$30,587
$35,481
$39,117
$73,237
$90,754
$88,734
Portfolio
turnover
rate
................
11.67%
9.33%
10.03%
10.10%
13.84%
5.17%
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,
and
is
not
annualized
or
periods
less
than
one
year..
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
g
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Florida
Tax-Free
Income
Fund
(continued)
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Semiannual
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The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
60
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
Year
Ended
February
28,
2018
b
2020
a
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
..............................
$10.85
$10.46
$10.49
$10.82
Income
from
investment
operations
c
:
Net
investment
income
d
......................................
0.18
0.37
0.39
0.24
Net
realized
and
unrealized
gains
(losses)
........................
(0.17)
0.40
(0.02)
(0.33)
Total
from
investment
operations
.................................
0.01
0.77
0.37
(0.09)
Less
distributions
from:
Net
investment
income
.......................................
(0.18)
(0.38)
(0.40)
(0.24)
Net
asset
value,
end
of
period
...................................
$10.68
$10.85
$10.46
$10.49
Total
return
e
................................................
0.10%
7.47%
3.57%
(0.88)%
Ratios
to
average
net
assets
f
Expenses
before
waiver
and
payments
by
affiliates
...................
0.58%
0.58%
0.58%
0.58%
Expenses
net
of
waiver
and
payments
by
affiliates
....................
0.56%
g
0.56%
g
0.56%
g
0.54%
Net
investment
income
........................................
3.45%
3.45%
3.77%
3.76%
Supplemental
data
Net
assets,
end
of
period
(000’s)
.................................
$4,391
$3,338
$2,343
$2,387
Portfolio
turnover
rate
.........................................
11.67%
9.33%
10.03%
10.10%
a
For
the
year
ended
February
29.
b
For
the
period
August
1,
2017
(effective
date)
to
February
28,
2018.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Florida
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
61
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
Year
Ended
February
28,
2017
b
2020
a
2019
2018
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.................
$10.85
$10.46
$10.49
$10.89
$11.23
Income
from
investment
operations
c
:
Net
investment
income
d
.........................
0.18
0.36
0.39
0.40
0.20
Net
realized
and
unrealized
gains
(losses)
...........
(0.17)
0.41
(0.03)
(0.38)
(0.34)
Total
from
investment
operations
....................
0.01
0.77
0.36
0.02
(0.14)
Less
distributions
from:
Net
investment
income
..........................
(0.18)
(0.38)
(0.39)
(0.42)
(0.20)
Net
asset
value,
end
of
period
......................
$10.68
$10.85
$10.46
$10.49
$10.89
Total
return
e
...................................
0.08%
7.44%
3.54%
0.17%
(1.25)%
Ratios
to
average
net
assets
f
Expenses
.....................................
0.60%
g
0.60%
g
0.60%
g
0.57%
h
0.55%
Net
investment
income
...........................
3.43%
3.41%
3.73%
3.73%
3.92%
Supplemental
data
Net
assets,
end
of
period
(000’s)
....................
$31,735
$31,477
$25,472
$20,467
$10,916
Portfolio
turnover
rate
............................
11.67%
9.33%
10.03%
10.10%
13.84%
a
For
the
year
ended
February
29.
b
For
the
period
September
15,
2016
(effective
date)
to
February
28,
2017.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
h
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited),
August
31,
2020
Franklin
Florida
Tax-Free
Income
Fund
franklintempleton.com
Semiannual
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
96.5%
Florida
95.8%
Brevard
County
Health
Facilities
Authority
,
Health
First,
Inc.
Obligated
Group
,
Revenue
,
2014
,
Refunding
,
5
%
,
4/01/39
........................................
$
5,000,000
$
5,513,700
Central
Florida
Expressway
Authority
,
Revenue,
Senior
Lien,
2016
B,
Refunding,
4%,
7/01/39
.....................
5,000,000
5,532,900
Revenue,
Senior
Lien,
2016
B,
Refunding,
4%,
7/01/40
.....................
5,825,000
6,433,596
Revenue,
Senior
Lien,
2019
B,
5%,
7/01/49
..............................
5,000,000
6,218,900
Citizens
Property
Insurance
Corp.
,
Revenue
,
2012A-1
,
5
%
,
6/01/22
.............
5,000,000
5,397,300
City
of
Atlantic
Beach
,
Naval
Continuing
Care
Retirement
Foundation
Obligated
Group
,
Revenue
,
2018
A
,
5
%
,
11/15/38
.......................................
1,105,000
1,203,069
City
of
Fort
Myers
,
Utility
System
,
Revenue
,
2019
A
,
Refunding
,
4
%
,
10/01/44
......
7,000,000
8,044,260
City
of
Gainesville
,
Utilities
System
,
Revenue
,
2019
A
,
5
%
,
10/01/47
.............
5,000,000
6,406,850
City
of
Jacksonville
,
Revenue,
2012,
Refunding,
5%,
10/01/30
................................
2,000,000
2,170,160
a
Revenue,
2020
A,
Refunding,
4%,
10/01/50
..............................
8,510,000
9,924,107
a
Genesis
Health,
Inc.
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
11/01/45
..
5,000,000
5,609,400
City
of
Lakeland
,
Lakeland
Regional
Health
Systems
Obligated
Group
,
Revenue
,
2015
,
5
%
,
11/15/45
.....................................................
12,300,000
13,688,670
City
of
Melbourne
,
Water
&
Sewer,
Revenue,
2000A,
FGIC
Insured,
ETM,
Zero
Cpn.,
10/01/26
......
1,500,000
1,446,345
Water
&
Sewer,
Revenue,
2002
B
,
Refunding,
NATL
Insured,
Zero
Cpn.,
10/01/22
.
1,785,000
1,766,739
Water
&
Sewer,
Revenue,
2002
B,
Refunding,
NATL
Insured,
Zero
Cpn.,
10/01/26
.
4,500,000
4,232,250
City
of
Miami
Beach
,
Stormwater
,
Revenue
,
2015
,
5
%
,
9/01/41
.................
10,000,000
11,884,300
City
of
South
Miami
Health
Facilities
Authority,
Inc.
,
Baptist
Health
South
Florida
Obligated
Group,
Revenue,
2017,
Refunding,
4%,
8/15/42
........................................................
5,000,000
5,554,200
Baptist
Health
South
Florida
Obligated
Group,
Revenue,
2017,
Refunding,
5
%,
8/15/42
........................................................
6,500,000
7,705,230
City
of
Sunrise
,
Utility
System
,
Revenue
,
1998
,
Pre-Refunded
,
AMBAC
Insured
,
5.2
%
,
10/01/22
........................................................
520,000
522,085
City
of
Tampa
,
H
Lee
Moffitt
Cancer
Center
&
Research
Institute
Obligated
Group,
Revenue,
2016
B,
Refunding,
5%,
7/01/37
.........................................
5,000,000
5,800,450
H
Lee
Moffitt
Cancer
Center
&
Research
Institute
Obligated
Group,
Revenue,
2020
B,
4%,
7/01/45
..................................................
4,150,000
4,667,671
Water
&
Wastewater
System,
Revenue,
2020
A,
4%,
10/01/48
................
7,500,000
9,105,825
Water
&
Wastewater
System,
Revenue,
2020
A,
5%,
10/01/54
................
5,000,000
6,565,300
Collier
County
Educational
Facilities
Authority
,
Hodges
University,
Inc.
,
Revenue
,
2013
,
5.625
%
,
11/01/28
..................................................
2,860,000
2,990,759
Collier
County
Industrial
Development
Authority
,
NCH
Healthcare
System,
Inc.
Obligated
Group
,
Revenue
,
2011
,
6.25
%
,
10/01/39
.........................
5,000,000
5,121,650
County
of
Broward
,
Port
Facilities
,
Revenue,
Senior
Lien
,
2019
B
,
4
%
,
9/01/44
.....
5,000,000
5,383,400
County
of
Miami-Dade
,
Aviation,
Revenue,
Pre-Refunded,
5.375%,
10/01/35
.......................
7,500,000
7,531,488
Aviation,
Revenue,
2014B,
Refunding,
5%,
10/01/37
.......................
10,000,000
11,341,600
Aviation,
Revenue,
2017B,
Refunding,
5%,
10/01/40
.......................
5,000,000
5,885,700
Seaport
Department,
Revenue,
2013A,
6%,
10/01/38
.......................
10,000,000
11,363,700
Transit
System,
Revenue,
2012,
Pre-Refunded,
5%,
7/01/42
.................
15,000,000
16,306,200
Transit
System,
Revenue,
2018,
5%,
7/01/43
.............................
10,000,000
12,298,500
Transit
System,
Revenue,
2018,
4%,
7/01/47
.............................
5,000,000
5,730,050
Water
&
Sewer
System,
Revenue,
2013A,
Pre-Refunded,
5%,
10/01/42
.........
10,000,000
10,996,100
Water
&
Sewer
System,
Revenue,
2019,
5%,
10/01/43
......................
5,000,000
6,261,050
Water
&
Sewer
System,
Revenue,
2019
B,
4%,
10/01/49
....................
4,000,000
4,715,200
County
of
Polk
,
Utility
System
,
Revenue
,
2020
,
Refunding
,
4
%
,
10/01/43
..........
4,600,000
5,565,540
Florida
Governmental
Utility
Authority
,
Revenue
,
2010
,
Pre-Refunded
,
5.25
%
,
10/01/40
5,000,000
5,268,450
Florida
Higher
Educational
Facilities
Financial
Authority
,
Nova
Southeastern
University,
Inc.,
Revenue,
2011,
Pre-Refunded,
6.375%,
4/01/31
2,750,000
2,846,662
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Florida
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
63
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Florida
(continued)
Florida
Higher
Educational
Facilities
Financial
Authority,
(continued)
Rollins
College,
Revenue,
2010,
Pre-Refunded,
5%,
12/01/37
................
$
10,000,000
$
10,117,800
University
of
Tampa,
Inc.
(The),
Revenue,
2012A,
Pre-Refunded,
5.25%,
4/01/42
..
2,000,000
2,156,640
Florida
Housing
Finance
Corp.
,
Revenue
,
2020
1
,
GNMA
Insured
,
2.75
%
,
7/01/50
...
2,000,000
2,057,180
Florida
Municipal
Loan
Council
,
Revenue
,
2011D
,
AGMC
Insured
,
5.5
%
,
10/01/41
...
3,750,000
3,943,350
Fort
Pierce
Utilities
Authority
,
Revenue,
1999
B,
AMBAC
Insured,
Zero
Cpn.,
10/01/20
....................
3,090,000
3,088,578
Revenue,
1999
B,
AMBAC
Insured,
Zero
Cpn.,
10/01/21
....................
2,585,000
2,567,474
Revenue,
1999
B,
AMBAC
Insured,
Zero
Cpn.,
10/01/22
....................
3,090,000
3,045,751
Revenue,
1999
B,
AMBAC
Insured,
Zero
Cpn.,
10/01/23
....................
3,060,000
2,987,815
Revenue,
1999
B,
AMBAC
Insured,
Zero
Cpn.,
10/01/24
....................
2,560,000
2,473,805
Greater
Orlando
Aviation
Authority
,
Revenue,
2010A,
5%,
10/01/39
.......................................
5,000,000
5,015,950
Revenue,
2019
A,
4%,
10/01/49
.......................................
5,000,000
5,575,050
Halifax
Hospital
Medical
Center
,
Halifax
Hospital
Medical
Center
Obligated
Group,
Revenue,
2015,
Refunding,
5%,
6/01/46
........................................................
4,250,000
4,705,770
Halifax
Hospital
Medical
Center
Obligated
Group,
Revenue,
2016,
Refunding,
5%,
6/01/36
........................................................
2,500,000
2,877,400
Herons
Glen
Recreation
District
,
Special
Assessment,
2020,
Refunding,
BAM
Insured,
4%,
5/01/45
.............
1,515,000
1,682,407
Special
Assessment,
2020,
Refunding,
BAM
Insured,
4%,
5/01/50
.............
1,350,000
1,506,020
Hillsborough
County
Aviation
Authority
,
Revenue,
2015A,
5%,
10/01/44
.......................................
5,000,000
5,549,400
Revenue,
2018E,
5%,
10/01/43
.......................................
5,000,000
5,989,100
JEA
Water
&
Sewer
System
,
Revenue
,
2020
A
,
Refunding
,
4
%
,
10/01/40
.........
1,000,000
1,183,460
Lee
County
Industrial
Development
Authority
,
Shell
Point/Alliance
Obligated
Group
,
Revenue
,
2019
,
5
%
,
11/15/44
........................................
5,000,000
5,424,000
Martin
County
Health
Facilities
Authority
,
Martin
Memorial
Medical
Center
Obligated
Group
,
Revenue
,
2012
,
Pre-Refunded
,
5.5
%
,
11/15/42
......................
2,100,000
2,233,098
Miami
Beach
Redevelopment
Agency
,
Tax
Allocation
,
2015A
,
Refunding
,
AGMC
Insured
,
5
%
,
2/01/40
...............................................
5,000,000
5,715,500
Miami-Dade
County
Expressway
Authority
,
Revenue
,
A
,
5
%
,
7/01/40
.............
18,770,000
18,823,119
Miami-Dade
County
Health
Facilities
Authority
,
Nicklaus
Children's
Hospital
Obligated
Group,
Revenue,
2017,
Refunding,
5%,
8/01/42
........................................................
3,000,000
3,543,060
Nicklaus
Children's
Hospital
Obligated
Group,
Revenue,
2017,
Refunding,
4%,
8/01/47
........................................................
3,500,000
3,836,350
Nicklaus
Children's
Hospital
Obligated
Group,
Revenue,
A,
Refunding,
6.125%,
8/01/42
........................................................
1,055,000
1,058,640
Mid-Bay
Bridge
Authority
,
Revenue,
2015A,
Refunding,
5%,
10/01/40
..............................
5,000,000
5,619,050
Revenue,
A,
ETM,
6.875%,
10/01/22
...................................
3,905,000
4,168,392
Revenue,
D,
ETM,
6.1%,
10/01/22
.....................................
3,545,000
3,850,260
North
Sumter
County
Utility
Dependent
District
,
Revenue,
2010,
5.75%,
10/01/43
......................................
5,000,000
5,022,450
Revenue,
Senior
Lien,
2019,
BAM
Insured,
5%,
10/01/44
....................
4,000,000
4,949,920
Orange
County
Health
Facilities
Authority
,
Orlando
Health
Obligated
Group,
Revenue,
2012A,
5%,
10/01/42
..............
10,000,000
10,481,600
Orlando
Health
Obligated
Group,
Revenue,
2019
A,
5%,
10/01/47
.............
5,000,000
6,075,900
Presbyterian
Retirement
Communities,
Inc.
Obligated
Group,
Revenue,
2016,
Refunding,
5%,
8/01/41
............................................
5,000,000
5,464,750
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Florida
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Semiannual
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)
Orlando-Orange
County
Expressway
Authority
,
Central
Florida
Expressway
Authority
,
Revenue
,
2013A
,
Refunding
,
5
%
,
7/01/35
...............................
$
8,330,000
$
9,211,314
Palm
Beach
County
Health
Facilities
Authority
,
ACTS
Retirement-Life
Communities,
Inc.
Obligated
Group,
Revenue,
2020B,
4%,
11/15/41
.......................................................
500,000
551,155
ACTS
Retirement-Life
Communities,
Inc.
Obligated
Group,
Revenue,
2020B,
5%,
11/15/42
.......................................................
500,000
593,350
Lifespace
Communities,
Inc.
Obligated
Grou
p,
Revenue,
2016
B,
5%,
5/15/41
....
5,000,000
5,291,600
Sarasota
County
Health
Facilities
Authority
,
Southwest
Florida
Retirement
Center,
Inc.
Obligated
Group,
Revenue,
2017A,
5%,
1/01/37
........................................................
2,350,000
2,513,348
Southwest
Florida
Retirement
Center,
Inc.
Obligated
Group,
Revenue,
2017A,
5%,
1/01/42
........................................................
1,600,000
1,701,280
Southwest
Florida
Retirement
Center,
Inc.
Obligated
Group,
Revenue,
2017A,
5%,
1/01/47
........................................................
2,450,000
2,597,123
Sunnyside
Village
Obligated
Group,
Revenue,
2018,
5%,
5/15/33
..............
600,000
654,246
Sunnyside
Village
Obligated
Group,
Revenue,
2018,
5%,
5/15/38
..............
1,025,000
1,106,467
Sunnyside
Village
Obligated
Group,
Revenue,
2018,
5%,
5/15/48
..............
1,850,000
1,972,76
6
Sarasota
County
Public
Hospital
District
,
Sarasota
County
Public
Hospital
District
Obligated
Group
,
Revenue
,
2018
,
4
%
,
7/01/48
............................
10,000,000
11,144,600
School
Board
of
Miami-Dade
County
(The)
,
GO
,
2013
,
5
%
,
3/15/43
..............
2,465,000
2,698,337
State
of
Florida
,
GO,
1999
D,
Refunding,
6%,
6/01/23
...................................
15,000,000
17,393,100
GO,
2016
C,
Refunding,
4%,
6/01/35
...................................
5,340,000
6,173,521
GO,
2016
F,
Refunding,
4%,
6/01/37
...................................
8,000,000
9,198,560
Tampa
Bay
Water
,
Revenue
,
2013
,
5
%
,
10/01/38
...........................
10,000,000
11,394,900
Tampa
Sports
Authority
,
Revenue,
1995,
NATL
Insured,
6.05%,
10/01/20
...........................
190,000
190,768
Revenue,
1995,
NATL
Insured,
6.1%,
10/01/26
............................
2,695,000
3,152,934
Tampa-Hillsborough
County
Expressway
Authority
,
Revenue
,
2017
,
5
%
,
7/01/47
....
5,000,000
5,989,150
Town
of
Palm
Beach
,
GO
,
2018
,
4
%
,
7/01/43
..............................
5,000,000
5,786,100
University
of
North
Florida
Financing
Corp.
(The)
,
Revenue
,
2016
,
Refunding
,
AGMC
Insured
,
5
%
,
11/01/35
..............................................
5,000,000
5,975,650
Volusia
County
Educational
Facility
Authority
,
Embry-Riddle
Aeronautical
University,
Inc.,
Revenue,
2017,
Refunding,
5%,
10/15/42
1,500,000
1,789,185
Embry-Riddle
Aeronautical
University,
Inc.,
Revenue,
2017,
Refunding,
5%,
10/15/47
3,500,000
4,147,290
Embry-Riddle
Aeronautical
University,
Inc.,
Revenue,
2020A,
Refunding,
5%,
10/15/49
.......................................................
3,000,000
3,659,550
522,674,689
U.S.
Territories
0.7%
Puerto
Rico
0.7%
Puerto
Rico
Industrial
Tourist
Educational
Medical
&
Environmental
Control
Facilities
Financing
Authority
,
AES
Puerto
Rico
LP
,
Revenue
,
2000A
,
6.625
%
,
6/01/26
.....
3,900,000
4,036,500
Total
Municipal
Bonds
(Cost
$491,289,650)
.....................................
526,711,189
a
a
a
a
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Florida
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
65
s
Short
Term
Investments
4.8%
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
4.8%
Florida
4.8%
b
City
of
Jacksonville
,
Florida
Power
&
Light
Co.
,
Revenue
,
1995
,
Refunding
,
Daily
VRDN
and
Put
,
0.06
%
,
5/01/29
.......................................
$
2,200,000
$
2,200,000
b
County
of
Martin
,
Florida
Power
&
Light
Co.
,
Revenue
,
2000
,
Refunding
,
Daily
VRDN
and
Put
,
0.08
%
,
7/15/22
.............................................
7,900,000
7,900,000
b
County
of
St.
Lucie
,
Florida
Power
&
Light
Co.
,
Revenue
,
2000
,
Refunding
,
Daily
VRDN
and
Put
,
0.05
%
,
9/01/28
.......................................
16,300,000
16,300,000
26,400,000
Total
Municipal
Bonds
(Cost
$26,400,000)
......................................
26,400,000
Total
Short
Term
Investments
(Cost
$26,400,000
)
................................
26,400,000
a
Total
Investments
(Cost
$517,689,650)
101.3%
..................................
$553,111,189
Other
Assets,
less
Liabilities
(1
.3)%
...........................................
(7,537,826)
Net
Assets
100.0%
...........................................................
$545,573,363
See
Abbreviations
on
page
159
.
a
Security
purchased
on
a
when-issued
basis.
See
Note
1(b).
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
Georgia
Tax-Free
Income
Fund
franklintempleton.com
Semiannual
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The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
66
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
Year
Ended
February
28,
2019
b
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
..........................................
$12.19
$11.59
$11.57
Income
from
investment
operations
c
:
Net
investment
income
d
..................................................
0.16
0.32
0.17
Net
realized
and
unrealized
gains
(losses)
....................................
(0.22)
0.63
0.02
Total
from
investment
operations
.............................................
(0.06)
0.95
0.19
Less
distributions
from:
Net
investment
income
...................................................
(0.15)
(0.35)
(0.17)
Net
asset
value,
end
of
period
...............................................
$11.98
$12.19
$11.59
Total
return
e
............................................................
(0.44)%
8.27%
1.70%
Ratios
to
average
net
assets
f
Expenses
g
.............................................................
0.86%
0.86%
0.87%
Net
investment
income
....................................................
2.60%
2.76%
3.10%
Supplemental
data
Net
assets,
end
of
period
(000’s)
.............................................
$69,124
$54,945
$19,705
Portfolio
turnover
rate
.....................................................
10.76%
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
or
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
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accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
67
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
2019
2018
2017
2016
a
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$12.19
$11.59
$11.65
$11.99
$12.32
$12.46
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.16
0.35
0.38
0.39
0.42
0.45
Net
realized
and
unrealized
gains
(losses)
(0.21)
0.61
(0.06)
(0.33)
(0.33)
(0.14)
Total
from
investment
operations
........
(0.05)
0.96
0.32
0.06
0.09
0.31
Less
distributions
from:
Net
investment
income
..............
(0.16)
(0.36)
(0.38)
(0.40)
(0.42)
(0.45)
Net
asset
value,
end
of
period
..........
$11.98
$12.19
$11.59
$11.65
$11.99
$12.32
Total
return
d
.......................
(0.37)%
8.44%
2.83%
0.46%
0.69%
2.56%
Ratios
to
average
net
assets
e
Expenses
.........................
0.71%
f
0.71%
f
0.72%
f
0.69%
g
0.67%
0.67%
Net
investment
income
...............
2.76%
2.91%
3.25%
3.25%
3.36%
3.67%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$284,060
$309,436
$313,940
$363,390
$428,301
$429,103
Portfolio
turnover
rate
................
10.76%
13.23%
11.78%
9.33%
8.34%
4.92%
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,
and
is
not
annualized
or
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
g
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)
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The
accompanying
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are
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integral
part
of
these
financial
statements.
68
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
2019
2018
2017
2016
a
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$12.38
$11.77
$11.83
$12.16
$12.49
$12.63
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.13
0.29
0.32
0.33
0.35
0.39
Net
realized
and
unrealized
gains
(losses)
(0.22)
0.62
(0.06)
(0.33)
(0.33)
(0.15)
Total
from
investment
operations
........
(0.09)
0.91
0.26
—
0.02
0.24
Less
distributions
from:
Net
investment
income
..............
(0.13)
(0.30)
(0.32)
(0.33)
(0.35)
(0.38)
Net
asset
value,
end
of
period
..........
$12.16
$12.38
$11.77
$11.83
$12.16
$12.49
Total
return
d
.......................
(0.71)%
7.84%
2.22%
(0.02)%
0.12%
1.97%
Ratios
to
average
net
assets
e
Expenses
.........................
1.25%
f
1.26%
f
1.27%
f
1.24%
g
1.22%
1.22%
Net
investment
income
...............
2.19%
2.36%
2.70%
2.70%
2.81%
3.12%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$50,890
$62,426
$72,542
$109,722
$128,544
$126,117
Portfolio
turnover
rate
................
10.76%
13.23%
11.78%
9.33%
8.34%
4.92%
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,
and
is
not
annualized
or
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
g
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)
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part
of
these
financial
statements.
Semiannual
Report
69
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
Year
Ended
February
28,
2018
b
2020
a
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
..............................
$12.20
$11.59
$11.66
$11.94
Income
from
investment
operations
c
:
Net
investment
income
d
......................................
0.17
0.36
0.39
0.24
Net
realized
and
unrealized
gains
(losses)
........................
(0.22)
0.63
(0.06)
(0.29)
Total
from
investment
operations
.................................
(0.05)
0.99
0.33
(0.05)
Less
distributions
from:
Net
investment
income
.......................................
(0.17)
(0.38)
(0.40)
(0.23)
Net
asset
value,
end
of
period
...................................
$11.98
$12.20
$11.59
$11.66
Total
return
e
................................................
(0.38)%
8.67%
2.86%
(0.40)%
Ratios
to
average
net
assets
f
Expenses
before
waiver
and
payments
by
affiliates
...................
0.58%
0.59%
0.59%
4.47%
Expenses
net
of
waiver
and
payments
by
affiliates
....................
0.56%
g
0.57%
g
0.57%
g
0.55%
Net
investment
income
........................................
2.90%
3.05%
3.40%
3.39%
Supplemental
data
Net
assets,
end
of
period
(000’s)
.................................
$5,022
$4,981
$3,786
$5
Portfolio
turnover
rate
.........................................
10.76%
13.23%
11.78%
9.33%
a
For
the
year
ended
February
29.
b
For
the
period
August
1,
2017
(effective
date)
to
February
28,
2018.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Georgia
Tax-Free
Income
Fund
(continued)
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The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
70
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
Year
Ended
February
28,
2017
b
2020
a
2019
2018
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.................
$12.20
$11.59
$11.66
$11.99
$12.41
Income
from
investment
operations
c
:
Net
investment
income
d
.........................
0.17
0.36
0.39
0.40
0.20
Net
realized
and
unrealized
gains
(losses)
...........
(0.22)
0.63
(0.07)
(0.32)
(0.43)
Total
from
investment
operations
....................
(0.05)
0.99
0.32
0.08
(0.23)
Less
distributions
from:
Net
investment
income
..........................
(0.17)
(0.38)
(0.39)
(0.41)
(0.19)
Net
asset
value,
end
of
period
......................
$11.98
$12.20
$11.59
$11.66
$11.99
Total
return
e
...................................
(0.40)%
8.63%
2.83%
0.64%
(1.82)%
Ratios
to
average
net
assets
f
Expenses
.....................................
0.61%
g
0.61%
g
0.62%
g
0.59%
h
0.57%
Net
investment
income
...........................
2.85%
3.01%
3.35%
3.35%
3.46%
Supplemental
data
Net
assets,
end
of
period
(000’s)
....................
$64,078
$53,789
$40,142
$35,389
$21,454
Portfolio
turnover
rate
............................
10.76%
13.23%
11.78%
9.33%
8.34%
a
For
the
year
ended
February
29.
b
For
the
period
September
15,
2016
(effective
date)
to
February
28,
2017.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
h
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited),
August
31,
2020
Franklin
Georgia
Tax-Free
Income
Fund
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part
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statements.
Semiannual
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71
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
99.6%
Georgia
98.9%
Athens
Housing
Authority
,
UGAREF
East
Campus
Housing
Phase
II
LLC,
Revenue,
2017,
Refunding,
5%,
6/15/36
........................................................
$
2,390,000
$
2,842,475
UGAREF
East
Campus
Housing
Phase
II
LLC,
Revenue,
2017,
Refunding,
4%,
6/15/40
........................................................
5,000,000
5,575,850
Athens-Clarke
County
Unified
Government
,
GO,
2020,
4%,
12/01/29
.............................................
1,220,000
1,556,159
GO,
2020,
4%,
12/01/30
.............................................
1,350,000
1,745,739
Atlanta
&
Fulton
County
Recreation
Authority
,
City
of
Atlanta
Park
Tax
,
Revenue
,
2014
A
,
Refunding
,
5
%
,
12/01/35
..........................................
3,530,000
4,134,301
Atlanta
Development
Authority
(The)
,
Revenue,
2015A-1,
5.25%,
7/01/40
....................................
7,750,000
8,478,345
Revenue,
2015A-1
,
5.25%,
7/01/44
....................................
3,000,000
3,262,560
Piedmont
Ellis
LLC,
Revenue,
2013,
Pre-Refunded,
5%,
9/01/32
..............
2,000,000
2,278,980
Tuff
Yamacraw
LLC,
Revenue,
2005
A,
Refunding,
AMBAC
Insured,
5%,
1/01/26
..
2,555,000
2,999,008
a
Auburn
Urban
Redevelopment
Agency
,
City
of
Auburn,
Revenue,
2020,
BAM
Insured,
4%,
10/01/45
..................
1,000,000
1,176,270
City
of
Auburn,
Revenue,
2020,
BAM
Insured,
4%,
10/01/50
..................
1,000,000
1,169,370
Bainbridge
Public
Facilities
Authority
,
County
of
Decatur
,
Revenue
,
2018
,
AGMC
Insured
,
4
%
,
3/01/43
...............................................
4,000,000
4,589,000
b
Baldwin
County
Hospital
Authority
,
Oconee
Regional
Medical
Center
Obligated
Group,
Revenue,
1998,
5.25%,
12/01/22
2,500,000
25
Oconee
Regional
Medical
Center
Obligated
Group,
Revenue,
1998,
5.375%,
12/01/28
.......................................................
2,000,000
20
Bartow-Cartersville
Joint
Development
Authority
,
GHC
Student
Center
LLC
,
Revenue
,
2011
,
AGMC
Insured
,
5
%
,
6/15/36
.....................................
4,155,000
4,274,124
Bibb
County
Development
Authority
,
Macon
State
College
Foundation
Real
Estate
LLC
,
Revenue
,
2012
,
AGMC
Insured
,
5
%
,
7/01/40
.............................
5,000,000
5,275,850
Bleckley
County
School
District
,
GO
,
2020
,
5
%
,
10/01/42
.....................
2,055,000
2,687,056
Brookhaven
Development
Authority
,
Children's
Healthcare
of
Atlanta
Obligated
Group
,
Revenue
,
2019
A
,
4
%
,
7/01/49
........................................
6,000,000
6,781,440
Carroll
City-County
Hospital
Authority
,
Tanner
Medical
Center
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
7/01/45
.
1,250,000
1,450,700
Tanner
Medical
Center
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
7/01/50
.
1,500,000
1,730,505
Tanner
Medical
Center,
Inc.
Obligated
Group,
Revenue,
2015,
5%,
7/01/41
......
2,000,000
2,313,880
Carrollton
Payroll
Development
Authority
,
UWG
Athletic
Complex
LLC
,
Revenue
,
2014
,
Refunding
,
AGMC
Insured
,
5
%
,
6/15/37
.................................
3,140,000
3,612,915
City
of
Atlanta
,
Tax
Allocation,
2016B,
Refunding,
5%,
1/01/31
............................
1,780,000
2,116,740
Airport
Passenger
Facility
Charge,
Revenue,
Sub.
Lien,
2014A,
Refunding,
5%,
1/01/33
........................................................
4,005,000
4,499,778
Airport
Passenger
Facility
Charge,
Revenue,
Sub.
Lien,
2014A,
Refunding,
5%,
1/01/34
........................................................
3,250,000
3,644,713
Airport
Passenger
Facility
Charge
,
Revenue,
Sub.
Lien,
2019
D,
4%,
7/01/36
.....
4,500,000
5,172,300
Department
of
Aviation,
Revenue,
2010C,
Refunding,
6%,
1/01/30
.............
6,000,000
6,107,160
Department
of
Aviation,
Revenue,
2012B,
5%,
1/01/42
......................
2,000,000
2,092,000
Water
&
Wastewater,
Revenue,
2001A,
AGMC,
NATL
RE
Insured,
5.5%,
11/01/27
.
5,000,000
6,272,650
Water
&
Wastewater,
Revenue,
2015,
Refunding,
5%,
11/01/43
...............
10,000,000
11,715,800
Water
&
Wastewater,
Revenue,
2018
B,
Refunding,
5%,
11/01/47
..............
5,000,000
6,172,350
Water
&
Wastewater,
Revenue,
2019,
Refunding,
4%,
11/01/38
...............
1,450,000
1,755,776
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Georgia
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Semiannual
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)
Georgia
(continued)
City
of
Buford
,
GO
,
2017
C
,
Refunding
,
4
%
,
1/01/43
.........................
$
5,000,000
$
5,661,850
City
of
Cartersville
,
Revenue
,
2018
,
Refunding
,
5
%
,
6/01/48
...................
4,000,000
4,928,960
City
of
Columbus
,
Water
&
Sewerage
,
Revenue
,
2014A
,
Pre-Refunded
,
5
%
,
5/01/33
.
1,030,000
1,207,088
City
of
Dalton
,
GO
,
2018
,
5
%
,
2/01/48
....................................
3,000,000
3,667,200
City
of
Fairburn
,
GO
,
2011
,
Pre-Refunded
,
AGMC
Insured
,
5.75
%
,
12/01/31
.......
2,000,000
2,138,720
Clayton
County
Development
Authority
,
CSU
Foundation
Real
Estate
II
LLC,
Revenue,
2011,
AGMC
Insured,
5%,
7/01/36
.
3,000,000
3,079,860
TUFF
Archives
LLC,
Revenue,
2012,
Refunding,
5%,
7/01/33
.................
5,000,000
5,374,150
County
of
DeKalb
,
Water
&
Sewerage,
Revenue,
2006
B,
Refunding,
AGMC
Insured,
5%,
10/01/35
..
10,655,000
12,895,853
Water
&
Sewerage,
Revenue,
Junior
Lien,
2011A,
5.25%,
10/01/41
............
11,425,000
11,927,586
County
of
Fulton
,
GO,
2017,
4%,
7/01/40
.............................................
5,000,000
5,739,600
Water
&
Sewerage,
Revenue,
2020A,
3%,
1/01/45
.........................
5,000,000
5,429,400
Coweta
County
Water
&
Sewage
Authority
,
Revenue
,
2019
,
Refunding
,
4
%
,
6/01/39
.
1,500,000
1,779,600
Dalton
Whitfield
County
Joint
Development
Authority
,
Hamilton
Health
Care
System
Obligated
Group
,
Revenue
,
2017
,
4
%
,
8/15/41
............................
3,000,000
3,372,600
Decatur
Urban
Redevelopment
Agency
,
Revenue
,
2013A
,
5
%
,
1/01/38
...........
6,195,000
6,753,417
DeKalb
Newton
&
Gwinnett
Counties
Joint
Development
Authority
,
GGCF
Athletic
Fields
LLC
,
Revenue
,
2012A
,
AGMC
Insured
,
5
%
,
7/01/39
...................
5,000,000
5,374,150
Development
Authority
for
Fulton
County
,
AMC
Campus
Project
I
LLC,
Revenue,
2011,
AGMC
Insured,
5%,
6/15/37
.......
3,075,000
3,167,834
Georgia
Tech
Facilities,
Inc.,
Revenue,
2010A,
5%,
6/01/41
..................
3,500,000
3,510,535
Georgia
Tech
Facilities,
Inc.,
Revenue,
2018,
4%,
3/01/43
...................
2,000,000
2,242,480
Piedmont
Healthcare,
Inc.
Obligated
Group,
Revenue,
2014A,
Refunding,
5%,
7/01/44
........................................................
10,000,000
11,083,000
Piedmont
Healthcare,
Inc.
Obligated
Group,
Revenue,
2019
A,
4%,
7/01/49
......
5,000,000
5,629,950
WellStar
Health
System
Obligated
Group,
Revenue,
2017,
5%,
4/01/47
.........
1,000,000
1,177,010
WellStar
Health
System
Obligated
Group
,
Revenue,
2020
A,
4%,
4/01/50
........
4,000,000
4,568,240
Development
Authority
of
Bulloch
County
,
Georgia
Southern
University
Housing
Foundation
Five
LLC
,
Revenue
,
2011
,
AGMC
Insured
,
5
%
,
7/01/36
............
2,055,000
2,111,081
Development
Authority
of
Burke
County
(The)
,
Oglethorpe
Power
Corp.
,
Revenue
,
2017
,
Refunding
,
4.125
%
,
11/01/45
....................................
6,000,000
6,697,680
Development
Authority
of
Cobb
County
(The)
,
Georgia
Tech
Cobb
Research
Campus
LLC,
Revenue,
2017
A,
4%,
6/01/42
......
1,600,000
1,762,624
Kennesaw
State
University
Real
Estate
Obligated
Group
2015
ABC,
Revenue,
Senior
Lien,
2015A,
Refunding,
5%,
7/15/38
.................................
2,000,000
2,270,680
KSU
SRAC
Real
Estate
Foundation
LLC,
Revenue,
2013,
5%,
7/15/35
..........
2,500,000
2,698,300
KSU
SRAC
Real
Estate
Foundation
LLC,
Revenue,
2013,
5%,
7/15/38
..........
2,500,000
2,692,450
Development
Authority
of
Gwinnett
County
,
Gwinnett
County
School
District,
COP,
2006,
NATL
Insured,
5.25%,
1/01/22
......
3,000,000
3,203,280
Gwinnett
County
School
District,
COP,
2006,
NATL
Insured,
5.25%,
1/01/24
......
2,000,000
2,331,900
Downtown
Savannah
Authority
,
County
of
Chatham
,
Revenue
,
2020
,
5
%
,
6/01/32
...
2,000,000
2,451,040
Etowah
Water
&
Sewer
Authority
,
Revenue,
2019,
Refunding,
BAM
Insured,
4%,
3/01/36
......................
1,450,000
1,684,755
Revenue,
2019,
Refunding,
BAM
Insured,
3%,
3/01/44
......................
1,250,000
1,300,962
Floyd
County
Hospital
Authority
,
Floyd
Obligated
Group
,
Revenue
,
2016
,
Refunding
,
4
%
,
7/01/43
......................................................
7,735,000
8,526,213
Forsyth
County
School
District
,
GO
,
2018
,
5
%
,
2/01/38
.......................
2,650,000
3,352,595
Fulton
County
Residential
Care
Facilities
for
the
Elderly
Authority
,
Lenbrook
Square
Foundation
Obligated
Group
,
Revenue
,
2016
,
Refunding
,
5
%
,
7/01/42
..........
6,000,000
6,258,240
Gainesville
&
Hall
County
Hospital
Authority
,
Northeast
Georgia
Health
System
Obligated
Group,
Revenue,
2017A,
Refunding,
5%,
2/15/42
....................................................
7,000,000
8,208,970
Northeast
Georgia
Health
System
Obligated
Group,
Revenue,
2020
A,
Refunding,
4%
,
2/15/45
....................................................
5,000,000
5,668,700
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Georgia
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
73
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Georgia
(continued)
a
Gainesville
School
District
,
GO
,
2020
,
4
%
,
11/01/42
.........................
$
1,000,000
$
1,205,470
Georgia
Higher
Education
Facilities
Authority
,
USG
Real
Estate
Foundation
III
LLC
,
Revenue
,
2020
,
Refunding
,
4
%
,
6/15/41
.................................
2,305,000
2,612,464
Georgia
Housing
&
Finance
Authority
,
Revenue,
2013A,
3.8%,
12/01/37
......................................
5,000,000
5,175,650
Revenue,
2018
A,
3.85%,
12/01/38
....................................
5,705,000
6,262,607
Revenue,
2018
A,
3.95%,
12/01/43
....................................
3,000,000
3,266,940
Revenue,
2018B,
4.05%,
12/01/38
.....................................
1,260,000
1,331,379
Revenue,
2019A,
Refunding,
3.7%,
6/01/49
..............................
5,000,000
5,418,000
Glynn-Brunswick
Memorial
Hospital
Authority
,
Southeast
Georgia
Health
System
Obligated
Group
,
Revenue
,
2017
,
5
%
,
8/01/47
............................
5,000,000
5,728,000
Gwinnett
County
School
District
,
GO
,
2019
,
5
%
,
2/01/41
......................
3,000,000
3,862,260
Hall
County
School
District
,
GO
,
2020
,
BAM
Insured
,
4
%
,
2/01/40
...............
2,500,000
3,072,850
Henry
County
School
District
,
GO
,
2016
,
4
%
,
8/01/33
........................
5,000,000
5,757,900
Hogansville
Ga
Combined
Public
Utility
System
,
Revenue
,
1993
,
Refunding
,
AGMC
Insured
,
6
%
,
10/01/23
..............................................
1,845,000
1,977,231
Lawrenceville
Building
Authority
,
City
of
Lawrenceville
,
Revenue
,
2015
,
5
%
,
4/01/35
.
2,270,000
2,681,097
Macon
Water
Authority
,
Revenue
,
2015
,
4
%
,
10/01/35
........................
2,810,000
3,246,533
Main
Street
Natural
Gas,
Inc.
,
Revenue,
2007A,
5.5%,
9/15/27
.......................................
5,000,000
6,367,000
Revenue,
2019
A,
5%,
5/15/38
........................................
2,500,000
3,412,475
Metropolitan
Atlanta
Rapid
Transit
Authority
,
Revenue
,
2015B
,
5
%
,
7/01/45
........
5,000,000
5,974,450
Monroe
County
Public
Facilities
Authority
,
County
of
Monroe
,
Revenue
,
2020
,
4
%
,
6/01/42
.........................................................
1,000,000
1,155,110
Moultrie-Colquitt
Counties
Development
Authority
,
Philadelphia
College
of
Osteopathic
Medicine
Obligated
Group
,
Revenue
,
2018
,
5
%
,
12/01/43
...................
4,815,000
5,900,783
Municipal
Electric
Authority
of
Georgia
,
Revenue,
2019A,
AGMC
Insured,
4%,
1/01/44
............................
5,000,000
5,740,800
Revenue,
GG,
Refunding,
5%,
1/01/39
..................................
7,000,000
7,536,900
Municipal
Gas
Authority
of
Georgia
,
Revenue,
S,
Refunding,
5%,
10/01/25
..................................
2,500,000
2,735,625
Revenue,
S,
Refunding,
5%,
10/01/26
..................................
2,500,000
2,733,025
Paulding
County
Hospital
Authority
,
WellStar
Health
System
Obligated
Group
,
Revenue
,
2012A
,
5
%
,
4/01/42
........................................
3,500,000
3,663,310
Pierce
County
School
District
,
GO
,
2017
,
4
%
,
1/01/43
........................
3,725,000
4,254,695
Private
Colleges
&
Universities
Authority
,
Emory
University,
Revenue,
2011A,
Pre-Refunded,
5%,
9/01/41
...............
8,695,000
9,108,795
Emory
University,
Revenue,
2013A,
5%,
10/01/43
.........................
5,000,000
5,562,200
Emory
University,
Revenue,
2019B,
Refunding,
5%,
9/01/48
..................
5,000,000
6,356,800
Pulaski
County
School
District
,
GO
,
2020
,
4
%
,
10/01/42
......................
1,000,000
1,204,870
Richmond
County
Hospital
Authority
,
University
Health
Services
Obligated
Group
,
Revenue
,
2016
,
Refunding
,
4
%
,
1/01/35
.................................
8,000,000
8,928,480
Sandy
Springs
Public
Facilities
Authority
,
City
of
Sandy
Springs
,
Revenue
,
2015
,
5
%
,
5/01/41
.........................................................
3,000,000
3,627,450
Savannah
Hospital
Authority
,
St.
Joseph's/Candler
Health
System
Obligated
Group
,
Revenue
,
2019A
,
Refunding
,
4
%
,
7/01/43
...............................
10,000,000
10,969,700
Sinclair
Water
Authority
,
Revenue
,
2019
,
Refunding
,
AGMC
Insured
,
5
%
,
4/01/48
...
2,000,000
2,500,280
State
of
Georgia
,
GO,
2017
A,
4%,
2/01/36
............................................
5,000,000
5,878,400
GO,
2018A,
4%,
7/01/36
............................................
5,000,000
6,012,500
Thomasville
Hospital
Authority
,
John
D
Archbold
Memorial
Hospital,
Inc.,
Revenue,
2010,
Pre-Refunded,
5.25%,
11/01/35
.......................................................
1,000,000
1,008,460
John
D
Archbold
Memorial
Hospital,
Inc.,
Revenue,
2010,
Pre-Refunded,
5.375%,
11/01/40
.......................................................
5,000,000
5,043,350
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Georgia
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
74
s
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Georgia
(continued)
Tift
County
Hospital
Authority
,
Southwell
Obligated
Group
,
Revenue
,
2013
,
5
%
,
12/01/38
........................................................
$
2,000,000
$
2,142,180
Valdosta
&
Lowndes
County
Hospital
Authority
,
Revenue
,
2011B
,
Pre-Refunded
,
5
%
,
10/01/41
........................................................
3,000,000
3,154,680
Worth
County
School
District
,
GO
,
2017
,
5
%
,
12/01/42
.......................
5,000,000
6,073,450
468,056,541
U.S.
Territories
0.7%
Puerto
Rico
0.7%
b
Puerto
Rico
Electric
Power
Authority
,
Revenue
,
XX-RSA-1
,
5.25
%
,
7/01/40
........
5,000,000
3,456,250
Total
Municipal
Bonds
(Cost
$445,505,749)
.....................................
471,512,791
a
a
a
a
Short
Term
Investments
0.3%
Municipal
Bonds
0.3%
Georgia
0.3%
c
Athens-Clarke
County
Unified
Government
Development
Authority
,
University
of
Georgia
Athletic
Association,
Inc.
,
Revenue
,
2005
B
,
LOC
Wells
Fargo
Bank
NA
,
Daily
VRDN
and
Put
,
0.03
%
,
7/01/35
...................................
1,300,000
1,300,000
Total
Municipal
Bonds
(Cost
$1,300,000)
.......................................
1,300,000
Total
Short
Term
Investments
(Cost
$1,300,000
)
.................................
1,300,000
a
Total
Investments
(Cost
$446,805,749)
99.9%
...................................
$472,812,791
Other
Assets,
less
Liabilities
0.1%
.............................................
360,736
Net
Assets
100.0%
...........................................................
$473,173,527
See
Abbreviations
on
page
159
.
a
Security
purchased
on
a
when-issued
basis.
See
Note
1(b).
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
Kentucky
Tax-Free
Income
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
75
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
Year
Ended
February
28,
2019
b
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
..........................................
$11.24
$10.76
$10.68
Income
from
investment
operations
c
:
Net
investment
income
d
..................................................
0.14
0.29
0.15
Net
realized
and
unrealized
gains
(losses)
....................................
(0.20)
0.50
0.08
Total
from
investment
operations
.............................................
(0.06)
0.79
0.23
Less
distributions
from:
Net
investment
income
...................................................
(0.14)
(0.31)
(0.15)
Net
asset
value,
end
of
period
...............................................
$11.04
$11.24
$10.76
Total
return
e
............................................................
(0.52)%
7.43%
2.16%
Ratios
to
average
net
assets
f
Expenses
g
.............................................................
0.97%
0.97%
0.97%
Net
investment
income
....................................................
2.60%
2.63%
3.00%
Supplemental
data
Net
assets,
end
of
period
(000’s)
.............................................
$10,686
$8,986
$2,785
Portfolio
turnover
rate
.....................................................
5.70%
13.74%
18.61%
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
or
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
Kentucky
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
76
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
2019
2018
2017
2016
a
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$11.23
$10.75
$10.77
$11.01
$11.31
$11.52
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.15
0.31
0.34
0.37
0.40
0.41
Net
realized
and
unrealized
gains
(losses)
(0.20)
0.49
(0.02)
(0.24)
(0.30)
(0.21)
Total
from
investment
operations
........
(0.05)
0.80
0.32
0.13
0.10
0.20
Less
distributions
from:
Net
investment
income
..............
(0.15)
(0.32)
(0.34)
(0.37)
(0.40)
(0.41)
Net
asset
value,
end
of
period
..........
$11.03
$11.23
$10.75
$10.77
$11.01
$11.31
Total
return
d
.......................
(0.45)%
7.60%
3.01%
1.20%
0.86%
1.82%
Ratios
to
average
net
assets
e
Expenses
.........................
0.82%
f
0.82%
f
0.82%
f
0.79%
0.77%
0.76%
Net
investment
income
...............
2.76%
2.78%
3.15%
3.40%
3.51%
3.61%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$118,896
$127,889
$130,267
$150,182
$165,613
$173,093
Portfolio
turnover
rate
................
5.70%
13.74%
18.61%
13.90%
9.14%
5.91%
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,
and
is
not
annualized
or
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Kentucky
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
77
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
Year
Ended
February
28,
2018
b
2020
a
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
..............................
$11.23
$10.75
$10.77
$10.98
Income
from
investment
operations
c
:
Net
investment
income
d
......................................
0.16
0.32
0.35
0.23
Net
realized
and
unrealized
gains
(losses)
........................
(0.20)
0.50
(0.02)
(0.22)
Total
from
investment
operations
.................................
(0.04)
0.82
0.33
0.01
Less
distributions
from:
Net
investment
income
.......................................
(0.16)
(0.34)
(0.35)
(0.22)
Net
asset
value,
end
of
period
...................................
$11.03
$11.23
$10.75
$10.77
Total
return
e
................................................
(0.38)%
7.74%
3.13%
0.07%
Ratios
to
average
net
assets
f
Expenses
before
waiver
and
payments
by
affiliates
...................
0.72%
0.71%
0.70%
0.70%
Expenses
net
of
waiver
and
payments
by
affiliates
....................
0.68%
g
0.68%
g
0.67%
g
0.65%
Net
investment
income
........................................
2.90%
2.92%
3.30%
3.54%
Supplemental
data
Net
assets,
end
of
period
(000’s)
.................................
$2,068
$2,164
$1,843
$2,085
Portfolio
turnover
rate
.........................................
5.70%
13.74%
18.61%
13.90%
a
For
the
year
ended
February
29.
b
For
the
period
August
1,
2017
(effective
date)
to
February
28,
2018.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Kentucky
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
78
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
Year
Ended
February
28,
2017
b
2020
a
2019
2018
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.................
$11.23
$10.75
$10.77
$11.01
$11.35
Income
from
investment
operations
c
:
Net
investment
income
d
.........................
0.16
0.32
0.35
0.38
0.19
Net
realized
and
unrealized
gains
(losses)
...........
(0.21)
0.50
(0.02)
(0.24)
(0.35)
Total
from
investment
operations
....................
(0.05)
0.82
0.33
0.14
(0.16)
Less
distributions
from:
Net
investment
income
..........................
(0.15)
(0.34)
(0.35)
(0.38)
(0.18)
Net
asset
value,
end
of
period
......................
$11.03
$11.23
$10.75
$10.77
$11.01
Total
return
e
...................................
(0.40)%
7.70%
3.10%
1.30%
(1.36)%
Ratios
to
average
net
assets
f
Expenses
.....................................
0.72%
g
0.72%
g
0.72%
g
0.69%
0.67%
Net
investment
income
...........................
2.86%
2.88%
3.25%
3.50%
3.61%
Supplemental
data
Net
assets,
end
of
period
(000’s)
....................
$12,398
$12,168
$9,298
$7,438
$6,896
Portfolio
turnover
rate
............................
5.70%
13.74%
18.61%
13.90%
9.14%
a
For
the
year
ended
February
29.
b
For
the
period
September
15,
2016
(effective
date)
to
February
28,
2017.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited),
August
31,
2020
Franklin
Kentucky
Tax-Free
Income
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
79
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
97.9%
Kentucky
97.9%
Campbell
Kenton
&
Boone
Counties
Sanitation
District
No.
1
,
Revenue
,
2019
,
Refunding
,
4
%
,
8/01/34
.............................................
$
5,310,000
$
6,157,688
City
of
Glasgow
,
TJ
Samson
Community
Hospital
Obligated
Group
,
Revenue
,
2011
,
6.45
%
,
2/01/41
...............................................
2,000,000
2,075,480
City
of
Owensboro
,
Electric
Light
&
Power
System
,
Revenue
,
2017
,
Refunding
,
4
%
,
1/01/27
.........
1,250,000
1,459,975
Water
,
Revenue
,
2018
,
Refunding
,
BAM
Insured
,
4
%
,
9/15/45
................
5,000,000
5,600,750
City
of
Pikeville
,
Pikeville
Medical
Center,
Inc.
,
Revenue
,
2011
,
Pre-Refunded
,
6.5
%
,
3/01/41
.........................................................
2,875,000
2,963,636
City
of
Russell
,
Bon
Secours
Health
System,
Inc.
Obligated
Group
,
Revenue
,
2013
,
Pre-Refunded
,
5
%
,
11/01/26
.....................................
4,000,000
4,391,440
County
of
Boyle
,
Centre
College
of
Kentucky
,
Revenue
,
2017
,
Refunding
,
5
%
,
6/01/37
2,000,000
2,283,660
a
County
of
Carroll
,
Kentucky
Utilities
Co.
,
Revenue
,
2016
A
,
Refunding
,
Mandatory
Put
,
1.55
%
,
9/01/26
...................................................
2,000,000
2,008,100
County
of
Owen
,
American
Water/Kentucky-American
Water
Co.
Obligated
Group
,
Revenue
,
2010A
,
5.375
%
,
6/01/40
.....................................
2,000,000
2,001,720
County
of
Warren
,
Bowling
Green-Warren
County
Community
Hospital
Corp.
,
Revenue
,
2012A
,
5
%
,
10/01/33
...............................................
1,000,000
1,066,420
Eastern
Kentucky
University
,
Revenue
,
2018
A
,
4
%
,
10/01/37
..................
1,540,000
1,661,891
Fayette
County
School
District
Finance
Corp.
,
Fayette
County
School
District
,
Revenue
,
2015D
,
5
%
,
8/01/34
................
1,985,000
2,337,079
Fayette
County
School
District
,
Revenue
,
2018
A
,
4
%
,
5/01/38
................
1,000,000
1,122,800
Greater
Kentucky
Housing
Assistance
Corp.
,
Revenue
,
1997
A
,
Refunding
,
NATL,
FHA
Insured
,
6.1
%
,
1/01/24
..............................................
120,000
120,449
Jefferson
County
School
District
Finance
Corp.
,
Kentucky
School
Facilities
Construction
Commission
,
Revenue
,
2015B
,
Refunding
,
4
%
,
12/01/26
..........
3,500,000
4,167,975
Kentucky
Bond
Development
Corp.
,
Revenue
,
2018
A
,
5
%
,
9/01/48
........................................
2,500,000
2,804,050
Transylvania
University
,
Revenue
,
2019B
,
4
%
,
3/01/49
......................
2,500,000
2,642,550
Kentucky
Economic
Development
Finance
Authority
,
Baptist
Healthcare
System
Obligated
Group
,
Revenue
,
2011
,
5.25
%
,
8/15/46
.....
5,000,000
5,127,750
CommonSpirit
Health
Obligated
Group
,
Revenue
,
2019
A-2
,
Refunding
,
5
%
,
8/01/44
4,000,000
4,823,680
Kentucky
Housing
Corp.
,
Revenue
,
2010
,
GNMA
Insured
,
5
%
,
4/20/40
.............................
2,280,000
2,283,101
Revenue
,
2010
,
GNMA
Insured
,
5.25
%
,
4/20/45
...........................
1,850,000
1,852,460
Kentucky
Infrastructure
Authority
,
Revenue
,
2012A
,
Pre-Refunded
,
5
%
,
2/01/28
.............................
2,000,000
2,136,060
Revenue
,
2012A
,
Pre-Refunded
,
5
%
,
2/01/31
.............................
4,190,000
4,475,046
Kentucky
Municipal
Power
Agency
,
Revenue
,
2016
A
,
Refunding
,
NATL
Insured
,
5
%
,
9/01/36
....................
3,000,000
3,479,790
Revenue
,
2019
A
,
Refunding
,
4
%
,
9/01/45
...............................
2,000,000
2,145,700
Kentucky
Rural
Water
Finance
Corp.
,
Revenue
,
2001A
,
5
%
,
2/01/26
........................................
485,000
486,891
Revenue
,
2004
I
,
5
%
,
2/01/34
........................................
1,010,000
1,013,182
Kentucky
State
Property
&
Building
Commission
,
Kentucky
Finance
and
Administration
Cabinet
,
Revenue
,
5
%
,
4/01/38
...........
2,500,000
2,946,450
Kentucky
Finance
and
Administration
Cabinet
,
Revenue
,
A
,
Refunding
,
5
%
,
8/01/34
3,500,000
4,007,465
Kentucky
Turnpike
Authority
,
Kentucky
Transportation
Cabinet
,
Revenue
,
2011
A
,
Refunding
,
5
%
,
7/01/30
.....
2,500,000
2,574,650
Kentucky
Transportation
Cabinet
,
Revenue
,
2013A
,
5
%
,
7/01/32
..............
2,000,000
2,184,180
Kentucky
Transportation
Cabinet
,
Revenue
,
2015
A
,
Refunding
,
5
%
,
7/01/33
.....
3,000,000
3,449,580
Kentucky
Transportation
Cabinet
,
Revenue
,
2017
A
,
Refunding
,
5
%
,
7/01/36
.....
550,000
658,553
Kentucky
Transportation
Cabinet
,
Revenue
,
2017
A
,
Refunding
,
5
%
,
7/01/37
.....
700,000
835,870
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Kentucky
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Semiannual
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The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
80
s
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Kentucky
(continued)
Lexington
Fayette
Urban
County
Government
Public
Facilities
Corp.
,
Revenue
,
2011A
,
5.25
%
,
6/01/32
..............................................
$
3,000,000
$
3,081,900
Lexington-Fayette
Urban
County
Airport
Board
Corp.
,
Lexington-Fayette
Urban
County
Government
,
Revenue
,
2012B
,
Pre-Refunded
,
5
%
,
7/01/29
..................
1,185,000
1,288,190
Louisville
and
Jefferson
County
,
Metropolitan
Sewer
District
,
Revenue
,
2017
A
,
4
%
,
5/15/48
..................
2,750,000
3,054,507
Metropolitan
Sewer
District
,
Revenue
,
2018
A
,
Refunding
,
4
%
,
5/15/38
..........
5,000,000
5,843,850
Louisville/Jefferson
County
Metropolitan
Government
,
Bellarmine
University,
Inc.
,
Revenue
,
2015
,
Refunding
,
5
%
,
5/01/31
............
2,000,000
2,139,660
Bellarmine
University,
Inc.
,
Revenue
,
2017
A
,
Refunding
,
5
%
,
5/01/36
..........
2,715,000
2,917,485
Norton
Healthcare
Obligated
Group
,
Revenue
,
2020A
,
4
%
,
10/01/39
...........
2,500,000
2,855,225
Morehead
State
University
,
Revenue
,
2014A
,
Refunding
,
5
%
,
10/01/28
...........
1,910,000
2,144,185
Paducah
Electric
Plant
Board
,
Revenue
,
2016
A
,
Refunding
,
AGMC
Insured
,
5
%
,
10/01/34
........................................................
5,700,000
6,791,835
Scott
County
School
District
Finance
Corp.
,
Scott
County
Board
of
Education
,
Revenue
,
2018
,
4
%
,
6/01/38
.........................................
1,615,000
1,802,647
Shelby
County
School
District
Finance
Corp.
,
Shelby
County
Public
School
District
,
Revenue
,
2018
,
4
%
,
8/01/38
.........................................
3,465,000
3,877,266
University
of
Kentucky
,
Revenue
,
2014A
,
4
%
,
4/01/44
........................................
2,250,000
2,400,863
Revenue
,
2018
A
,
4
%
,
10/01/32
.......................................
4,000,000
4,522,520
University
of
Louisville
,
Revenue
,
2011
A
,
Refunding
,
5
%
,
9/01/28
...............................
2,220,000
2,318,790
Revenue
,
2016
D
,
5
%
,
3/01/30
........................................
4,140,000
4,938,896
Western
Kentucky
University
,
Revenue
,
2012A
,
Refunding
,
5
%
,
5/01/32
..........
1,625,000
1,702,724
141,026,614
Total
Municipal
Bonds
(Cost
$
132,741,198
)
.....................................
141,026,614
a
a
a
a
Short
Term
Investments
0.7%
Municipal
Bonds
0.7%
Kentucky
0.7%
b
City
of
Berea
,
Berea
College
,
Revenue
,
2002A
,
Daily
VRDN
and
Put
,
0.05
%
,
6/01/32
.........
345,000
345,000
Berea
College
,
Revenue
,
2003B
,
Refunding
,
Daily
VRDN
and
Put
,
0.05
%
,
6/01/29
.
650,000
650,000
995,000
Total
Municipal
Bonds
(Cost
$
995,000
)
.........................................
995,000
Total
Short
Term
Investments
(Cost
$
995,000
)
..................................
995,000
a
Total
Investments
(Cost
$
133,736,198
)
98
.6
%
...................................
$142,021,614
Other
Assets,
less
Liabilities
1
.4
%
.............................................
2,027,408
Net
Assets
100.0%
...........................................................
$144,049,022
See
Abbreviations
on
page
159
.
a
The
maturity
date
shown
represents
the
mandatory
put
date.
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
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Louisiana
Tax-Free
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integral
part
of
these
financial
statements.
Semiannual
Report
81
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
Year
Ended
February
28,
2019
b
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
..........................................
$11.55
$10.93
$10.85
Income
from
investment
operations
c
:
Net
investment
income
d
..................................................
0.15
0.30
0.16
Net
realized
and
unrealized
gains
(losses)
....................................
(0.26)
0.64
0.08
Total
from
investment
operations
.............................................
(0.11)
0.94
0.24
Less
distributions
from:
Net
investment
income
...................................................
(0.14)
(0.32)
(0.16)
Net
asset
value,
end
of
period
...............................................
$11.30
$11.55
$10.93
Total
return
e
............................................................
(0.91)%
8.68%
2.22%
Ratios
to
average
net
assets
f
Expenses
g
.............................................................
0.86%
0.86%
0.88%
Net
investment
income
....................................................
2.59%
2.70%
3.06%
Supplemental
data
Net
assets,
end
of
period
(000’s)
.............................................
$53,292
$48,032
$18,110
Portfolio
turnover
rate
.....................................................
7.37%
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
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The
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integral
part
of
these
financial
statements.
82
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
2019
2018
2017
2016
a
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$11.55
$10.92
$10.90
$11.15
$11.50
$11.62
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.16
0.32
0.35
0.36
0.39
0.43
Net
realized
and
unrealized
gains
(losses)
(0.27)
0.64
0.02
(0.24)
(0.34)
(0.12)
Total
from
investment
operations
........
(0.11)
0.96
0.37
0.12
0.05
0.31
Less
distributions
from:
Net
investment
income
..............
(0.15)
(0.33)
(0.35)
(0.37)
(0.40)
(0.43)
Net
asset
value,
end
of
period
..........
$11.29
$11.55
$10.92
$10.90
$11.15
$11.50
Total
return
d
.......................
(0.92)%
8.94%
3.45%
1.04%
0.43%
2.78%
Ratios
to
average
net
assets
e
Expenses
.........................
0.72%
f
0.71%
f
0.73%
f
0.70%
0.68%
0.69%
Net
investment
income
...............
2.76%
2.85%
3.21%
3.23%
3.41%
3.77%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$265,836
$289,744
$284,259
$322,080
$343,042
$335,785
Portfolio
turnover
rate
................
7.37%
4.83%
9.46%
21.83%
16.87%
4.13%
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,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Louisiana
Tax-Free
Income
Fund
(continued)
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accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
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83
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
2019
2018
2017
2016
a
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$11.74
$11.10
$11.07
$11.32
$11.67
$11.79
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.13
0.26
0.29
0.30
0.33
0.37
Net
realized
and
unrealized
gains
(losses)
(0.27)
0.65
0.03
(0.25)
(0.34)
(0.12)
Total
from
investment
operations
........
(0.14)
0.91
0.32
0.05
(0.01)
0.25
Less
distributions
from:
Net
investment
income
..............
(0.12)
(0.27)
(0.29)
(0.30)
(0.34)
(0.37)
Net
asset
value,
end
of
period
..........
$11.48
$11.74
$11.10
$11.07
$11.32
$11.67
Total
return
d
.......................
(1.17)%
8.34%
2.92%
0.46%
(0.13)%
2.18%
Ratios
to
average
net
assets
e
Expenses
.........................
1.26%
f
1.26%
f
1.28%
f
1.25%
1.23%
1.24%
Net
investment
income
...............
2.18%
2.30%
2.66%
2.68%
2.86%
3.22%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$31,664
$38,066
$42,188
$61,399
$67,154
$68,319
Portfolio
turnover
rate
................
7.37%
4.83%
9.46%
21.83%
16.87%
4.13%
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,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
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Franklin
Louisiana
Tax-Free
Income
Fund
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The
accompanying
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are
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integral
part
of
these
financial
statements.
84
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
Year
Ended
February
28,
2018
b
2020
a
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
..............................
$11.55
$10.93
$10.90
$11.18
Income
from
investment
operations
c
:
Net
investment
income
d
......................................
0.16
0.33
0.36
0.22
Net
realized
and
unrealized
gains
(losses)
........................
(0.26)
0.64
0.03
(0.28)
Total
from
investment
operations
.................................
(0.10)
0.97
0.39
(0.06)
Less
distributions
from:
Net
investment
income
.......................................
(0.16)
(0.35)
(0.36)
(0.22)
Net
asset
value,
end
of
period
...................................
$11.29
$11.55
$10.93
$10.90
Total
return
e
................................................
(0.85)%
8.99%
3.67%
(0.59)%
Ratios
to
average
net
assets
f
Expenses
before
waiver
and
payments
by
affiliates
...................
0.60%
0.60%
0.61%
0.60%
Expenses
net
of
waiver
and
payments
by
affiliates
....................
0.58%
g
0.58%
g
0.59%
g
0.57%
Net
investment
income
........................................
2.88%
2.98%
3.35%
3.36%
Supplemental
data
Net
assets,
end
of
period
(000’s)
.................................
$6,044
$5,383
$3,865
$3,683
Portfolio
turnover
rate
.........................................
7.37%
4.83%
9.46%
21.83%
a
For
the
year
ended
February
29.
b
For
the
period
August
1,
2017
(effective
date)
to
February
28,
2018.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Louisiana
Tax-Free
Income
Fund
(continued)
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The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
85
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
Year
Ended
February
28,
2017
b
2020
a
2019
2018
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.................
$11.55
$10.93
$10.90
$11.15
$11.54
Income
from
investment
operations
c
:
Net
investment
income
d
.........................
0.16
0.33
0.36
0.37
0.19
Net
realized
and
unrealized
gains
(losses)
...........
(0.26)
0.63
0.03
(0.24)
(0.40)
Total
from
investment
operations
....................
(0.10)
0.96
0.39
0.13
(0.21)
Less
distributions
from:
Net
investment
income
..........................
(0.16)
(0.34)
(0.36)
(0.38)
(0.18)
Net
asset
value,
end
of
period
......................
$11.29
$11.55
$10.93
$10.90
$11.15
Total
return
e
...................................
(0.87)%
8.95%
3.65%
1.14%
(1.79)%
Ratios
to
average
net
assets
f
Expenses
.....................................
0.62%
g
0.61%
g
0.63%
g
0.60%
0.58%
Net
investment
income
...........................
2.84%
2.95%
3.31%
3.33%
3.51%
Supplemental
data
Net
assets,
end
of
period
(000’s)
....................
$30,304
$27,945
$19,580
$14,091
$10,259
Portfolio
turnover
rate
............................
7.37%
4.83%
9.46%
21.83%
16.87%
a
For
the
year
ended
February
29.
b
For
the
period
September
15,
2016
(effective
date)
to
February
28,
2017.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited),
August
31,
2020
Franklin
Louisiana
Tax-Free
Income
Fund
franklintempleton.com
Semiannual
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
97.5%
Louisiana
96.6%
Calcasieu
Parish
Public
Trust
Authority
,
Cowboy
Facilities,
Inc.
,
Revenue
,
2011
,
Refunding
,
AGMC
Insured
,
5
%
,
5/01/29
.................................
$
2,050,000
$
2,190,240
Calcasieu
Parish
School
District
No.
23
,
GO,
2012A,
Pre-Refunded,
5%,
2/15/29
.................................
1,380,000
1,475,413
GO,
2019,
BAM
Insured,
4%,
9/01/36
...................................
670,000
794,754
GO,
2019,
BAM
Insured,
4%,
9/01/37
...................................
600,000
708,762
GO,
2019,
BAM
Insured,
4%,
9/01/39
...................................
2,060,000
2,414,897
Calcasieu
Parish
School
District
No.
31
,
GO,
2018,
BAM
Insured,
5%,
3/01/36
...................................
1,000,000
1,256,550
GO,
2018,
BAM
Insured,
5%,
3/01/38
...................................
1,000,000
1,250,660
GO,
2019,
BAM
Insured,
4%,
3/01/37
...................................
1,000,000
1,205,310
GO,
2019,
BAM
Insured,
4%,
3/01/39
...................................
750,000
899,197
Capital
Area
Finance
Authority
,
Revenue,
2009A-2,
Refunding,
GNMA
Insured,
5.1%,
10/01/40
...............
155,000
155,406
Revenue,
2009A-3,
Refunding,
GNMA
Insured,
5%,
10/01/28
.................
250,000
250,793
City
of
Alexandria
,
Utilities
,
Revenue
,
2013A
,
Pre-Refunded
,
5
%
,
5/01/38
.........
10,000,000
11,260,300
City
of
Bossier
City
,
Revenue,
2017,
5%,
12/01/36
........................................
1,405,000
1,710,756
Utilities,
Revenue,
2014,
Refunding,
5%,
10/01/37
.........................
5,280,000
6,053,626
City
of
Kenner
,
Revenue
,
2013A
,
Refunding
,
5
%
,
6/01/33
.....................
8,605,000
9,544,064
City
of
Lafayette
,
Public
Improvement
1961
Sales
Tax
Trust,
Revenue,
2011,
Pre-Refunded,
5%,
3/01/36
........................................................
1,865,000
1,910,040
Sales
&
Use
Tax,
Revenue,
2019
A,
5%,
5/01/44
..........................
4,350,000
5,418,360
a
Sales
&
Use
Tax,
Revenue,
2020
B,
4%,
3/01/45
..........................
5,000,000
5,866,750
Utilities,
Revenue,
2010,
Pre-Refunded,
5%,
11/01/33
......................
5,000,000
5,039,950
City
of
Ruston
,
Revenue
,
2016
,
AGMC
Insured
,
5
%
,
6/01/35
...................
1,085,000
1,291,855
City
of
Shreveport
,
GO,
2011,
Pre-Refunded,
5%,
8/01/29
..................................
4,790,000
4,998,892
Revenue,
2016,
Refunding,
BAM
Insured,
5%,
3/01/27
......................
1,500,000
1,857,510
Water
&
Sewer,
Revenue,
2016
B,
5%,
12/01/41
..........................
4,000,000
4,738,760
a
Consolidated
Government
of
the
City
of
Baton
Rouge
&
Parish
of
East
Baton
Rouge
,
Revenue
,
2020
,
Refunding
,
AGMC
Insured
,
5
%
,
8/01/30
....................
1,000,000
1,342,960
East
Baton
Rouge
Sewerage
Commission
,
Revenue,
2014B,
Pre-Refunded,
5%,
2/01/33
.............................
1,000,000
1,205,440
Revenue,
2014B,
Pre-Refunded,
5%,
2/01/39
.............................
5,000,000
6,027,200
Revenue,
2019
A,
Refunding,
4%,
2/01/45
...............................
5,000,000
5,877,200
Revenue,
2020A,
Refunding,
5%,
2/01/31
...............................
750,000
1,009,417
Greater
New
Orleans
Expressway
Commission
,
Revenue
,
2017
,
AGMC
Insured
,
5
%
,
11/01/47
........................................................
4,000,000
4,653,840
Jefferson
Parish
Hospital
Service
District
No.
1
,
Revenue
,
2011A
,
Pre-Refunded
,
6
%
,
1/01/39
.........................................................
3,105,000
3,163,840
Jefferson
Sales
Tax
District
,
Revenue,
2017
B,
AGMC
Insured,
5%,
12/01/42
...........................
2,250,000
2,700,383
Revenue,
2019
B,
AGMC
Insured,
4%,
12/01/42
...........................
5,000,000
5,773,250
Kenner
Consolidated
Sewerage
District
,
Revenue
,
2011
,
Pre-Refunded
,
AGMC
Insured
,
5
%
,
11/01/36
..............................................
4,000,000
4,219,680
Lafayette
Consolidated
Government
,
Revenue,
2015,
Refunding,
AGMC
Insured,
5%,
11/01/28
...................
1,345,000
1,608,459
Revenue,
2015,
Refunding,
AGMC
Insured,
5%,
11/01/31
...................
2,400,000
2,839,296
Lafayette
Parish
School
Board
,
Revenue
,
2018
,
5
%
,
4/01/48
...................
6,000,000
7,171,740
Lafayette
Public
Trust
Financing
Authority
,
Ragin
Cajun
Facilities,
Inc.
,
Revenue
,
2010
,
Pre-Refunded
,
AGMC
Insured
,
5.25
%
,
10/01/30
...........................
4,000,000
4,016,360
Louisiana
Local
Government
Environmental
Facilities
&
Community
Development
Authority
,
Cowboy
Facilities,
Inc.,
Revenue,
2011,
AGMC
Insured,
5%,
3/01/36
...........
1,800,000
1,904,364
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Louisiana
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
87
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Louisiana
(continued)
Louisiana
Local
Government
Environmental
Facilities
&
Community
Development
Authority,
(continued)
East
Ascension
Parish
Gravity
Drainage
District
No.
1,
Revenue,
2015,
Refunding,
BAM
Insured,
5%,
12/01/40
........................................
$
2,925,000
$
3,460,100
East
Baton
Rouge
Sewerage
Commission,
Revenue,
Sub.
Lien,
2013A,
Pre-
Refunded,
5%,
2/01/43
............................................
3,000,000
3,342,720
East
Baton
Rouge
Sewerage
Commission,
Revenue,
Sub.
Lien,
2014A,
Pre-
Refunded,
5%,
2/01/34
............................................
2,550,000
2,958,638
Innovative
Student
Facilities,
Inc.,
Revenue,
2016
A,
AGMC
Insured,
4%,
10/01/33
.
800,000
896,752
Innovative
Student
Facilities,
Inc.,
Revenue,
2016
A,
AGMC
Insured,
4%,
10/01/34
.
620,000
693,538
Louisiana
Community
&
Technical
College
System,
Revenue,
2014,
5%,
10/01/32
.
3,000,000
3,397,860
Louisiana
Community
&
Technical
College
System,
Revenue,
2014,
5%,
10/01/33
.
5,000,000
5,648,750
Ragin
Cajun
Facilities,
Inc.,
Revenue,
2017,
Refunding,
AGMC
Insured,
5%,
10/01/39
.......................................................
2,680,000
3,212,194
University
of
Louisiana
at
Lafayette,
Revenue,
2018,
AGMC
Insured,
5%,
10/01/48
3,500,000
4,029,760
University
of
Louisiana
System,
Revenue,
2019,
Refunding,
AGMC
Insured,
4%,
8/01/34
........................................................
1,000,000
1,161,260
Woman's
Hospital
Foundation,
Revenue,
2017
A,
Refunding,
5%,
10/01/44
......
5,000,000
5,883,800
Louisiana
Public
Facilities
Authority
,
CHRISTUS
Health
Obligated
Group,
Revenue,
2018
E,
5%,
7/01/48
...........
5,000,000
6,065,150
Franciscan
Missionaries
of
Our
Lady
Health
System
Obligated
Group,
Revenue,
2015A,
Pre-Refunded,
5%,
7/01/35
...................................
35,000
42,770
Franciscan
Missionaries
of
Our
Lady
Health
System
Obligated
Group,
Revenue,
2015A,
Refunding,
5%,
7/01/35
......................................
4,965,000
5,667,796
Lafayette
General
Medical
Center
Project,
Revenue,
2010,
Refunding,
5.25%,
11/01/30
.......................................................
5,000,000
5,041,750
Louisiana
Children's
Medical
Center
Obligated
Group,
Revenue,
2015
A1,
5%,
6/01/45
........................................................
10,000,000
11,988,100
Louisiana
State
University
&
Agricultural
&
Mechanical
College
Auxiliary,
Revenue,
2016
A,
5%,
7/01/46
..............................................
6,500,000
7,117,565
Louisiana
State
University
&
Agricultural
&
Mechanical
College
Auxiliary,
Revenue,
2017,
5%,
7/01/52
................................................
2,310,000
2,554,259
Loyola
University
New
Orleans,
Revenue,
2011,
5%,
10/01/41
................
5,000,000
5,066,500
Ochsner
Clinic
Foundation,
Revenue,
2002B,
ETM,
5.75%,
5/15/23
............
2,500,000
2,862,825
Ochsner
Clinic
Foundation,
Revenue,
2011,
Pre-Refunded,
6.75%,
5/15/41
......
5,000,000
5,228,400
Ochsner
Clinic
Foundation,
Revenue,
2016,
Pre-Refunded,
5%,
5/15/34
.........
30,000
37,523
Ochsner
Clinic
Foundation,
Revenue,
2016,
Pre-Refunded,
5%,
5/15/47
.........
20,000
25,016
Ochsner
Clinic
Foundation,
Revenue,
2017,
Refunding,
5%,
5/15/46
...........
10,000,000
11,465,000
b
Roman
Catholic
Church
of
the
Archdiocese
of
New
Orleans,
Revenue,
2017,
Refunding,
5%,
7/01/37
............................................
3,750,000
2,775,000
Tulane
University,
Revenue,
2013B,
5%,
10/01/37
.........................
5,540,000
6,016,994
Tulane
University,
Revenue,
2016
A,
Refunding,
5%,
12/15/41
................
3,000,000
3,559,020
Tulane
University,
Revenue,
2017A,
Refunding,
4%,
12/15/50
................
2,000,000
2,222,120
Tulane
University,
Revenue,
2020
A,
Refunding,
5%,
4/01/45
.................
1,000,000
1,252,270
Louisiana
Stadium
&
Exposition
District
,
Revenue
,
2020
,
5
%
,
7/03/23
............
1,150,000
1,218,448
Louisiana
State
Transportation
Authority
,
Revenue
,
2013A
,
Refunding
,
5
%
,
8/15/38
..
4,500,000
5,025,600
Louisiana
State
University
&
Agricultural
&
Mechanical
College
,
Revenue,
2013,
Pre-Refunded,
5%,
7/01/37
..............................
4,000,000
4,534,360
Revenue,
2014,
Refunding,
5%,
7/01/29
.................................
1,000,000
1,124,490
Revenue,
2014,
Refunding,
5%,
7/01/30
.................................
1,040,000
1,165,871
Revenue,
2014,
Refunding,
5%,
7/01/34
.................................
1,000,000
1,109,580
Revenue,
2016
A,
Refunding,
5%,
7/01/40
...............................
4,500,000
5,149,485
Natchitoches
Parish
School
District
No.
9
,
GO
,
2018
,
AGMC
Insured
,
5
%
,
3/01/38
...
1,440,000
1,804,363
New
Orleans
Aviation
Board
,
Louis
Armstrong
New
Orleans
International
Airport
,
Revenue
,
2017A
,
5
%
,
1/01/48
........................................
10,000,000
11,586,300
Parish
of
East
Baton
Rouge
Capital
Improvements
District
,
Revenue,
2019,
4%,
8/01/44
.........................................
2,055,000
2,446,662
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Louisiana
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
88
s
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Louisiana
(continued)
Parish
of
East
Baton
Rouge
Capital
Improvements
District,
(continued)
Revenue,
2019,
5%,
8/01/48
.........................................
$
2,500,000
$
3,158,625
Port
New
Orleans
Board
of
Commissioners
,
Revenue,
2018
A,
AGMC
Insured,
5%,
4/01/48
............................
2,750,000
3,270,987
Revenue,
2018
B,
Refunding,
AGMC
Insured,
5%,
4/01/43
...................
2,000,000
2,387,880
a
Revenue,
2020
D,
5%,
4/01/50
........................................
4,000,000
4,886,760
St.
Charles
Parish
School
Board
,
Revenue
,
2019
,
4
%
,
8/01/38
.................
805,000
958,602
St.
Tammany
Parish
Hospital
Service
District
No.
1
,
Revenue
,
2018
A
,
Refunding
,
5
%
,
7/01/48
.........................................................
5,000,000
5,947,100
State
of
Louisiana
,
GO,
2014-C,
Refunding,
5%,
8/01/27
...................................
7,200,000
8,465,256
GO,
2016
A,
5%,
9/01/36
............................................
5,000,000
6,033,950
GO,
2019-A,
5%,
3/01/37
............................................
3,000,000
3,855,210
Revenue,
2013,
5%,
9/01/33
.........................................
5,860,000
6,447,641
Revenue,
2013A,
5%,
6/15/30
........................................
2,860,000
3,194,734
Revenue,
2014A,
5%,
6/15/32
........................................
9,850,000
11,273,916
Revenue,
2019A,
5%,
9/01/30
........................................
2,000,000
2,616,000
Revenue,
2019A,
5%,
9/01/31
........................................
4,750,000
6,179,275
Gasoline
&
Fuels
Tax,
Revenue,
First
Lien,
2015
A,
Refunding,
5%,
5/01/41
......
3,000,000
3,478,200
Gasoline
&
Fuels
Tax,
Revenue,
Second
Lien,
2017
C,
Refunding,
5%,
5/01/40
...
5,000,000
6,047,950
Gasoline
&
Fuels
Tax,
Revenue,
Second
Lien,
2017
C,
Refunding,
5%,
5/01/45
...
10,000,000
11,938,800
Gasoline
&
Fuels
Tax,
Revenue,
Second
Lien,
C-1,
Refunding,
5%,
5/01/43
......
5,000,000
5,630,150
a
Terrebonne
Levee
&
Conservation
District
,
Revenue
,
2020
B
,
Refunding
,
4
%
,
6/01/41
1,000,000
1,139,360
Terrebonne
Parish
Consolidated
Government
,
Revenue
,
ST-2011
,
Pre-Refunded
,
AGMC
Insured
,
5
%
,
4/01/32
..........................................
2,265,000
2,328,171
373,883,430
U.S.
Territories
0.9%
Puerto
Rico
0.9%
b
Puerto
Rico
Electric
Power
Authority
,
Revenue
,
WW-RSA-1
,
5.25
%
,
7/01/33
.......
5,450,000
3,767,312
Total
Municipal
Bonds
(Cost
$355,075,911)
.....................................
377,650,742
a
a
a
a
a
Total
Investments
(Cost
$355,075,911)
97.5%
...................................
$377,650,742
Other
Assets,
less
Liabilities
2.5%
.............................................
9,489,357
Net
Assets
100.0%
...........................................................
$387,140,099
See
Abbreviations
on
page
159
.
a
Security
purchased
on
a
when-issued
basis.
See
Note
1(b).
b
See
Note
7
regarding
defaulted
securities.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Maryland
Tax-Free
Income
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
89
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
Year
Ended
February
28,
2019
b
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
..........................................
$11.35
$10.80
$10.76
Income
from
investment
operations
c
:
Net
investment
income
d
..................................................
0.15
0.29
0.15
Net
realized
and
unrealized
gains
(losses)
....................................
(0.30)
0.57
0.04
Total
from
investment
operations
.............................................
(0.15)
0.86
0.19
Less
distributions
from:
Net
investment
income
...................................................
(0.15)
(0.31)
(0.15)
Net
asset
value,
end
of
period
...............................................
$11.05
$11.35
$10.80
Total
return
e
............................................................
(1.33)%
8.11%
1.84%
Ratios
to
average
net
assets
f
Expenses
g
.............................................................
0.87%
0.88%
0.88%
Net
investment
income
....................................................
2.65%
2.65%
2.95%
Supplemental
data
Net
assets,
end
of
period
(000’s)
.............................................
$69,855
$60,104
$26,572
Portfolio
turnover
rate
.....................................................
4.96%
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
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
90
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
2019
2018
2017
2016
a
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$11.36
$10.80
$10.76
$11.10
$11.35
$11.55
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.16
0.31
0.33
0.34
0.39
0.42
Net
realized
and
unrealized
gains
(losses)
(0.30)
0.58
0.05
(0.32)
(0.24)
(0.21)
Total
from
investment
operations
........
(0.14)
0.89
0.38
0.02
0.15
0.21
Less
distributions
from:
Net
investment
income
..............
(0.16)
(0.33)
(0.34)
(0.36)
(0.40)
(0.41)
Net
asset
value,
end
of
period
..........
$11.06
$11.36
$10.80
$10.76
$11.10
$11.35
Total
return
d
.......................
(1.17)%
8.27%
3.59%
0.13%
1.31%
1.88%
Ratios
to
average
net
assets
e
Expenses
.........................
0.72%
f
0.73%
f
0.73%
f
0.70%
0.67%
0.67%
Net
investment
income
...............
2.81%
2.80%
3.10%
3.07%
3.47%
3.70%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$254,185
$270,309
$279,750
$319,120
$351,933
$369,661
Portfolio
turnover
rate
................
4.96%
7.50%
5.33%
11.36%
33.34%
9.77%
a
For
the
year
ended
February
29.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Maryland
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
91
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
2019
2018
2017
2016
a
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$11.59
$11.02
$10.98
$11.31
$11.56
$11.75
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.13
0.25
0.28
0.28
0.34
0.36
Net
realized
and
unrealized
gains
(losses)
(0.30)
0.59
0.04
(0.32)
(0.25)
(0.20)
Total
from
investment
operations
........
(0.17)
0.84
0.32
(0.04)
0.09
0.16
Less
distributions
from:
Net
investment
income
..............
(0.13)
(0.27)
(0.28)
(0.29)
(0.34)
(0.35)
Net
asset
value,
end
of
period
..........
$11.29
$11.59
$11.02
$10.98
$11.31
$11.56
Total
return
d
.......................
(1.49)%
7.75%
2.94%
(0.34)%
0.72%
1.38%
Ratios
to
average
net
assets
e
Expenses
.........................
1.27%
f
1.28%
f
1.28%
f
1.25%
1.22%
1.22%
Net
investment
income
...............
2.22%
2.25%
2.55%
2.52%
2.92%
3.15%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$38,778
$45,502
$56,323
$92,553
$115,011
$117,167
Portfolio
turnover
rate
................
4.96%
7.50%
5.33%
11.36%
33.34%
9.77%
a
For
the
year
ended
February
29.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Maryland
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
92
In
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
Year
Ended
February
28,
2018
b
2020
a
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
..............................
$11.37
$10.82
$10.78
$11.05
Income
from
investment
operations
c
:
Net
investment
income
d
......................................
0.16
0.32
0.35
0.21
Net
realized
and
unrealized
gains
(losses)
........................
(0.30)
0.58
0.04
(0.27)
Total
from
investment
operations
.................................
(0.14)
0.90
0.39
(0.06)
Less
distributions
from:
Net
investment
income
.......................................
(0.16)
(0.35)
(0.35)
(0.21)
Net
asset
value,
end
of
period
...................................
$11.07
$11.37
$10.82
$10.78
Total
return
e
................................................
(1.18)%
8.41%
3.71%
(0.58)%
Ratios
to
average
net
assets
f
Expenses
before
waiver
and
payments
by
affiliates
...................
0.59%
0.60%
0.61%
0.62%
Expenses
net
of
waiver
and
payments
by
affiliates
....................
0.57%
g
0.58%
g
0.58%
g
0.56%
Net
investment
income
........................................
2.94%
2.95%
3.25%
3.21%
Supplemental
data
Net
assets,
end
of
period
(000’s)
.................................
$4,332
$3,642
$1,753
$1,376
Portfolio
turnover
rate
.........................................
4.96%
7.50%
5.33%
11.36%
a
For
the
year
ended
February
29.
b
For
the
period
August
1,
2017
(effective
date)
to
February
28,
2018.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Maryland
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
93
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
2019
2018
2017
2016
a
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$11.37
$10.81
$10.77
$11.11
$11.35
$11.56
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.16
0.32
0.34
0.35
0.41
0.43
Net
realized
and
unrealized
gains
(losses)
(0.30)
0.58
0.05
(0.32)
(0.24)
(0.22)
Total
from
investment
operations
........
(0.14)
0.90
0.39
0.03
0.17
0.21
Less
distributions
from:
Net
investment
income
..............
(0.16)
(0.34)
(0.35)
(0.37)
(0.41)
(0.42)
Net
asset
value,
end
of
period
..........
$11.07
$11.37
$10.81
$10.77
$11.11
$11.35
Total
return
d
.......................
(1.20)%
8.47%
3.68%
0.22%
1.50%
1.90%
Ratios
to
average
net
assets
e
Expenses
.........................
0.62%
f
0.63%
f
0.63%
f
0.60%
0.57%
0.57%
Net
investment
income
...............
2.90%
2.90%
3.20%
3.17%
3.57%
3.80%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$53,687
$54,079
$44,264
$40,532
$42,625
$28,464
Portfolio
turnover
rate
................
4.96%
7.50%
5.33%
11.36%
33.34%
9.77%
a
For
the
year
ended
February
29.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited),
August
31,
2020
Franklin
Maryland
Tax-Free
Income
Fund
franklintempleton.com
Semiannual
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
97.5%
Maryland
94.1%
City
of
Annapolis
,
GO
,
2011
,
Pre-Refunded
,
5
%
,
8/01/31
......................
$
1,250,000
$
1,305,113
City
of
Baltimore
,
Wastewater
Utility
Fund,
Revenue,
2011A,
5%,
7/01/41
.....................
14,435,000
14,913,665
Wastewater
Utility
Fund,
Revenue,
2017
A,
5%,
7/01/46
.....................
5,000,000
5,915,100
Water
Utility
Fund,
Revenue,
2011A,
5%,
7/01/41
..........................
7,845,000
8,087,175
Water
Utility
Fund,
Revenue,
2013A,
5%,
7/01/38
..........................
8,930,000
9,953,199
Water
Utility
Fund,
Revenue,
2013B,
Refunding,
5%,
7/01/38
.................
5,000,000
5,572,900
County
of
Anne
Arundel
,
GO,
2011,
5%,
4/01/41
..............................................
12,620,000
12,923,258
GO,
2013,
5%,
4/01/33
.............................................
3,140,000
3,474,190
GO,
2019,
5%,
10/01/46
.............................................
2,140,000
2,765,244
a
Glenview
Housing
LP,
Revenue,
2009,
Mandatory
Put,
5%,
1/01/27
............
1,890,000
1,933,527
County
of
Baltimore
,
GO,
5%,
2/01/39
..................................................
2,900,000
3,463,354
GO,
5%,
2/01/41
..................................................
2,900,000
3,450,565
County
of
Montgomery
,
GO,
2009A,
Refunding,
4%,
11/01/20
...................................
8,000,000
8,024,960
GO,
2016
A,
4%,
12/01/33
...........................................
7,000,000
7,821,030
Revenue,
2011A,
5%,
4/01/27
........................................
1,625,000
1,669,460
Revenue,
2011A,
5%,
4/01/28
........................................
2,230,000
2,290,210
Revenue,
2011A,
5%,
4/01/30
........................................
1,935,000
1,985,523
Revenue,
2011A,
5%,
4/01/31
........................................
2,470,000
2,533,454
Water
Quality
Protection
Charge,
Revenue,
2012A,
5%,
4/01/30
...............
1,855,000
1,861,715
Water
Quality
Protection
Charge,
Revenue,
2012A,
5%,
4/01/31
...............
1,240,000
1,244,427
County
of
Prince
George's
,
COP,
2011,
5%,
10/01/30
............................................
2,060,000
2,067,457
GO,
2018
A,
4%,
7/15/35
............................................
11,405,000
13,682,693
GO,
2020
A,
5%,
7/15/40
............................................
900,000
1,145,349
Howard
County
Housing
Commission
,
Revenue,
2013,
5%,
10/01/28
........................................
10,000,000
11,106,700
Revenue,
2016,
4%,
6/01/46
.........................................
2,000,000
2,158,040
Revenue,
2017,
5%,
12/01/46
........................................
5,000,000
5,815,900
Maryland
Community
Development
Administration
,
Revenue,
2019
D,
3%,
7/01/39
........................................
1,500,000
1,593,225
Revenue,
2019
D,
3.2%,
7/01/44
......................................
1,000,000
1,071,090
Maryland
Community
Development
Administration
Local
Government
Infrastructure
,
Revenue,
2014
A-2,
5%,
6/01/34
......................................
3,500,000
3,895,990
Revenue,
2017
A-1,
4%,
6/01/47
......................................
2,300,000
2,531,840
Revenue,
2018A-1,
5%,
6/01/48
.......................................
1,310,000
1,607,855
Revenue,
Senior
Lien,
2019
B-1,
4%,
6/01/49
.............................
3,000,000
3,444,030
Maryland
Economic
Development
Corp.
,
Revenue,
2012,
Refunding,
5%,
7/01/27
.................................
1,500,000
1,570,245
Revenue,
2012,
Refunding,
5%,
7/01/33
.................................
2,495,000
2,588,213
Revenue,
2016,
Refunding,
AGMC
Insured,
5%,
6/01/35
....................
4,225,000
4,931,674
Revenue,
2016,
Refunding,
AGMC
Insured,
5%,
6/01/43
....................
3,305,000
3,793,743
Revenue,
Senior
Lien,
2012,
Refunding,
5%,
7/01/27
.......................
4,750,000
4,972,442
Revenue,
Senior
Lien,
2012,
Refunding,
5%,
7/01/34
.......................
2,150,000
2,228,260
Revenue,
Senior
Lien,
2013,
Refunding,
5%,
10/01/33
......................
5,000,000
5,303,050
University
Park
Phase
I
&
II
at
Salisbury
University,
Revenue,
2013,
Refunding,
5%,
6/01/34
........................................................
2,040,000
2,144,815
West
Village
&
Millennium
Hall
Student
Housing
at
Towson
University,
Revenue,
Senior
Lien,
2012,
5%,
7/01/27
......................................
1,145,000
1,177,816
Maryland
Environmental
Service
,
Revenue
,
2011
,
5
%
,
11/01/30
.................
3,935,000
3,963,725
Maryland
Health
&
Higher
Educational
Facilities
Authority
,
Adventist
Healthcare
Obligated
Group,
Revenue,
2016
A,
5.5%,
1/01/46
.........
9,750,000
10,844,535
Charlestown
Community,
Inc.,
Revenue,
2016
A,
Refunding,
5%,
1/01/45
........
4,170,000
4,641,210
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Maryland
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
95
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Maryland
(continued)
Maryland
Health
&
Higher
Educational
Facilities
Authority,
(continued)
Goucher
College,
Revenue,
2012A,
5%,
7/01/34
..........................
$
1,500,000
$
1,572,075
Goucher
College,
Revenue,
2017
A,
Refunding,
5%,
7/01/44
.................
7,470,000
8,452,604
Johns
Hopkins
Health
System
Obligated
Group,
Revenue,
2015A,
Refunding,
5%,
5/15/37
........................................................
10,000,000
11,487,600
Johns
Hopkins
Medical
Institutional
Parking
System,
Revenue,
2001,
AMBAC
Insured,
5%,
7/01/27
..............................................
655,000
661,196
Johns
Hopkins
Medical
Institutional
Parking
System,
Revenue,
2004,
AMBAC
Insured,
5%,
7/01/34
..............................................
5,000,000
5,047,550
Johns
Hopkins
Medical
Institutional
Parking
System,
Revenue,
2004
B,
AMBAC
Insured,
5%,
7/01/38
..............................................
6,200,000
6,205,952
Johns
Hopkins
University,
Revenue,
2012A,
Pre-Refunded,
5%,
7/01/37
........
5,000,000
5,440,250
Johns
Hopkins
University,
Revenue,
2012A,
Pre-Refunded,
5%,
7/01/41
........
15,000,000
16,320,750
Johns
Hopkins
University,
Revenue,
2013
B,
5%,
7/01/38
....................
5,000,000
5,512,600
LifeBridge
Health
Obligated
Group,
Revenue,
2016,
Refunding,
5%,
7/01/47
.....
4,000,000
4,603,040
LifeBridge
Health
Obligated
Group,
Revenue,
2017,
Refunding,
5%,
7/01/44
.....
2,000,000
2,356,720
Loyola
University
Maryland,
Inc.,
Revenue,
2012A,
Pre-Refunded,
5%,
10/01/39
..
5,275,000
5,788,838
Loyola
University
Maryland,
Inc.,
Revenue,
2014,
Refunding,
5%,
10/01/45
......
2,250,000
2,454,862
Loyola
University
Maryland,
Inc.,
Revenue,
2019
A,
Refunding,
5%,
10/01/49
.....
2,000,000
2,367,920
Luminis
Health
Obligated
Group,
Revenue,
2014,
Refunding,
5%,
7/01/39
.......
10,000,000
11,135,600
Maryland
Institute
College
of
Art,
Revenue,
2012,
5%,
6/01/29
................
1,000,000
1,055,360
Maryland
Institute
College
of
Art,
Revenue,
2016,
Refunding,
4%,
6/01/42
.......
5,325,000
5,540,822
MedStar
Health
Obligated
Group,
Revenue,
1997,
AMBAC
Insured,
ETM,
5%,
7/01/27
........................................................
8,930,000
10,546,419
MedStar
Health
Obligated
Group,
Revenue,
2013A,
5%,
8/15/38
..............
5,000,000
5,542,300
MedStar
Health
Obligated
Group,
Revenue,
2017
A,
5%,
5/15/45
..............
5,000,000
5,835,950
Meritus
Medical
Center
Obligated
Group,
Revenue,
2015,
Refunding,
5%,
7/01/45
.
8,535,000
9,542,557
Peninsula
Regional
Health
System
Obligated
Group,
Revenue,
2015,
Refunding,
5%,
7/01/45
........................................................
6,330,000
6,966,102
Trinity
Health
Corp.
Obligated
Group,
Revenue,
2017
MD,
5%,
12/01/46
........
1,680,000
1,999,906
University
of
Maryland
Medical
System
Obligated
Group,
Revenue,
2015,
Refunding,
5%,
7/01/35
....................................................
2,100,000
2,418,213
University
of
Maryland
Medical
System
Obligated
Group,
Revenue,
2017
B,
Refunding,
5%,
7/01/39
............................................
10,000,000
11,835,600
University
of
Maryland
Medical
System
Obligated
Group,
Revenue,
2017
D,
4%,
7/01/48
........................................................
5,000,000
5,503,500
Maryland
Industrial
Development
Financing
Authority
,
McDonogh
School,
Inc.,
Revenue,
2019,
Refunding,
4%,
9/01/43
..............
1,100,000
1,266,474
McDonogh
School,
Inc.,
Revenue,
2019,
Refunding,
4%,
9/01/48
..............
610,000
697,718
Maryland
Stadium
Authority
,
Baltimore
City
Public
School
Construction
Financing
Fund
,
Revenue
,
2016
,
Pre-Refunded
,
5
%
,
5/01/46
..............................
10,085,000
12,725,556
Maryland
State
Transportation
Authority
,
Revenue
,
2020
,
4
%
,
7/01/45
............
3,000,000
3,539,850
State
of
Maryland
,
GO
,
2020A
,
5
%
,
8/01/35
...............................
5,000,000
6,769,650
Washington
Suburban
Sanitary
Commission
,
Revenue,
Second
Series,
2016,
5%,
6/01/37
.............................
5,000,000
6,084,000
Revenue,
Second
Series,
2016,
4%,
6/01/43
.............................
8,070,000
9,085,610
395,831,110
U.S.
Territories
3.4%
District
of
Columbia
2.3%
Washington
Metropolitan
Area
Transit
Authority
,
Revenue,
2017B,
5%,
7/01/42
........................................
5,000,000
6,072,750
Revenue,
2020A,
5%,
7/15/45
........................................
3,000,000
3,846,540
9,919,290
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Maryland
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
96
s
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
U.S.
Territories
(continued)
Puerto
Rico
1.1%
b
Puerto
Rico
Electric
Power
Authority
,
Revenue,
WW-RSA-1,
5.5%,
7/01/38
...................................
$
4,570,000
$
3,170,437
Revenue,
XX-RSA-1,
5.25%,
7/01/40
...................................
1,895,000
1,309,919
4,480,356
Total
U.S.
Territories
....................................................................
14,399,646
Total
Municipal
Bonds
(Cost
$387,322,638)
.....................................
410,230,756
a
a
a
a
Short
Term
Investments
1.2%
Municipal
Bonds
1.2%
Maryland
1.2%
c
County
of
Montgomery
,
GO
,
2017
E
,
SPA
US
Bank
NA
,
Daily
VRDN
and
Put
,
0.01
%
,
11/01/37
........................................................
675,000
675,000
c
Maryland
Health
&
Higher
Educational
Facilities
Authority
,
University
of
Maryland
Medical
System
Obligated
Group
,
Revenue
,
2008D
,
LOC
TD
Bank
NA
,
Daily
VRDN
and
Put
,
0.02
%
,
7/01/41
.............................................
4,275,000
4,275,000
4,950,000
Total
Municipal
Bonds
(Cost
$4,950,000)
.......................................
4,950,000
Total
Short
Term
Investments
(Cost
$4,950,000
)
.................................
4,950,000
a
Total
Investments
(Cost
$392,272,638)
98.7%
...................................
$415,180,756
Other
Assets,
less
Liabilities
1.3%
.............................................
5,655,369
Net
Assets
100.0%
...........................................................
$420,836,125
See
Abbreviations
on
page
159
.
a
The
maturity
date
shown
represents
the
mandatory
put
date.
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
Missouri
Tax-Free
Income
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
97
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
Year
Ended
February
28,
2019
b
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
..........................................
$12.09
$11.47
$11.41
Income
from
investment
operations
c
:
Net
investment
income
d
..................................................
0.14
0.31
0.16
Net
realized
and
unrealized
gains
(losses)
....................................
(0.17)
0.63
0.06
Total
from
investment
operations
.............................................
(0.03)
0.94
0.22
Less
distributions
from:
Net
investment
income
...................................................
(0.15)
(0.32)
(0.16)
Net
asset
value,
end
of
period
...............................................
$11.91
$12.09
$11.47
Total
return
e
............................................................
(0.27)%
8.32%
1.98%
Ratios
to
average
net
assets
f
Expenses
g
.............................................................
0.81%
0.81%
0.84%
Net
investment
income
....................................................
2.44%
2.62%
2.96%
Supplemental
data
Net
assets,
end
of
period
(000’s)
.............................................
$146,532
$122,845
$63,400
Portfolio
turnover
rate
.....................................................
11.65%
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
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
98
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
2019
2018
2017
2016
a
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$12.09
$11.46
$11.38
$11.74
$12.05
$12.21
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.15
0.33
0.35
0.36
0.42
0.45
Net
realized
and
unrealized
gains
(losses)
(0.19)
0.64
0.09
(0.34)
(0.30)
(0.18)
Total
from
investment
operations
........
(0.04)
0.97
0.44
0.02
0.12
0.27
Less
distributions
from:
Net
investment
income
..............
(0.15)
(0.34)
(0.36)
(0.38)
(0.43)
(0.43)
Net
asset
value,
end
of
period
..........
$11.90
$12.09
$11.46
$11.38
$11.74
$12.05
Total
return
d
.......................
(0.27)%
8.58%
3.90%
0.12%
0.94%
2.26%
Ratios
to
average
net
assets
e
Expenses
.........................
0.66%
f
0.66%
f
0.69%
f
0.66%
0.65%
0.64%
Net
investment
income
...............
2.60%
2.77%
3.11%
3.05%
3.52%
3.72%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$670,386
$708,399
$700,839
$793,226
$873,204
$880,848
Portfolio
turnover
rate
................
11.65%
14.83%
9.79%
20.04%
11.66%
7.97%
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,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Missouri
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
99
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
2019
2018
2017
2016
a
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$12.21
$11.58
$11.49
$11.86
$12.17
$12.32
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.12
0.26
0.29
0.29
0.36
0.38
Net
realized
and
unrealized
gains
(losses)
(0.19)
0.65
0.09
(0.35)
(0.31)
(0.17)
Total
from
investment
operations
........
(0.07)
0.91
0.38
(0.06)
0.05
0.21
Less
distributions
from:
Net
investment
income
..............
(0.12)
(0.28)
(0.29)
(0.31)
(0.36)
(0.36)
Net
asset
value,
end
of
period
..........
$12.02
$12.21
$11.58
$11.49
$11.86
$12.17
Total
return
d
.......................
(0.54)%
7.92%
3.37%
(0.53)%
0.38%
1.77%
Ratios
to
average
net
assets
e
Expenses
.........................
1.21%
f
1.21%
f
1.24%
f
1.21%
1.20%
1.19%
Net
investment
income
...............
2.03%
2.22%
2.56%
2.50%
2.97%
3.17%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$83,799
$104,721
$108,739
$149,306
$169,821
$167,284
Portfolio
turnover
rate
................
11.65%
14.83%
9.79%
20.04%
11.66%
7.97%
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,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Missouri
Tax-Free
Income
Fund
(continued)
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The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
100
In
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
Year
Ended
February
28,
2018
b
2020
a
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
..............................
$12.10
$11.47
$11.38
$11.72
Income
from
investment
operations
c
:
Net
investment
income
d
......................................
0.16
0.34
0.37
0.22
Net
realized
and
unrealized
gains
(losses)
........................
(0.19)
0.65
0.09
(0.35)
Total
from
investment
operations
.................................
(0.03)
0.99
0.46
(0.13)
Less
distributions
from:
Net
investment
income
.......................................
(0.16)
(0.36)
(0.37)
(0.21)
Net
asset
value,
end
of
period
...................................
$11.91
$12.10
$11.47
$11.38
Total
return
e
................................................
(0.21)%
8.71%
4.12%
(1.11)%
Ratios
to
average
net
assets
f
Expenses
before
waiver
and
payments
by
affiliates
...................
0.54%
0.54%
0.55%
0.55%
Expenses
net
of
waiver
and
payments
by
affiliates
....................
0.53%
g
0.53%
g
0.54%
g
0.53%
Net
investment
income
........................................
2.72%
2.90%
3.26%
3.18%
Supplemental
data
Net
assets,
end
of
period
(000’s)
.................................
$27,777
$23,700
$18,929
$17,534
Portfolio
turnover
rate
.........................................
11.65%
14.83%
9.79%
20.04%
a
For
the
year
ended
February
29.
b
For
the
period
August
1,
2017
(effective
date)
to
February
28,
2018.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Missouri
Tax-Free
Income
Fund
(continued)
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The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
101
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
2019
2018
2017
2016
a
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$12.09
$11.47
$11.38
$11.75
$12.06
$12.22
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.16
0.34
0.37
0.37
0.44
0.46
Net
realized
and
unrealized
gains
(losses)
(0.18)
0.63
0.09
(0.35)
(0.31)
(0.18)
Total
from
investment
operations
........
(0.02)
0.97
0.46
0.02
0.13
0.28
Less
distributions
from:
Net
investment
income
..............
(0.16)
(0.35)
(0.37)
(0.39)
(0.44)
(0.44)
Net
asset
value,
end
of
period
..........
$11.91
$12.09
$11.47
$11.38
$11.75
$12.06
Total
return
d
.......................
(0.14)%
8.59%
4.09%
0.12%
1.04%
2.37%
Ratios
to
average
net
assets
e
Expenses
.........................
0.56%
f
0.56%
f
0.59%
f
0.56%
0.55%
0.54%
Net
investment
income
...............
2.69%
2.87%
3.21%
3.15%
3.62%
3.82%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$77,580
$82,970
$60,117
$72,460
$83,686
$46,051
Portfolio
turnover
rate
................
11.65%
14.83%
9.79%
20.04%
11.66%
7.97%
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
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited),
August
31,
2020
Franklin
Missouri
Tax-Free
Income
Fund
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
102
FR
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
97.7%
Missouri
95.3%
Affton
School
District
No.
101
,
GO,
2017
A,
Refunding,
5%,
3/01/32
...................................
$
1,500,000
$
1,892,325
GO,
2017
A,
Refunding,
5%,
3/01/33
...................................
1,595,000
1,999,141
GO,
2017
A,
Refunding,
5%,
3/01/34
...................................
1,700,000
2,124,252
GO,
2017
A,
Refunding,
5%,
3/01/35
...................................
1,810,000
2,253,034
GO,
2017
A,
Refunding,
5%,
3/01/36
...................................
1,920,000
2,378,035
Belton
School
District
No.
124
,
GO,
2020
A,
4%,
3/01/39
............................................
1,500,000
1,850,490
GO,
2020
A,
4%,
3/01/40
............................................
1,200,000
1,475,952
Bi-State
Development
Agency
of
the
Missouri-Illinois
Metropolitan
District
,
Revenue,
2013A,
Pre-Refunded,
5%,
10/01/33
............................
14,425,000
15,861,874
Revenue,
2013A,
Pre-Refunded,
5%,
10/01/44
............................
10,000,000
10,996,100
Revenue,
2019,
Refunding,
5%,
10/01/44
................................
10,995,000
13,970,247
Revenue,
2019,
Refunding,
4%,
10/01/48
................................
10,000,000
11,446,000
Cape
Girardeau
County
Industrial
Development
Authority
,
Procter
&
Gamble
Co.
(The),
Revenue,
1998,
5.3%,
5/15/28
..................
6,875,000
6,898,788
St.
Francis
Medical
Center,
Revenue,
2013A,
5%,
6/01/33
...................
5,000,000
5,281,450
St.
Francis
Medical
Center,
Revenue,
2013A,
5%,
6/01/37
...................
11,000,000
11,579,700
St.
Francis
Medical
Center,
Revenue,
2016,
Refunding,
5%,
6/01/39
...........
5,110,000
5,938,944
Cape
Girardeau
County
School
District
No.
R-2
,
COP,
2020
A,
BAM
Insured,
4%,
4/01/39
................................
1,150,000
1,312,656
GO,
2018,
4%,
3/01/32
.............................................
1,000,000
1,199,130
GO,
2018,
4%,
3/01/33
.............................................
1,000,000
1,190,950
GO,
2018,
5%,
3/01/38
.............................................
2,195,000
2,764,712
Cape
Girardeau
School
District
No.
63
,
GO,
2019,
Refunding,
4%,
3/01/38
.....................................
650,000
756,873
GO,
2019,
Refunding,
4%,
3/01/39
.....................................
500,000
580,870
Center
School
District
No.
58
,
GO
,
2019A
,
Refunding
,
4
%
,
3/01/36
..............
3,910,000
4,537,829
City
of
Kansas
City
,
Sanitary
Sewer
System,
Revenue,
2011A,
Refunding,
5%,
1/01/37
.............
29,210,000
29,650,194
Sanitary
Sewer
System,
Revenue,
2018
A,
4%,
1/01/35
.....................
1,500,000
1,783,665
Sanitary
Sewer
System,
Revenue,
2018
A,
4%,
1/01/42
.....................
5,000,000
5,869,300
Water,
Revenue,
2017
A,
4%,
12/01/41
.................................
4,970,000
5,713,065
Water,
Revenue,
2020
A,
4%,
12/01/37
.................................
500,000
625,415
Water,
Revenue,
2020
A,
4%,
12/01/38
.................................
600,000
749,172
Water,
Revenue,
2020
A,
4%,
12/01/39
.................................
700,000
872,704
Water,
Revenue,
2020
A,
4%,
12/01/40
.................................
500,000
621,315
Water,
Revenue,
2020
A,
4%,
12/01/41
.................................
550,000
681,032
Water,
Revenue,
2020
A,
4%,
12/01/42
.................................
685,000
845,852
Water,
Revenue,
2020
A,
4%,
12/01/44
.................................
1,200,000
1,474,332
City
of
Marshfield
,
Waterworks
&
Sewer
System,
Revenue,
2020
B,
AGMC
Insured,
5%,
2/01/43
....
1,305,000
1,577,288
Waterworks
&
Sewer
System,
Revenue,
2020
B,
AGMC
Insured,
5%,
2/01/50
....
1,585,000
1,893,647
City
of
Peculiar
,
Water
&
Sewer,
Revenue,
2017,
AGMC
Insured,
4%,
6/01/39
.................
1,000,000
1,153,070
Water
&
Sewer,
Revenue,
2017,
AGMC
Insured,
4%,
6/01/42
.................
2,405,000
2,754,326
City
of
Sikeston
,
Electric
System,
Revenue,
2012,
Refunding,
5%,
6/01/21
....................
13,130,000
13,556,988
Electric
System,
Revenue,
2012,
Refunding,
5%,
6/01/22
....................
12,570,000
13,504,831
City
of
Springfield
,
Revenue,
2012,
5%,
4/01/31
.........................................
1,795,000
1,926,232
Revenue,
2012,
5%,
4/01/32
.........................................
1,885,000
2,022,511
City
of
St.
Charles
,
COP,
2020B,
Refunding,
4%,
2/01/36
...................................
1,500,000
1,792,275
COP,
2020B,
Refunding,
3%,
2/01/37
...................................
1,500,000
1,635,375
COP,
2020B,
Refunding,
3%,
2/01/38
...................................
2,200,000
2,387,660
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Missouri
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
103
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Missouri
(continued)
City
of
St.
Charles,
(continued)
COP,
2020B,
Refunding,
3%,
2/01/39
...................................
$
1,500,000
$
1,620,960
City
of
St.
Louis
,
Airport,
Revenue,
2005,
Refunding,
NATL
Insured,
5.5%,
7/01/29
..............
13,070,000
17,234,756
Airport,
Revenue,
2017A,
Refunding,
AGMC
Insured,
5%,
7/01/25
.............
5,000,000
5,938,250
Airport,
Revenue,
2017C,
Refunding,
AGMC
Insured,
5%,
7/01/42
.............
3,930,000
4,596,056
Airport,
Revenue,
2017C,
Refunding,
AGMC
Insured,
5%,
7/01/47
.............
10,770,000
12,510,970
Airport,
Revenue,
2017D,
Refunding,
AGMC
Insured,
5%,
7/01/33
.............
1,000,000
1,184,970
Airport,
Revenue,
2017D,
Refunding,
AGMC
Insured,
5%,
7/01/34
.............
1,415,000
1,672,587
Airport,
Revenue,
2017D,
Refunding,
AGMC
Insured,
5%,
7/01/36
.............
1,125,000
1,321,054
Airport,
Revenue,
2017D,
Refunding,
AGMC
Insured,
5%,
7/01/37
.............
1,000,000
1,171,080
Airport,
Revenue,
2019
A,
5%,
7/01/44
..................................
600,000
720,000
Airport,
Revenue,
2019
A,
5%,
7/01/49
..................................
2,500,000
2,982,050
Airport,
Revenue,
2019C,
Refunding,
5%,
7/01/27
.........................
1,705,000
2,107,670
Clay
County
Reorganized
School
District
No.
R-1
,
GO,
2017,
3%,
3/01/34
.............................................
1,670,000
1,778,517
GO,
2017,
3%,
3/01/35
.............................................
1,730,000
1,838,730
GO,
2017,
3%,
3/01/36
.............................................
1,540,000
1,632,816
GO,
2017,
3.125%,
3/01/37
..........................................
1,855,000
1,972,644
County
of
St.
Louis
,
Revenue
,
2020A
,
Refunding
,
2
%
,
12/01/33
.................
975,000
991,273
Curators
of
the
University
of
Missouri
(The)
,
Revenue
,
2011
,
Pre-Refunded
,
5
%
,
11/01/27
.....................................................
1,065,000
1,124,139
Ferguson
Reorganized
School
District
No.
R-2
,
GO,
2018,
4%,
5/01/32
.............................................
1,000,000
1,161,450
GO,
2018,
5%,
5/01/38
.............................................
2,250,000
2,738,790
Fort
Osage
School
District
No.
R-1
,
GO
,
2018
,
Refunding
,
5.5
%
,
3/01/38
.........
3,010,000
3,913,181
Greene
County
Reorganized
School
District
No.
R-2
Willard
,
GO
,
2018
,
4
%
,
3/01/30
.
1,000,000
1,190,250
Health
&
Educational
Facilities
Authority
of
the
State
of
Missouri
,
AT
Still
University
of
Health
Sciences,
Revenue,
2011,
Pre-Refunded,
5%,
10/01/26
3,095,000
3,256,311
AT
Still
University
of
Health
Sciences,
Revenue,
2011,
Pre-Refunded,
5.25%,
10/01/31
.......................................................
1,200,000
1,265,784
AT
Still
University
of
Health
Sciences,
Revenue,
2011,
Pre-Refunded,
5.25%,
10/01/41
.......................................................
4,500,000
4,746,690
AT
Still
University
of
Health
Sciences,
Revenue,
2014,
Pre-Refunded,
5%,
10/01/39
1,250,000
1,433,338
Bethesda
Health
Group,
Inc.
Obligated
Group,
Revenue,
2015,
5%,
8/01/40
......
1,650,000
1,720,109
Bethesda
Health
Group,
Inc.
Obligated
Group,
Revenue,
2015,
5%,
8/01/45
......
1,300,000
1,349,010
BJC
Healthcare
Obligated
Group,
Revenue,
2014,
5%,
1/01/44
...............
8,175,000
8,963,888
CoxHealth
Obligated
Group,
Revenue,
2013A,
5%,
11/15/38
.................
11,680,000
12,781,774
CoxHealth
Obligated
Group,
Revenue,
2013A,
5%,
11/15/44
.................
2,760,000
3,001,721
CoxHealth
Obligated
Group,
Revenue,
2015A,
Refunding,
5%,
11/15/39
.........
17,000,000
19,585,190
CoxHealth
Obligated
Group,
Revenue,
2019
A,
4%,
11/15/44
.................
5,000,000
5,610,450
Kansas
City
University
of
Medicine
and
Biosciences,
Revenue,
2017
A,
5%,
6/01/42
2,800,000
3,344,992
Kansas
City
University
of
Medicine
and
Biosciences,
Revenue,
2017
A,
5%,
6/01/47
4,875,000
5,784,529
Lake
Regional
Health
System,
Revenue,
2012,
5%,
2/15/34
..................
7,000,000
7,268,520
Lutheran
Senior
Services
Obligated
Group,
Revenue,
2011,
5.75%,
2/01/31
......
1,900,000
1,930,210
Lutheran
Senior
Services
Obligated
Group,
Revenue,
2011,
6%,
2/01/41
........
4,250,000
4,311,412
Lutheran
Senior
Services
Obligated
Group,
Revenue,
2016
B,
Refunding,
5%,
2/01/46
........................................................
11,575,000
12,388,838
Lutheran
Senior
Services
Obligated
Group,
Revenue,
2016A,
5%,
2/01/46
.......
4,000,000
4,281,240
Lutheran
Senior
Services
Obligated
Group,
Revenue,
2019
A,
5%,
2/01/34
.......
2,000,000
2,189,340
Lutheran
Senior
Services
Obligated
Group,
Revenue,
2019
A,
5%,
2/01/42
.......
1,500,000
1,626,600
Maryville
University
of
St.
Louis,
Revenue,
2015,
5%,
6/15/44
.................
5,000,000
5,526,100
Maryville
University
of
St.
Louis,
Revenue,
2019A,
5%,
6/15/45
...............
4,000,000
4,670,480
Maryville
University
of
St.
Louis,
Revenue,
2020A,
Refunding,
4%,
6/15/34
.......
4,345,000
4,895,120
Maryville
University
of
St.
Louis,
Revenue,
2020A,
Refunding,
4%,
6/15/38
.......
4,885,000
5,418,735
Mercy
Health,
Revenue,
2012,
4%,
11/15/42
.............................
8,000,000
8,407,440
Mercy
Health,
Revenue,
2014F,
5%,
11/15/45
.............................
25,000,000
27,918,250
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Missouri
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Semiannual
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)
Missouri
(continued)
Health
&
Educational
Facilities
Authority
of
the
State
of
Missouri,
(continued)
Mercy
Health,
Revenue,
2015
B,
Refunding,
5%,
2/01/45
....................
$
6,870,000
$
7,896,378
Mercy
Health,
Revenue,
2017
C,
Refunding,
5%,
11/15/47
...................
12,500,000
14,835,875
Mosaic
Health
System
Obligated
Group,
Revenue,
2019A,
Refunding,
4%,
2/15/54
4,000,000
4,469,160
SSM
Health
Care
Obligated
Group,
Revenue,
2018A,
5%,
6/01/48
.............
5,000,000
5,977,300
St.
Louis
University,
Revenue,
2015
A,
5%,
10/01/38
.......................
10,000,000
11,683,400
St.
Louis
University,
Revenue,
2017
A,
5%,
10/01/47
.......................
15,000,000
17,862,900
St.
Louis
University,
Revenue,
2019A,
5%,
10/01/46
........................
5,775,000
6,928,152
St.
Luke's
Health
System
Obligated
Group,
Revenue,
2016,
Refunding,
5%,
11/15/35
3,950,000
4,669,927
St.
Luke's
Health
System
Obligated
Group,
Revenue,
2018A,
Refunding,
5%,
11/15/43
.......................................................
2,000,000
2,417,340
University
of
Central
Missouri,
Revenue,
2013
C-2,
5%,
10/01/34
..............
5,000,000
5,599,750
Washington
University
(The),
Revenue,
2011B,
Pre-Refunded,
5%,
11/15/37
.....
10,000,000
10,580,100
Webster
University,
Revenue,
2011,
Pre-Refunded,
5%,
4/01/36
...............
7,000,000
7,193,200
a
Jackson
County
Reorganized
School
District
No.
7
,
GO
,
2020
,
Refunding
,
4
%
,
3/01/39
5,000,000
5,974,600
Jackson
County
School
District
No.
R-IV
Blue
Springs
,
GO,
2018
A,
5.5%,
3/01/36
...........................................
3,000,000
4,051,980
GO,
2018
A,
5.5%,
3/01/37
...........................................
2,000,000
2,691,640
Jefferson
City
School
District
,
GO
,
2018
,
5
%
,
3/01/38
........................
6,070,000
7,419,058
Joplin
Industrial
Development
Authority
,
Freeman
Health
System
Obligated
Group,
Revenue,
2011,
Pre-Refunded,
5.125%,
2/15/26
........................................................
6,000,000
6,132,540
Freeman
Health
System
Obligated
Group,
Revenue,
2011,
Pre-Refunded,
5%,
2/15/28
........................................................
1,150,000
1,174,760
Freeman
Health
System
Obligated
Group,
Revenue,
2011,
Pre-Refunded,
5.5%,
2/15/31
........................................................
2,055,000
2,103,888
Freeman
Health
System
Obligated
Group,
Revenue,
2015,
Refunding,
5%,
2/15/35
4,000,000
4,425,840
Joplin
Schools
,
GO
,
2017
,
Refunding
,
4
%
,
3/01/32
..........................
4,000,000
4,686,240
Kansas
City
Industrial
Development
Authority
,
Revenue,
2011-A,
Refunding,
5.5%,
9/01/29
.............................
5,000,000
5,256,100
Revenue,
2011-A,
Refunding,
5.5%,
9/01/30
.............................
12,000,000
12,614,640
Revenue,
2011-A,
Refunding,
5%,
9/01/32
...............................
3,000,000
3,138,120
Airport,
Revenue,
2019
B,
5%,
3/01/46
..................................
29,425,000
34,902,758
Airport,
Revenue,
2019
B,
AGMC
Insured,
5%,
3/01/49
.....................
3,000,000
3,598,800
Airport,
Revenue,
2019
B,
5%,
3/01/54
..................................
10,090,000
11,887,533
Liberty
Public
School
District
No.
53
,
GO
,
2018
,
4
%
,
3/01/37
...................
4,500,000
5,034,510
Metropolitan
St.
Louis
Sewer
District
,
Revenue,
2015
B,
Refunding,
5%,
5/01/38
...............................
8,770,000
10,384,206
Revenue,
2015
B,
Pre-Refunded,
5%,
5/01/45
............................
1,610,000
1,955,184
Revenue,
2015
B,
Refunding,
5%,
5/01/45
...............................
3,390,000
3,973,656
Revenue,
2016
C,
5%,
5/01/46
........................................
24,700,000
29,685,448
Revenue,
2017
A,
Refunding,
5%,
5/01/42
...............................
5,000,000
6,170,600
Revenue,
2017
A,
Refunding,
5%,
5/01/47
...............................
10,000,000
12,257,000
Revenue,
2019
B,
5%,
5/01/44
........................................
3,500,000
4,465,475
Revenue,
2019
B,
5%,
5/01/49
........................................
6,290,000
7,982,199
Missouri
Development
Finance
Board
,
City
of
Independence,
Revenue,
2012A,
5%,
6/01/37
.......................
5,000,000
5,319,650
Procter
&
Gamble
Co.
(The),
Revenue,
1999,
5.2%,
3/15/29
..................
3,000,000
3,942,570
Missouri
Housing
Development
Commission
,
Revenue,
2018
B,
GNMA
Insured,
4%,
11/01/38
...........................
1,375,000
1,530,911
Revenue,
2019
C,
GNMA
Insured,
3%,
11/01/44
...........................
3,965,000
4,155,201
Revenue,
2020
C,
GNMA
Insured,
2.4%,
11/01/45
.........................
2,300,000
2,317,388
Missouri
Joint
Municipal
Electric
Utility
Commission
,
Revenue,
2012,
Pre-Refunded,
5%,
1/01/32
..............................
3,600,000
3,656,592
Revenue,
2012,
Pre-Refunded,
5%,
1/01/37
..............................
3,400,000
3,453,448
Revenue,
2014A,
Refunding,
5%,
1/01/30
...............................
3,000,000
3,402,990
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Missouri
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
105
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Missouri
(continued)
Missouri
Joint
Municipal
Electric
Utility
Commission,
(continued)
Revenue,
2014A,
Refunding,
5%,
1/01/31
...............................
$
2,000,000
$
2,263,360
Revenue,
Refunding,
5%,
1/01/32
.....................................
11,500,000
13,270,660
Revenue,
2014A,
Refunding,
5%,
1/01/33
...............................
7,500,000
8,656,125
Revenue,
2014A,
Refunding,
5%,
1/01/34
...............................
2,000,000
2,249,160
Revenue,
2015
A,
Refunding,
5%,
12/01/35
..............................
7,335,000
8,546,815
Revenue,
2015A,
Refunding,
5%,
12/01/30
..............................
4,000,000
4,728,640
Revenue,
2015A,
Refunding,
5%,
12/01/31
..............................
6,000,000
7,067,460
Revenue,
2016
A,
Refunding,
5%,
12/01/40
..............................
27,950,000
32,556,160
Revenue,
2018,
5%,
12/01/43
........................................
2,000,000
2,355,080
Missouri
State
Environmental
Improvement
&
Energy
Resources
Authority
,
State
Revolving
Fund,
Revenue,
2000
B,
Refunding,
5.5%,
7/01/21
............
15,000
15,065
State
Revolving
Fund,
Revenue,
2008-A,
Refunding,
5.75%,
1/01/29
...........
190,000
190,847
State
Revolving
Fund,
Revenue,
2013A,
Refunding,
5%,
1/01/26
..............
2,315,000
2,629,284
Monarch-Chesterfield
Levee
District
,
Special
Tax
,
2015
,
Refunding
,
5
%
,
3/01/40
....
4,395,000
4,905,216
Move
Rolla
Transportation
Development
District
,
Revenue
,
2017
,
4.75
%
,
6/01/47
...
5,000,000
5,385,450
Pattonville
R-3
School
District
,
GO,
2018
A,
5%,
3/01/37
............................................
2,750,000
3,285,590
GO,
2018
A,
5%,
3/01/38
............................................
1,000,000
1,192,850
Raytown
C-2
School
District
,
GO,
2019A,
5%,
3/01/37
............................................
1,650,000
2,135,644
GO,
2019A,
5%,
3/01/38
............................................
2,500,000
3,221,325
GO,
2019A,
5%,
3/01/39
............................................
2,250,000
2,890,958
Riverside-
Quindaro
Bend
Levee
District
of
Platte
County
,
Special
Assessment,
2017,
Refunding,
5%,
3/01/26
........................
1,000,000
1,161,730
Special
Assessment,
2017,
Refunding,
5%,
3/01/29
........................
2,585,000
2,987,071
Southeast
Missouri
State
University
,
Revenue,
2020,
Refunding,
4%,
4/01/40
.................................
5,075,000
5,615,893
Revenue,
2020,
Refunding,
4%,
4/01/43
.................................
2,580,000
2,830,054
Springfield
School
District
No.
R-12
,
GO,
2013,
Refunding,
5%,
3/01/33
.....................................
1,000,000
1,113,660
GO,
2019,
5%,
3/01/37
.............................................
24,250,000
31,364,950
St.
Charles
County
School
District
No.
R-IV
Wentzville
,
GO
,
2018
,
Refunding
,
4
%
,
3/01/38
.........................................................
15,400,000
17,622,682
St.
Charles
School
District
,
GO
,
2017
,
4
%
,
3/01/36
..........................
2,000,000
2,263,400
St.
Louis
County
Industrial
Development
Authority
,
Friendship
Village
of
West
County,
Revenue,
2012,
Pre-Refunded,
5%,
9/01/42
...
3,165,000
3,458,332
Friendship
Village
St.
Louis
Obligated
Group,
Revenue,
2013A,
5.875%,
9/01/43
..
7,000,000
7,450,660
Friendship
Village
St.
Louis
Obligated
Group,
Revenue,
2017,
Refunding,
5%,
9/01/48
........................................................
7,095,000
7,471,177
St.
Louis
Municipal
Library
District
,
COP,
2020,
Refunding,
BAM
Insured,
4%,
3/15/44
.........................
1,450,000
1,647,157
COP,
2020,
Refunding,
BAM
Insured,
4%,
3/15/48
.........................
4,800,000
5,422,608
Washington
School
District
,
GO,
2019,
4%,
3/01/38
.............................................
3,000,000
3,419,100
GO,
2019,
4%,
3/01/39
.............................................
1,500,000
1,704,645
959,395,680
U.S.
Territories
2.4%
Guam
1.3%
Guam
Government
Waterworks
Authority
,
Revenue
,
2020
A
,
5
%
,
1/01/50
.........
5,790,000
7,047,935
Guam
Power
Authority
,
Revenue
,
2012A
,
Refunding
,
AGMC
Insured
,
5
%
,
10/01/25
..
5,420,000
5,857,774
12,905,709
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Missouri
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
106
s
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
U.S.
Territories
(continued)
Puerto
Rico
1.1%
b
Puerto
Rico
Electric
Power
Authority
,
Revenue,
WW-RSA-1,
5.5%,
7/01/38
...................................
$
15,225,000
$
10,562,344
Revenue,
XX-RSA-1,
5.25%,
7/01/40
...................................
310,000
214,287
10,776,631
Total
U.S.
Territories
....................................................................
23,682,340
Total
Municipal
Bonds
(Cost
$922,037,912)
.....................................
983,078,020
a
a
a
a
Short
Term
Investments
1.0%
Municipal
Bonds
1.0%
Missouri
1.0%
c
Health
&
Educational
Facilities
Authority
of
the
State
of
Missouri
,
Washington
University
(The)
,
Revenue
,
2003B
,
SPA
US
Bank
NA
,
Daily
VRDN
and
Put
,
0.05
%
,
2/15/33
..
10,435,000
10,435,000
Total
Municipal
Bonds
(Cost
$10,435,000)
......................................
10,435,000
Total
Short
Term
Investments
(Cost
$10,435,000
)
................................
10,435,000
a
Total
Investments
(Cost
$932,472,912)
98.7%
...................................
$993,513,020
Other
Assets,
less
Liabilities
1.3%
.............................................
12,560,572
Net
Assets
100.0%
...........................................................
$1,006,073,592
See
Abbreviations
on
page
159
.
a
Security
purchased
on
a
when-issued
basis.
See
Note
1(b).
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
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accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
107
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
Year
Ended
February
28,
2019
b
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
..........................................
$11.84
$11.30
$11.26
Income
from
investment
operations
c
:
Net
investment
income
d
..................................................
0.14
0.28
0.15
Net
realized
and
unrealized
gains
(losses)
....................................
(0.11)
0.56
0.04
Total
from
investment
operations
.............................................
0.03
0.84
0.19
Less
distributions
from:
Net
investment
income
...................................................
(0.14)
(0.30)
(0.15)
Net
asset
value,
end
of
period
...............................................
$11.73
$11.84
$11.30
Total
return
e
............................................................
0.23%
7.50%
1.77%
Ratios
to
average
net
assets
f
Expenses
g
.............................................................
0.82%
0.82%
0.83%
Net
investment
income
....................................................
2.33%
2.48%
2.86%
Supplemental
data
Net
assets,
end
of
period
(000’s)
.............................................
$127,744
$101,981
$49,192
Portfolio
turnover
rate
.....................................................
7.32%
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
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
108
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
2019
2018
2017
2016
a
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$11.84
$11.30
$11.28
$11.70
$11.97
$12.15
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.15
0.30
0.34
0.35
0.41
0.43
Net
realized
and
unrealized
gains
(losses)
(0.12)
0.56
0.03
(0.40)
(0.27)
(0.19)
Total
from
investment
operations
........
0.03
0.86
0.37
(0.05)
0.14
0.24
Less
distributions
from:
Net
investment
income
..............
(0.14)
(0.32)
(0.35)
(0.37)
(0.41)
(0.42)
Net
asset
value,
end
of
period
..........
$11.73
$11.84
$11.30
$11.28
$11.70
$11.97
Total
return
d
.......................
0.31%
7.66%
3.32%
(0.45)%
1.19%
2.01%
Ratios
to
average
net
assets
e
Expenses
.........................
0.67%
f
0.67%
f
0.68%
f
0.66%
0.64%
0.64%
Net
investment
income
...............
2.50%
2.63%
3.01%
3.00%
3.41%
3.62%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$540,796
$567,825
$577,052
$660,167
$756,109
$794,675
Portfolio
turnover
rate
................
7.32%
15.22%
11.61%
10.07%
18.38%
7.23%
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,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
North
Carolina
Tax-Free
Income
Fund
(continued)
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The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
109
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
2019
2018
2017
2016
a
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$12.04
$11.49
$11.46
$11.88
$12.15
$12.33
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.11
0.24
0.28
0.29
0.35
0.37
Net
realized
and
unrealized
gains
(losses)
(0.11)
0.56
0.03
(0.41)
(0.27)
(0.20)
Total
from
investment
operations
........
—
0.80
0.31
(0.12)
0.08
0.17
Less
distributions
from:
Net
investment
income
..............
(0.11)
(0.25)
(0.28)
(0.30)
(0.35)
(0.35)
Net
asset
value,
end
of
period
..........
$11.93
$12.04
$11.49
$11.46
$11.88
$12.15
Total
return
d
.......................
0.03%
7.07%
2.78%
(1.00)%
0.61%
1.43%
Ratios
to
average
net
assets
e
Expenses
.........................
1.21%
f
1.22%
f
1.23%
f
1.21%
1.19%
1.19%
Net
investment
income
...............
1.93%
2.08%
2.46%
2.45%
2.86%
3.07%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$70,204
$90,244
$105,371
$159,556
$197,705
$206,283
Portfolio
turnover
rate
................
7.32%
15.22%
11.61%
10.07%
18.38%
7.23%
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,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
North
Carolina
Tax-Free
Income
Fund
(continued)
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The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
110
In
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
2019
2018
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
..............................
$11.84
$11.29
$11.27
$11.59
Income
from
investment
operations
b
:
Net
investment
income
c
......................................
0.15
0.32
0.35
0.22
Net
realized
and
unrealized
gains
(losses)
........................
(0.11)
0.56
0.03
(0.33)
Total
from
investment
operations
.................................
0.04
0.88
0.38
(0.11)
Less
distributions
from:
Net
investment
income
.......................................
(0.15)
(0.33)
(0.36)
(0.21)
Net
asset
value,
end
of
period
...................................
$11.73
$11.84
$11.29
$11.27
Total
return
d
................................................
0.38%
7.90%
3.45%
(0.97)%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
...................
0.55%
0.55%
0.56%
0.56%
Expenses
net
of
waiver
and
payments
by
affiliates
....................
0.53%
f
0.54%
f
0.54%
f
0.53%
Net
investment
income
........................................
2.61%
2.76%
3.15%
3.13%
Supplemental
data
Net
assets,
end
of
period
(000’s)
.................................
$12,666
$10,948
$7,776
$9,117
Portfolio
turnover
rate
.........................................
7.32%
15.22%
11.61%
10.07%
a
For
the
year
ended
February
29.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
North
Carolina
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
111
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
2019
2018
2017
2016
a
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$11.84
$11.30
$11.28
$11.70
$11.97
$12.15
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.15
0.31
0.35
0.36
0.42
0.45
Net
realized
and
unrealized
gains
(losses)
(0.11)
0.56
0.03
(0.40)
(0.26)
(0.20)
Total
from
investment
operations
........
0.04
0.87
0.38
(0.04)
0.16
0.25
Less
distributions
from:
Net
investment
income
..............
(0.15)
(0.33)
(0.36)
(0.38)
(0.43)
(0.43)
Net
asset
value,
end
of
period
..........
$11.73
$11.84
$11.30
$11.28
$11.70
$11.97
Total
return
d
.......................
0.36%
7.77%
3.42%
(0.36)%
1.29%
2.12%
Ratios
to
average
net
assets
e
Expenses
.........................
0.57%
f
0.57%
f
0.58%
f
0.56%
0.54%
0.54%
Net
investment
income
...............
2.59%
2.73%
3.11%
3.10%
3.51%
3.72%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$114,210
$105,851
$84,506
$80,819
$109,365
$89,119
Portfolio
turnover
rate
................
7.32%
15.22%
11.61%
10.07%
18.38%
7.23%
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
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited),
August
31,
2020
Franklin
North
Carolina
Tax-Free
Income
Fund
franklintempleton.com
Semiannual
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
93.6%
North
Carolina
92.8%
Cape
Fear
Public
Utility
Authority
,
Revenue,
2011,
Pre-Refunded,
5%,
8/01/36
..............................
$
8,000,000
$
8,345,120
Revenue,
2014A,
Pre-Refunded,
5%,
6/01/40
.............................
2,250,000
2,649,285
Revenue,
2019A,
Refunding,
4%,
8/01/44
...............................
8,000,000
9,358,720
Charlotte-Mecklenburg
Hospital
Authority
(The)
,
Atrium
Health
Obligated
Group,
Revenue,
2011A,
5.125%,
1/15/37
.............
4,000,000
4,052,240
Atrium
Health
Obligated
Group,
Revenue,
2011A,
5.25%,
1/15/42
.............
10,000,000
10,125,100
Atrium
Health
Obligated
Group,
Revenue,
2016
A,
Refunding,
5%,
1/15/40
.......
20,000,000
23,149,600
Atrium
Health
Obligated
Group,
Revenue,
2018
A,
Refunding,
5%,
1/15/36
.......
5,000,000
6,265,100
City
of
Charlotte
,
COP,
2008A,
Refunding,
5%,
6/01/33
...................................
2,500,000
2,508,750
COP,
2019A,
Refunding,
5%,
6/01/44
...................................
8,250,000
10,284,698
Airport
Special
Facilities,
Revenue,
2010-A,
5.5%,
7/01/34
...................
3,765,000
3,778,441
Airport
Special
Facilities,
Revenue,
2010-A,
5%,
7/01/39
....................
3,000,000
3,008,880
Airport
Special
Facilities,
Revenue,
2011A,
5%,
7/01/41
.....................
10,000,000
10,284,200
Airport
Special
Facilities,
Revenue,
2019A,
4%,
7/01/44
.....................
3,550,000
4,034,184
Airport
Special
Facilities,
Revenue,
2019A,
5%,
7/01/49
.....................
4,460,000
5,490,394
Airport
Special
Facilities,
Revenue,
2019B,
4%,
7/01/44
.....................
5,515,000
6,173,491
Storm
Water,
Revenue,
2014,
Refunding,
5%,
12/01/39
.....................
7,970,000
9,308,960
Water
&
Sewer
System,
Revenue,
2009B,
5%,
7/01/38
......................
10,000,000
10,032,400
Water
&
Sewer
System,
Revenue,
2015,
Refunding,
5%,
7/01/40
..............
10,000,000
11,779,600
Water
&
Sewer
System,
Revenue,
2018,
Refunding,
4%,
7/01/37
..............
5,000,000
5,972,950
City
of
Durham
,
Water
&
Sewer
Utility
System
,
Revenue
,
2011
,
Pre-Refunded
,
5
%
,
6/01/41
.........................................................
4,000,000
4,144,800
City
of
Fayetteville
,
Public
Works
Commission
,
Revenue
,
2018
,
Refunding
,
4
%
,
3/01/41
4,015,000
4,612,191
City
of
Greensboro
,
GO,
2018
B,
5%,
10/01/29
...........................................
5,000,000
6,684,050
Combined
Water
&
Sewer
System,
Revenue,
2020A,
Refunding,
4%,
6/01/45
....
5,000,000
6,006,500
City
of
Raleigh
,
GO,
2016
A,
Refunding,
5%,
9/01/26
...................................
5,000,000
6,353,400
Combined
Enterprise
System,
Revenue,
2011,
Pre-Refunded,
5%,
3/01/40
.......
11,915,000
12,202,747
Combined
Enterprise
System,
Revenue,
2013
A,
Pre-Refunded,
5%,
3/01/43
.....
10,000,000
11,195,100
Combined
Enterprise
System,
Revenue,
2016
A,
4%,
3/01/46
.................
5,000,000
5,688,250
Combined
Enterprise
System,
Revenue,
2016
B,
Refunding,
4%,
3/01/34
........
1,000,000
1,177,900
City
of
Salisbury
,
Combined
Enterprise
System
,
Revenue
,
2020
,
Refunding
,
5
%
,
2/01/45
.........................................................
1,000,000
1,278,090
City
of
Wilmington
,
Storm
Water
Fee
,
Revenue
,
2007
,
Refunding
,
AMBAC
Insured
,
5
%
,
6/01/33
.........................................................
225,000
225,783
City
of
Winston-Salem
,
Water
&
Sewer
System,
Revenue,
2014A,
Pre-Refunded,
5%,
6/01/33
..........
2,350,000
2,767,031
Water
&
Sewer
System,
Revenue,
2016A,
Refunding,
4%,
6/01/34
.............
1,350,000
1,562,598
Water
&
Sewer
System,
Revenue,
2016A,
Refunding,
4%,
6/01/37
.............
5,000,000
5,710,350
Water
&
Sewer
System,
Revenue,
2017,
4%,
6/01/47
.......................
10,000,000
11,421,100
County
of
Buncombe
,
Revenue
,
2015
,
Refunding
,
5
%
,
6/01/34
.................
3,000,000
3,567,330
County
of
Dare
,
Utilities
System
,
Revenue
,
2011
,
Pre-Refunded
,
5
%
,
2/01/41
......
5,000,000
5,089,950
County
of
Durham
,
GO,
2019,
4%,
6/01/36
.............................................
500,000
610,365
GO,
2019,
4%,
6/01/37
.............................................
450,000
547,371
GO,
2019,
4%,
6/01/39
.............................................
700,000
843,101
County
of
Guilford
,
GO
,
2017
B
,
4
%
,
5/01/33
...............................
5,000,000
5,943,750
County
of
Lincoln
,
Enterprise
System,
Revenue,
2020,
Refunding,
3%,
8/01/38
..................
400,000
442,040
Enterprise
System,
Revenue,
2020,
Refunding,
3%,
8/01/41
..................
480,000
524,630
County
of
Mecklenburg
,
GO,
2015A,
5%,
4/01/28
............................................
5,000,000
6,052,950
GO,
2017
A,
4%,
4/01/30
............................................
5,000,000
6,024,100
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
North
Carolina
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
113
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
North
Carolina
(continued)
County
of
New
Hanover
,
New
Hanover
Regional
Medical
Center,
Revenue,
2017,
Refunding,
5%,
10/01/42
.
$
5,000,000
$
5,941,450
New
Hanover
Regional
Medical
Center,
Revenue,
2017,
Refunding,
5%,
10/01/47
.
13,565,000
16,012,804
County
of
Union
,
Enterprise
System,
Revenue,
2015,
5%,
6/01/34
..........................
1,000,000
1,208,550
Enterprise
System,
Revenue,
2019,
4%,
6/01/41
..........................
3,200,000
3,762,848
Enterprise
System,
Revenue,
2019,
4%,
6/01/44
..........................
2,325,000
2,714,112
County
of
Wake
,
GO,
2018A,
5%,
3/01/30
............................................
8,000,000
10,480,080
GO,
2019
A,
5%,
3/01/32
............................................
7,870,000
10,493,779
Revenue,
2019,
4%,
9/01/38
.........................................
5,250,000
6,273,330
Greenville
Utilities
Commission
,
Revenue
,
2019
,
5
%
,
8/01/44
..................
4,750,000
6,024,378
Nash
Health
Care
Systems
,
Revenue,
2003,
AGMC
Insured,
5%,
11/01/30
............................
2,250,000
2,257,200
Revenue,
2012,
5%,
11/01/41
........................................
5,000,000
5,184,700
North
Carolina
Capital
Facilities
Finance
Agency
,
Davidson
College
Trustees,
Revenue,
2012,
5%,
3/01/40
....................
4,000,000
4,251,640
Davidson
College
Trustees,
Revenue,
2014,
Refunding,
5%,
3/01/45
...........
3,500,000
3,713,675
Duke
University,
Revenue,
2015
B,
Pre-Refunded,
5%,
10/01/41
..............
13,585,000
16,778,698
Duke
University,
Revenue,
2016
B,
Refunding,
5%,
7/01/42
..................
10,000,000
12,293,300
Duke
University,
Revenue,
2016
B,
Refunding,
4%,
10/01/44
.................
5,085,000
5,754,084
Duke
University,
Revenue,
2016
B,
Refunding,
5%,
10/01/44
.................
11,000,000
13,486,330
Wake
Forest
University,
Revenue,
2016,
Refunding,
4%,
1/01/35
..............
5,000,000
5,668,950
Wake
Forest
University,
Revenue,
2016,
Refunding,
4%,
1/01/38
..............
5,500,000
6,185,740
Wake
Forest
University,
Revenue,
2016,
Refunding,
4%,
1/01/39
..............
5,250,000
5,892,127
Wake
Forest
University,
Revenue,
2018,
4%,
1/01/48
.......................
20,000,000
22,608,000
Wake
Forest
University,
Revenue,
2018,
5%,
1/01/48
.......................
13,500,000
16,481,880
North
Carolina
Housing
Finance
Agency
,
Revenue,
41,
GNMA
Insured,
3.55%,
7/01/44
.............................
6,460,000
6,975,185
Revenue,
41,
GNMA
Insured,
3.625%,
7/01/49
............................
9,945,000
10,730,556
Revenue,
42,
GNMA
Insured,
2.45%,
7/01/34
.............................
1,000,000
1,042,610
Revenue,
42,
GNMA
Insured,
2.625%,
7/01/39
............................
4,000,000
4,165,320
Revenue,
42,
GNMA
Insured,
2.85%,
1/01/43
.............................
3,500,000
3,616,935
Revenue,
43,
GNMA
Insured,
2.8%,
1/01/40
..............................
6,000,000
6,240,420
Revenue,
43,
GNMA
Insured,
2.95%,
7/01/43
.............................
2,750,000
2,864,592
Revenue,
44,
3%,
7/01/46
...........................................
3,000,000
3,158,130
North
Carolina
Medical
Care
Commission
,
Appalachian
Regional
Healthcare
System
Obligated
Group,
Revenue,
2011A,
Pre-
Refunded,
6.5%,
7/01/31
..........................................
5,000,000
5,254,350
Appalachian
Regional
Healthcare
System
Obligated
Group,
Revenue,
2011A,
Pre-
Refunded,
6.625%,
7/01/34
.........................................
6,000,000
6,311,400
Duke
University
Health
System,
Inc.,
Revenue,
2012
A,
Pre-Refunded,
5%,
6/01/42
10,000,000
10,840,400
Duke
University
Health
System,
Inc.,
Revenue,
2016
D,
Refunding,
4%,
6/01/42
...
7,000,000
7,739,900
Novant
Health
Obligated
Group,
Revenue,
2013
A,
Refunding,
5%,
11/01/46
.....
20,000,000
21,198,000
Novant
Health
Obligated
Group,
Revenue,
2019A,
4%,
11/01/49
..............
5,115,000
5,801,433
Novant
Health
Obligated
Group,
Revenue,
2019A,
4%,
11/01/52
..............
7,640,000
8,645,424
Pines
at
Davidson,
Inc.
Obligated
Group,
Revenue,
2019
A,
5%,
1/01/49
........
5,000,000
5,362,200
Presbyterian
Homes
Obligated
Group,
Revenue,
2016
C,
Refunding,
5%,
10/01/31
5,000,000
5,561,950
Rex
Hospital,
Inc.
Obligated
Group,
Revenue,
2020
A,
4%,
7/01/49
............
4,000,000
4,476,200
Scotland
Memorial
Hospital,
Inc.,
Revenue,
1999,
AGMC
Insured,
5.5%,
10/01/29
.
1,220,000
1,224,075
United
Methodist
Retirement
Homes,
Inc.
Obligated
Group
(The),
Revenue,
2017A,
Refunding,
5%,
10/01/37
...........................................
200,000
212,918
United
Methodist
Retirement
Homes,
Inc.
Obligated
Group
(The),
Revenue,
2017A,
Refunding,
5%,
10/01/42
...........................................
2,250,000
2,382,390
United
Methodist
Retirement
Homes,
Inc.
Obligated
Group
(The),
Revenue,
2017A,
Refunding,
5%,
10/01/47
...........................................
2,540,000
2,678,633
Vidant
Health
Obligated
Group,
Revenue,
2012
A,
Pre-Refunded,
5%,
6/01/36
....
5,000,000
5,415,600
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
North
Carolina
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Semiannual
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)
North
Carolina
(continued)
North
Carolina
Medical
Care
Commission,
(continued)
Vidant
Health
Obligated
Group,
Revenue,
2015,
Refunding,
5%,
6/01/40
........
$
5,000,000
$
5,674,950
Wake
Forest
Baptist
Obligated
Group,
Revenue,
2019A,
5%,
12/01/32
..........
1,000,000
1,246,010
Wake
Forest
Baptist
Obligated
Group,
Revenue,
2019A,
5%,
12/01/33
..........
1,000,000
1,240,630
WakeMed
Obligated
Group,
Revenue,
2012
A,
Refunding,
5%,
10/01/38
........
5,000,000
5,310,200
North
Carolina
Municipal
Power
Agency
No.
1
,
Revenue
,
2015A
,
Refunding
,
5
%
,
1/01/32
.........................................................
4,200,000
4,950,960
North
Carolina
State
Education
Assistance
Authority
,
Revenue,
Senior
Lien,
2020A,
5%,
6/01/25
...............................
125,000
142,000
Revenue,
Senior
Lien,
2020A,
5%,
6/01/26
...............................
300,000
346,308
Revenue,
Senior
Lien,
2020A,
5%,
6/01/27
...............................
450,000
526,765
Revenue,
Senior
Lien,
2020A,
5%,
6/01/28
...............................
500,000
587,950
Revenue,
Senior
Lien,
2020A,
5%,
6/01/29
...............................
350,000
418,457
Revenue,
Senior
Lien,
2020A,
3.125%,
6/01/39
...........................
1,060,000
1,041,090
North
Carolina
State
University
at
Raleigh
,
Revenue,
2013
A,
Pre-Refunded,
5%,
10/01/33
...........................
5,595,000
6,406,331
Revenue,
2013
A,
Pre-Refunded,
5%,
10/01/42
...........................
8,980,000
10,282,190
Revenue,
2020
A,
Refunding,
2.375%,
10/01/44
...........................
5,000,000
5,048,400
North
Carolina
Turnpike
Authority
,
Revenue,
2011,
5%,
7/01/41
.........................................
5,000,000
5,159,000
Revenue,
2016A,
Refunding,
5%,
7/01/47
...............................
2,500,000
2,814,250
Revenue,
2018A,
Refunding,
4%,
1/01/36
...............................
9,875,000
11,585,646
Revenue,
2018A,
Refunding,
4%,
1/01/39
...............................
9,815,000
11,355,955
Revenue,
Senior
Lien,
2017,
Refunding,
AGMC
Insured,
5%,
1/01/31
...........
1,000,000
1,214,510
Revenue,
Senior
Lien,
2017,
Refunding,
AGMC
Insured,
5%,
1/01/39
...........
1,200,000
1,419,948
Revenue,
Senior
Lien,
2019,
AGMC
Insured,
5%,
1/01/49
...................
9,480,000
11,701,449
Raleigh
Durham
Airport
Authority
,
Revenue,
2015A,
Refunding,
5%,
5/01/27
...............................
350,000
412,818
Revenue,
2015A,
Refunding,
5%,
5/01/29
...............................
1,000,000
1,173,490
Revenue,
2015A,
Refunding,
5%,
5/01/30
...............................
550,000
643,241
Revenue,
2020
A,
Refunding,
5%,
5/01/35
...............................
2,250,000
2,863,643
State
of
North
Carolina
,
GO,
2016
A,
Refunding,
5%,
6/01/25
...................................
4,000,000
4,891,120
Revenue,
2011C,
Pre-Refunded,
5%,
5/01/29
.............................
10,000,000
10,319,000
Town
of
Cary
,
Combined
Utility
Systems,
Revenue,
2013,
Pre-Refunded,
5%,
12/01/42
........
10,000,000
11,051,800
Combined
Utility
Systems,
Revenue,
2017,
5%,
12/01/41
....................
1,710,000
2,086,713
Combined
Utility
Systems,
Revenue,
2017B,
Refunding,
4%,
12/01/42
..........
8,000,000
9,274,960
Town
of
Oak
Island
,
Enterprise
System
,
Revenue
,
2017
,
Refunding
,
AGMC
Insured
,
5
%
,
6/01/33
......................................................
1,000,000
1,229,930
University
of
North
Carolina
,
System
,
Revenue
,
2008A
,
Refunding
,
AGMC
Insured
,
5
%
,
10/01/33
........................................................
160,000
160,546
University
of
North
Carolina
at
Chapel
Hill
,
Hospitals
at
Chapel
Hill
,
Revenue
,
2016
,
5
%
,
2/01/46
......................................................
4,265,000
4,939,680
University
of
North
Carolina
at
Charlotte
(The)
,
Revenue,
2012A,
Pre-Refunded,
5%,
4/01/37
.............................
12,995,000
13,972,354
Revenue,
2012A,
Pre-Refunded,
5%,
4/01/41
.............................
18,000,000
19,353,780
Revenue,
2014,
5%,
4/01/43
.........................................
5,000,000
5,560,200
Revenue,
2015,
Refunding,
5%,
4/01/45
.................................
9,450,000
10,786,419
Revenue,
2017,
5%,
10/01/47
........................................
10,000,000
12,073,600
Revenue,
2017A,
Refunding,
4%,
10/01/40
..............................
2,250,000
2,570,153
Revenue,
2020A,
Refunding,
4%,
10/01/40
..............................
290,000
340,921
Revenue,
2020A,
Refunding,
4%,
10/01/49
..............................
2,800,000
3,237,304
University
of
North
Carolina
at
Greensboro
,
Revenue,
2014,
5%,
4/01/39
.........................................
3,500,000
3,916,185
Revenue,
2017,
Refunding,
4%,
4/01/35
.................................
1,205,000
1,398,294
Revenue,
2017,
Refunding,
4%,
4/01/36
.................................
1,000,000
1,155,990
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
North
Carolina
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
115
s
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
$
3,041,300
University
of
North
Carolina
at
Wilmington
,
Revenue
,
2015
,
Refunding
,
5
%
,
6/01/37
.
3,000,000
3,408,930
Western
Carolina
University
,
Revenue,
2020,
4%,
10/01/45
........................................
5,980,000
7,028,533
Revenue,
2020,
4%,
10/01/49
........................................
4,255,000
4,988,860
802,996,629
U.S.
Territories
0.8%
Puerto
Rico
0.8%
a
Puerto
Rico
Electric
Power
Authority
,
Revenue
,
XX-RSA-1
,
5.25
%
,
7/01/40
........
10,000,000
6,912,500
Total
Municipal
Bonds
(Cost
$761,235,842)
.....................................
809,909,129
a
a
a
a
Short
Term
Investments
5.0%
Municipal
Bonds
5.0%
North
Carolina
5.0%
b
Charlotte-Mecklenburg
Hospital
Authority
(The)
,
Atrium
Health
Obligated
Group,
Revenue,
2018
G,
SPA
JPMorgan
Chase
Bank
NA,
Daily
VRDN
and
Put,
0.02%,
1/15/48
.................................
8,590,000
8,590,000
Atrium
Health
Obligated
Group,
Revenue,
2018
H,
SPA
JPMorgan
Chase
Bank
NA,
Daily
VRDN
and
Put,
0.02%,
1/15/48
.................................
900,000
900,000
b
North
Carolina
Medical
Care
Commission
,
Moses
H
Cone
Memorial
Hospital
Obligated
Group
,
Revenue
,
2001B
,
SPA
Bank
of
Montreal
,
Daily
VRDN
and
Put
,
0.03
%
,
10/01/35
........................................................
29,775,000
29,775,000
b
Raleigh
Durham
Airport
Authority
,
Revenue
,
2008C
,
Refunding
,
LOC
TD
Bank
NA
,
Daily
VRDN
and
Put
,
0.05
%
,
5/01/36
...................................
3,675,000
3,675,000
42,940,000
Total
Municipal
Bonds
(Cost
$42,940,000)
......................................
42,940,000
Total
Short
Term
Investments
(Cost
$42,940,000
)
................................
42,940,000
a
Total
Investments
(Cost
$804,175,842)
98.6%
...................................
$852,849,129
Other
Assets,
less
Liabilities
1.4%
.............................................
12,770,322
Net
Assets
100.0%
...........................................................
$865,619,451
See
Abbreviations
on
page
159
.
a
See
Note
7
regarding
defaulted
securities.
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
Virginia
Tax-Free
Income
Fund
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
116
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
Year
Ended
February
28,
2019
b
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
..........................................
$11.42
$10.92
$10.87
Income
from
investment
operations
c
:
Net
investment
income
d
..................................................
0.12
0.28
0.15
Net
realized
and
unrealized
gains
(losses)
....................................
(0.18)
0.52
0.05
Total
from
investment
operations
.............................................
(0.06)
0.80
0.20
Less
distributions
from:
Net
investment
income
...................................................
(0.12)
(0.30)
(0.15)
Net
asset
value,
end
of
period
...............................................
$11.24
$11.42
$10.92
Total
return
e
............................................................
(0.52)%
7.40%
1.90%
Ratios
to
average
net
assets
f
Expenses
g
.............................................................
0.84%
0.84%
0.84%
Net
investment
income
....................................................
2.10%
2.54%
3.01%
Supplemental
data
Net
assets,
end
of
period
(000’s)
.............................................
$95,859
$77,058
$39,565
Portfolio
turnover
rate
.....................................................
13.23%
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
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
117
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
2019
2018
2017
2016
a
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$11.42
$10.91
$10.91
$11.31
$11.54
$11.65
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.13
0.30
0.34
0.35
0.40
0.42
Net
realized
and
unrealized
gains
(losses)
(0.18)
0.52
—
d
(0.39)
(0.23)
(0.11)
Total
from
investment
operations
........
(0.05)
0.82
0.34
(0.04)
0.17
0.31
Less
distributions
from:
Net
investment
income
..............
(0.13)
(0.31)
(0.34)
(0.36)
(0.40)
(0.42)
Net
asset
value,
end
of
period
..........
$11.24
$11.42
$10.91
$10.91
$11.31
$11.54
Total
return
e
.......................
(0.44)%
7.66%
3.22%
(0.34)%
1.51%
2.72%
Ratios
to
average
net
assets
f
Expenses
.........................
0.69%
g
0.69%
g
0.69%
g
0.68%
h
0.65%
0.65%
Net
investment
income
...............
2.27%
2.69%
3.16%
3.15%
3.46%
3.65%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$372,749
$398,547
$402,739
$454,423
$509,170
$540,857
Portfolio
turnover
rate
................
13.23%
14.44%
9.60%
9.87%
17.44%
5.30%
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,
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
Virginia
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
118
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
2019
2018
2017
2016
a
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$11.62
$11.10
$11.09
$11.49
$11.72
$11.82
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.10
0.24
0.29
0.30
0.34
0.36
Net
realized
and
unrealized
gains
(losses)
(0.18)
0.54
—
d
(0.40)
(0.23)
(0.11)
Total
from
investment
operations
........
(0.08)
0.78
0.29
(0.10)
0.11
0.25
Less
distributions
from:
Net
investment
income
..............
(0.10)
(0.26)
(0.28)
(0.30)
(0.34)
(0.35)
Net
asset
value,
end
of
period
..........
$11.44
$11.62
$11.10
$11.09
$11.49
$11.72
Total
return
e
.......................
(0.71)%
7.07%
2.68%
(0.89)%
0.92%
2.20%
Ratios
to
average
net
assets
f
Expenses
.........................
1.24%
g
1.24%
g
1.24%
g
1.23%
h
1.20%
1.20%
Net
investment
income
...............
1.70%
2.14%
2.61%
2.60%
2.91%
3.10%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$41,898
$52,357
$62,041
$90,666
$107,936
$110,753
Portfolio
turnover
rate
................
13.23%
14.44%
9.60%
9.87%
17.44%
5.30%
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,
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
Virginia
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
119
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
Year
Ended
February
28,
2018
b
2020
a
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
..............................
$11.43
$10.92
$10.91
$11.25
Income
from
investment
operations
c
:
Net
investment
income
d
......................................
0.14
0.32
0.36
0.22
Net
realized
and
unrealized
gains
(losses)
........................
(0.18)
0.52
0.01
(0.35)
Less
distributions
from:
Net
investment
income
.......................................
(0.14)
(0.33)
(0.36)
(0.21)
Net
asset
value,
end
of
period
...................................
$11.25
$11.43
$10.92
$10.91
Total
return
e
................................................
(0.37)%
7.80%
3.44%
(1.14)%
Ratios
to
average
net
assets
f
Expenses
before
waiver
and
payments
by
affiliates
...................
0.57%
0.56%
0.57%
0.57%
Expenses
net
of
waiver
and
payments
by
affiliates
....................
0.55%
g
0.55%
g
0.55%
g
0.54%
Net
investment
income
........................................
2.40%
2.83%
3.30%
3.29%
Supplemental
data
Net
assets,
end
of
period
(000’s)
.................................
$5,891
$5,829
$4,947
$5,028
Portfolio
turnover
rate
.........................................
13.23%
14.44%
9.60%
9.87%
a
For
the
period
August
1,
2017
(effective
date)
to
February
28,
2018.
b
For
the
year
ended
February
29.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Virginia
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
120
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
2019
2018
2017
2016
a
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$11.43
$10.92
$10.92
$11.31
$11.54
$11.65
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.13
0.31
0.35
0.36
0.41
0.43
Net
realized
and
unrealized
gains
(losses)
(0.18)
0.53
0.01
(0.38)
(0.22)
(0.11)
Total
from
investment
operations
........
(0.05)
0.84
0.36
(0.02)
0.19
0.32
Less
distributions
from:
Net
investment
income
..............
(0.13)
(0.33)
(0.36)
(0.37)
(0.42)
(0.43)
Net
asset
value,
end
of
period
..........
$11.25
$11.43
$10.92
$10.92
$11.31
$11.54
Total
return
d
.......................
(0.39)%
7.76%
3.32%
(0.15)%
1.60%
2.82%
Ratios
to
average
net
assets
e
Expenses
.........................
0.59%
f
0.59%
f
0.59%
f
0.58%
g
0.55%
0.55%
Net
investment
income
...............
2.36%
2.79%
3.26%
3.25%
3.56%
3.75%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$115,472
$109,844
$84,880
$85,293
$87,359
$52,952
Portfolio
turnover
rate
................
13.23%
14.44%
9.60%
9.87%
17.44%
5.30%
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
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
g
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited),
August
31,
2020
Franklin
Virginia
Tax-Free
Income
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
121
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
92.1%
Virginia
85.7%
Alexandria
Industrial
Development
Authority
,
Goodwin
House,
Inc.
Obligated
Group
,
Revenue
,
2015
,
Refunding
,
5
%
,
10/01/45
................................
$
975,000
$
1,039,233
Arlington
County
Industrial
Development
Authority
,
Virginia
Hospital
Center
Arlington
Health
System
,
Revenue
,
2020
,
Refunding
,
4
%
,
7/01/45
....................
2,000,000
2,302,020
Chesapeake
Hospital
Authority
,
Chesapeake
Hospital
Authority
Obligated
Group,
Revenue,
2019,
Refunding,
4%,
7/01/39
........................................................
1,000,000
1,139,350
Chesapeake
Hospital
Authority
Obligated
Group,
Revenue,
2019,
Refunding,
4%,
7/01/43
........................................................
4,000,000
4,508,120
Chesterfield
County
Economic
Development
Authority
,
Bon
Secours
Health
System,
Inc.
Obligated
Group,
Revenue,
2008
C-2,
Pre-
Refunded,
AGMC
Insured,
5%,
11/01/42
...............................
8,000,000
8,060,560
Bon
Secours
Health
System,
Inc.
Obligated
Group,
Revenue,
2008C-1,
Pre-
Refunded,
AGMC
Insured,
5%,
11/01/42
...............................
2,250,000
2,267,032
City
of
Bristol
,
Revenue
,
2001
,
Refunding
,
AGMC
Insured
,
ETM,
5
%
,
7/15/21
......
270,000
281,227
City
of
Hopewell
,
Sewer
System
,
Revenue
,
2011
A
,
Refunding
,
5
%
,
7/15/42
.......
4,850,000
5,012,524
City
of
Norfolk
,
GO,
2012
C,
Pre-Refunded,
5%,
10/01/42
...............................
7,825,000
8,045,587
GO,
2013A,
Pre-Refunded,
5%,
8/01/32
.................................
5,845,000
6,657,864
GO,
2016A,
Pre-Refunded,
5%,
10/01/41
................................
1,040,000
1,334,299
GO,
2016A,
Pre-Refunded,
5%,
10/01/46
................................
2,500,000
3,207,450
GO,
2019,
Pre-Refunded,
5%,
8/01/44
..................................
3,995,000
5,432,561
Water,
Revenue,
2018,
5%,
11/01/43
...................................
6,920,000
8,561,701
Water,
Revenue,
2018,
5%,
11/01/47
...................................
6,925,000
8,527,583
City
of
Portsmouth
,
GO,
2012A,
Pre-Refunded,
5%,
7/15/41
.................................
5,990,000
6,522,691
GO,
2012A,
Refunding,
5%,
7/15/41
....................................
4,010,000
4,329,637
City
of
Richmond
,
Public
Utility,
Revenue,
2013A,
Pre-Refunded,
5%,
1/15/43
..................
10,000,000
11,134,100
Public
Utility,
Revenue,
2016
A,
Refunding,
5%,
1/15/33
.....................
10,000,000
12,326,100
City
of
Suffolk
,
GO,
2011,
Pre-Refunded,
5%,
2/01/41
..................................
10,000,000
10,199,447
GO,
2012,
Pre-Refunded,
5%,
6/01/42
..................................
10,000,000
10,362,000
County
of
Arlington
,
GO
,
2019
,
4
%
,
6/15/34
................................
2,000,000
2,465,440
County
of
Fairfax
,
GO,
2018A,
4%,
10/01/34
...........................................
3,000,000
3,625,380
GO,
2020A,
Refunding,
5%,
10/01/34
...................................
5,000,000
6,745,050
GO,
2020A,
Refunding,
5%,
10/01/35
...................................
3,000,000
4,028,250
GO,
2020A,
Refunding,
5%,
10/01/36
...................................
5,030,000
6,724,054
Sewer,
Revenue,
2017,
5%,
7/15/37
....................................
2,760,000
3,465,621
County
of
Smyth
,
GO
,
2011
A
,
Pre-Refunded
,
5
%
,
11/01/31
....................
4,145,000
4,375,172
Fairfax
County
Economic
Development
Authority
,
Revenue,
2017,
5%,
4/01/42
.........................................
5,085,000
6,165,766
Goodwin
House,
Inc.
Obligated
Group,
Revenue,
2016
A,
Refunding,
5%,
10/01/36
4,865,000
5,269,184
Goodwin
House,
Inc.
Obligated
Group,
Revenue,
2016
A,
Refunding,
4%,
10/01/42
1,500,000
1,536,585
Fairfax
County
Industrial
Development
Authority
,
Inova
Health
System
Obligated
Group,
Revenue,
2014
A,
5%,
5/15/44
..........
2,500,000
2,811,900
Inova
Health
System
Obligated
Group,
Revenue,
2018
A,
Refunding,
4%,
5/15/48
.
5,000,000
5,646,850
Fairfax
County
Water
Authority
,
Revenue,
2017,
Refunding,
5%,
4/01/43
.................................
3,510,000
4,309,789
Revenue,
2017,
Refunding,
5%,
4/01/47
.................................
5,000,000
6,097,850
Farmville
Industrial
Development
Authority
,
Longwood
Housing
Foundation
LLC
,
Revenue
,
2018
A
,
Refunding
,
5
%
,
1/01/48
...............................
5,000,000
5,214,150
Hampton
Roads
Sanitation
District
,
Revenue,
2016
A,
Pre-Refunded,
5%,
8/01/31
............................
6,200,000
7,911,014
Revenue,
2016
A,
Pre-Refunded,
5%,
8/01/33
............................
5,115,000
6,526,586
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Virginia
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Semiannual
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)
Virginia
(continued)
Hampton
Roads
Sanitation
District,
(continued)
Revenue,
2016
A,
Pre-Refunded,
5%,
8/01/43
............................
$
11,840,000
$
15,107,485
Hampton
Roads
Transportation
Accountability
Commission
,
Revenue,
Senior
Lien
,
2018
A
,
5
%
,
7/01/48
................................................
20,000,000
24,563,800
Henrico
County
Economic
Development
Authority
,
Bon
Secours
Health
System,
Inc.
Obligated
Group
,
Revenue
,
2013C
,
Pre-Refunded
,
5
%
,
11/01/30
..............
7,000,000
7,701,050
Lexington
Industrial
Development
Authority
,
Lexington
Retirement
Community
Obligated
Group,
Revenue,
2017A,
5%,
1/01/42
.
2,000,000
2,064,020
Washington
&
Lee
University
(The),
Revenue,
2013,
Pre-Refunded,
5%,
1/01/43
..
10,000,000
10,640,200
Washington
&
Lee
University
(The),
Revenue,
2018
A,
Refunding,
5%,
1/01/35
....
1,105,000
1,394,543
Washington
&
Lee
University
(The),
Revenue,
2018
A,
Refunding,
5%,
1/01/48
....
1,500,000
1,852,215
Loudoun
County
Sanitation
Authority
,
Revenue
,
2015
A
,
Refunding
,
5
%
,
1/01/29
....
4,770,000
5,710,930
Lynchburg
Economic
Development
Authority
,
Centra
Health
Obligated
Group
,
Revenue
,
2017
A
,
Refunding
,
5
%
,
1/01/47
.......................................
4,500,000
5,114,520
Montgomery
County
Economic
Development
Authority
,
Virginia
Tech
Foundation,
Inc.,
Revenue,
2019A,
4%,
6/01/36
.................
1,200,000
1,437,480
Virginia
Tech
Foundation,
Inc.,
Revenue,
2019A,
4%,
6/01/37
.................
500,000
596,820
Virginia
Tech
Foundation,
Inc.,
Revenue,
2019A,
4%,
6/01/38
.................
1,750,000
2,082,307
Norfolk
Airport
Authority
,
Revenue,
2019,
5%,
7/01/37
.........................................
1,000,000
1,188,190
Revenue,
2019,
5%,
7/01/39
.........................................
800,000
945,000
Revenue,
2019,
5%,
7/01/43
.........................................
2,925,000
3,444,012
Northern
Virginia
Transportation
Authority
,
Special
Tax
,
2014
,
5
%
,
6/01/33
.........
3,000,000
3,492,390
Prince
Edward
County
Industrial
Development
Authority
,
President
and
Trustees
of
Hampden-Sydney
College
,
Revenue
,
2018
,
5
%
,
9/01/48
....................
2,050,000
2,396,716
Prince
William
County
Industrial
Development
Authority
,
George
Mason
University
Foundation
Prince
William
Life
Sciences
LAB
LLC,
Revenue,
2011AA,
Pre-Refunded,
5.125%,
9/01/41
.......................
3,200,000
3,354,624
Novant
Health
Obligated
Group,
Revenue,
2013B,
Refunding,
5%,
11/01/46
......
10,000,000
10,599,000
Riverside
Regional
Jail
Authority
,
Revenue
,
2015
,
Refunding
,
5
%
,
7/01/31
.........
6,215,000
7,498,646
Roanoke
Economic
Development
Authority
,
Carilion
Clinic
Obligated
Group
,
Revenue
,
2020
A
,
Refunding
,
4
%
,
7/01/51
.......................................
10,055,000
11,476,375
Salem
Economic
Development
Authority
,
Roanoke
College
,
Revenue
,
2020
,
Refunding
,
5
%
,
4/01/49
......................................................
925,000
1,025,788
Stafford
County
&
Staunton
Industrial
Development
Authority
,
Revenue
,
2007E
,
Refunding
,
AGMC
Insured
,
5
%
,
8/01/37
.................................
960,000
960,346
University
of
Virginia
,
Revenue,
2013A,
Pre-Refunded,
5%,
6/01/43
.............................
15,000,000
16,967,100
Revenue,
2017
A,
Refunding,
5%,
4/01/47
...............................
9,630,000
11,751,200
Upper
Occoquan
Sewage
Authority
,
Revenue
,
2016
B
,
Refunding
,
4
%
,
7/01/35
.....
6,165,000
7,090,182
Virginia
Beach
Development
Authority
,
Westminster-Canterbury
on
Chesapeake
Bay
Obligated
Group,
Revenue,
2018,
Refunding,
5%,
9/01/40
............................................
1,750,000
1,936,620
Westminster-Canterbury
on
Chesapeake
Bay
Obligated
Group,
Revenue,
2018,
Refunding,
5%,
9/01/44
............................................
2,215,000
2,438,161
Virginia
College
Building
Authority
,
Revenue,
2016
A,
Refunding,
5%,
9/01/27
...............................
4,000,000
5,036,800
Revenue,
2016A,
Refunding,
4%,
2/01/30
...............................
7,000,000
8,122,380
Revenue,
2019A,
4%,
2/01/34
........................................
5,000,000
6,042,800
Revenue,
2020
A,
4%,
2/01/38
........................................
5,000,000
6,056,950
Washington
&
Lee
University
(The),
Revenue,
2015A,
Refunding,
5%,
1/01/40
....
5,000,000
5,672,700
Virginia
Commonwealth
Transportation
Board
,
Revenue,
2016,
5%,
9/15/30
.........................................
2,260,000
2,818,559
Revenue,
2016,
5%,
9/15/31
.........................................
4,000,000
4,972,600
Revenue,
2019,
4%,
5/15/40
.........................................
13,060,000
15,500,522
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Virginia
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
123
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Virginia
(continued)
Virginia
Housing
Development
Authority
,
Revenue
,
2018
D
,
3.8
%
,
10/01/43
........
$
3,805,000
$
4,157,001
Virginia
Public
Building
Authority
,
Revenue
,
2019A
,
4
%
,
8/01/35
................
1,250,000
1,537,663
Virginia
Public
School
Authority
,
Revenue,
2014
B,
Refunding,
5%,
8/01/24
...............................
10,000,000
11,852,400
Revenue,
2018
B,
5%,
8/01/30
........................................
5,280,000
6,916,747
Revenue,
2019A,
5%,
8/01/30
........................................
3,535,000
4,799,682
Revenue,
2019A,
5%,
8/01/31
........................................
2,625,000
3,529,365
County
of
Prince
William,
Revenue,
2018,
4%,
3/01/33
......................
5,795,000
6,919,809
County
of
Prince
William,
Revenue,
2019
A,
3%,
10/01/38
...................
5,455,000
6,072,615
Virginia
Resources
Authority
,
Revenue,
2008,
Refunding,
5%,
11/01/38
................................
135,000
135,442
Revenue,
2011B,
Pre-Refunded,
5%,
11/01/41
............................
9,410,000
9,921,151
Revenue,
2015
A,
5%,
11/01/38
.......................................
5,165,000
6,235,498
Revenue,
2015B,
Refunding,
5%,
11/01/45
...............................
5,255,000
6,282,510
Revenue,
2018C,
Refunding,
5%,
11/01/48
..............................
7,655,000
9,677,068
Revenue,
2020
B,
Refunding,
4%,
11/01/32
..............................
1,470,000
1,879,954
Virginia
Small
Business
Financing
Authority
,
95
Express
Lanes
LLC,
Revenue,
Senior
Lien,
2012,
5%,
1/01/40
.............
2,400,000
2,489,520
95
Express
Lanes
LLC,
Revenue,
Senior
Lien,
2019,
5%,
1/01/44
.............
2,500,000
2,588,725
Bon
Secours
Mercy
Health,
Inc.,
Revenue,
2020A,
Refunding,
4%,
12/01/49
.....
5,000,000
5,685,350
I-66
Express
Mobility
Partners
LLC,
Revenue,
Senior
Lien,
2017,
5%,
12/31/47
...
6,600,000
7,466,250
Sentara
Healthcare
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
11/01/38
...
4,000,000
4,639,400
Sentara
Healthcare
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
11/01/39
...
8,730,000
10,095,634
Winchester
Economic
Development
Authority
,
Valley
Health
Obligated
Group
,
Revenue
,
2015
,
Refunding
,
5
%
,
1/01/44
.................................
5,000,000
5,711,150
541,815,692
U.S.
Territories
6.4%
District
of
Columbia
5.3%
Metropolitan
Washington
Airports
Authority
,
Revenue,
2010-A,
5%,
10/01/35
.......................................
12,000,000
12,046,680
Revenue,
2019A,
Refunding,
5%,
10/01/49
..............................
5,000,000
6,081,550
Washington
Metropolitan
Area
Transit
Authority
,
Revenue,
2017B,
5%,
7/01/42
........................................
5,000,000
6,072,750
Revenue,
2020A,
5%,
7/15/45
........................................
7,000,000
8,975,260
33,176,240
Puerto
Rico
1.1%
a
Puerto
Rico
Electric
Power
Authority
,
Revenue,
WW-RSA-1,
5.5%,
7/01/38
...................................
4,550,000
3,156,562
Revenue,
XX-RSA-1,
5.25%,
7/01/40
...................................
5,110,000
3,532,288
6,688,850
Total
U.S.
Territories
....................................................................
39,865,090
Total
Municipal
Bonds
(Cost
$545,884,203)
.....................................
581,680,782
a
a
a
a
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Virginia
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
124
s
Short
Term
Investments
6.8%
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
6.8%
Virginia
6.8%
b
Albemarle
County
Economic
Development
Authority
,
Sentara
Healthcare
Obligated
Group
,
Revenue
,
2018
B
,
Refunding
,
SPA
TD
Bank
NA
,
Daily
VRDN
and
Put
,
0.03
%
,
10/01/48
........................................................
$
22,555,000
$
22,555,000
b
Virginia
College
Building
Authority
,
University
of
Richmond
,
Revenue
,
2006
,
SPA
Wells
Fargo
Bank
NA
,
Daily
VRDN
and
Put
,
0.04
%
,
11/01/36
......................
20,120,000
20,120,000
42,675,000
Total
Municipal
Bonds
(Cost
$42,675,000)
......................................
42,675,000
Total
Short
Term
Investments
(Cost
$42,675,000
)
................................
42,675,000
a
Total
Investments
(Cost
$588,559,203)
98.9%
...................................
$624,355,782
Other
Assets,
less
Liabilities
1.1%
.............................................
7,513,809
Net
Assets
100.0%
...........................................................
$631,869,591
See
abbreviations
on
page
159
.
a
See
Note
7
regarding
defaulted
securities.
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
Statements
Statements
of
Assets
and
Liabilities
August
31,
2020
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
125
Franklin
Alabama
Tax-
Free
Income
Fund
Franklin
Florida
Tax-Free
Income
Fund
Franklin
Georgia
Tax-
Free
Income
Fund
Assets:
Investments
in
securities:
Cost
-
Unaffiliated
issuers
.................................
$223,774,618
$517,689,650
$446,805,749
Value
-
Unaffiliated
issuers
................................
$241,514,109
$553,111,189
$472,812,791
Cash
..................................................
1,685,512
3,169,137
12,479
Receivables:
Capital
shares
sold
......................................
219,632
538,765
491,762
Interest
...............................................
2,770,903
6,381,797
4,581,249
Other
assets
............................................
139
319
273
Total
assets
........................................
246,190,295
563,201,207
477,898,554
Liabilities:
Payables:
Investment
securities
purchased
............................
—
15,701,531
3,585,220
Capital
shares
redeemed
.................................
364,963
1,248,290
628,491
Management
fees
.......................................
120,253
240,685
212,031
Distribution
fees
........................................
34,731
67,937
67,287
Transfer
agent
fees
......................................
35,140
82,379
76,158
Distributions
to
shareholders
...............................
55,991
229,900
103,332
Accrued
expenses
and
other
liabilities
.........................
36,698
57,122
52,508
Total
liabilities
.......................................
647,776
17,627,844
4,725,027
Net
assets,
at
value
...............................
$245,542,519
$545,573,363
$473,173,527
Net
assets
consist
of:
Paid-in
capital
...........................................
$245,400,768
$578,245,458
$472,104,042
Total
distributable
earnings
(losses)
...........................
141,751
(32,672,095)
1,069,485
Net
assets,
at
value
...............................
$245,542,519
$545,573,363
$473,173,527
Franklin
Tax-Free
Trust
Financial
Statements
Statements
of
Assets
and
Liabilities
(continued)
August
31,
2020
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
126
Franklin
Alabama
Tax-
Free
Income
Fund
Franklin
Florida
Tax-Free
Income
Fund
Franklin
Georgia
Tax-
Free
Income
Fund
Class
A:
Net
assets,
at
value
.....................................
$23,780,322
$68,996,647
$69,123,562
Shares
outstanding
......................................
2,106,846
6,471,788
5,770,496
Net
asset
value
per
share
a
................................
$11.29
$10.66
$11.98
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
96.25%,
96.25%
and
96.25%,
respectively)
..........................
$11.73
$11.08
$12.45
Class
A1:
Net
assets,
at
value
.....................................
$180,276,969
$409,863,457
$284,059,620
Shares
outstanding
......................................
15,989,800
38,480,904
23,713,532
Net
asset
value
per
share
a
................................
$11.27
$10.65
$11.98
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
96.25%,
96.25%
and
96.25%,
respectively)
..........................
$11.71
$11.06
$12.45
Class
C:
Net
assets,
at
value
.....................................
$25,628,075
$30,586,982
$50,890,239
Shares
outstanding
......................................
2,242,745
2,809,110
4,183,680
Net
asset
value
and
maximum
offering
price
per
share
a
...........
$11.43
$10.89
$12.16
Class
R6:
Net
assets,
at
value
.....................................
$1,892,567
$4,391,278
$5,021,938
Shares
outstanding
......................................
167,846
411,171
419,131
Net
asset
value
and
maximum
offering
price
per
share
...........
$11.28
$10.68
$11.98
Advisor
Class:
Net
assets,
at
value
.....................................
$13,964,586
$31,734,999
$64,078,168
Shares
outstanding
......................................
1,238,426
2,972,425
5,346,990
Net
asset
value
and
maximum
offering
price
per
share
...........
$11.28
$10.68
$11.98
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)
August
31,
2020
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
127
Franklin
Kentucky
Tax-
Free
Income
Fund
Franklin
Louisiana
Tax-
Free
Income
Fund
Franklin
Maryland
Tax-
Free
Income
Fund
Assets:
Investments
in
securities:
Cost
-
Unaffiliated
issuers
.................................
$133,736,198
$355,075,911
$392,272,638
Value
-
Unaffiliated
issuers
................................
$142,021,614
$377,650,742
$415,180,756
Cash
..................................................
716,930
18,242,751
1,594,799
Receivables:
Investment
securities
sold
.................................
—
688,750
878,156
Capital
shares
sold
......................................
300,916
1,791
235,182
Interest
...............................................
1,714,746
4,536,559
4,070,197
Other
assets
............................................
85
230
243
Total
assets
........................................
144,754,291
401,120,823
421,959,333
Liabilities:
Payables:
Investment
securities
purchased
............................
—
13,279,890
—
Capital
shares
redeemed
.................................
553,348
328,313
648,071
Management
fees
.......................................
75,488
176,848
190,359
Distribution
fees
........................................
12,478
51,408
58,155
Transfer
agent
fees
......................................
19,656
57,166
71,832
Distributions
to
shareholders
...............................
11,521
36,183
109,282
Accrued
expenses
and
other
liabilities
.........................
32,778
50,916
45,509
Total
liabilities
.......................................
705,269
13,980,724
1,123,208
Net
assets,
at
value
...............................
$144,049,022
$387,140,099
$420,836,125
Net
assets
consist
of:
Paid-in
capital
...........................................
$146,236,534
$392,681,752
$442,416,735
Total
distributable
earnings
(losses)
...........................
(2,187,512)
(5,541,653)
(21,580,610)
Net
assets,
at
value
...............................
$144,049,022
$387,140,099
$420,836,125
Franklin
Tax-Free
Trust
Financial
Statements
Statements
of
Assets
and
Liabilities
(continued)
August
31,
2020
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
128
Franklin
Kentucky
Tax-
Free
Income
Fund
Franklin
Louisiana
Tax-
Free
Income
Fund
Franklin
Maryland
Tax-
Free
Income
Fund
Class
A:
Net
assets,
at
value
.....................................
$10,686,210
$53,292,336
$69,854,982
Shares
outstanding
......................................
968,327
4,718,001
6,319,757
Net
asset
value
per
share
a
................................
$11.04
$11.30
$11.05
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
96.25%,
96.25%
and
96.25%,
respectively)
..........................
$11.47
$11.74
$11.48
Class
A1:
Net
assets,
at
value
.....................................
$118,896,409
$265,836,261
$254,184,631
Shares
outstanding
......................................
10,783,798
23,547,699
22,990,072
Net
asset
value
per
share
a
................................
$11.03
$11.29
$11.06
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
96.25%,
96.25%
and
96.25%,
respectively)
..........................
$11.46
$11.73
$11.49
Class
C:
Net
assets,
at
value
.....................................
—
$31,663,502
$38,778,009
Shares
outstanding
......................................
—
2,758,719
3,436,026
Net
asset
value
and
maximum
offering
price
per
share
a
...........
—
$11.48
$11.29
Class
R6:
Net
assets,
at
value
.....................................
$2,068,311
$6,044,461
$4,331,966
Shares
outstanding
......................................
187,502
535,283
391,208
Net
asset
value
and
maximum
offering
price
per
share
...........
$11.03
$11.29
$11.07
Advisor
Class:
Net
assets,
at
value
.....................................
$12,398,092
$30,303,539
$53,686,537
Shares
outstanding
......................................
1,124,014
2,683,035
4,850,098
Net
asset
value
and
maximum
offering
price
per
share
...........
$11.03
$11.29
$11.07
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)
August
31,
2020
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
129
Franklin
Missouri
Tax-
Free
Income
Fund
Franklin
North
Carolina
Tax-
Free
Income
Fund
Franklin
Virginia
Tax-
Free
Income
Fund
Assets:
Investments
in
securities:
Cost
-
Unaffiliated
issuers
.................................
$932,472,912
$804,175,842
$588,559,203
Value
-
Unaffiliated
issuers
................................
$993,513,020
$852,849,129
$624,355,782
Cash
..................................................
4,831,473
4,863,013
1,540,435
Receivables:
Investment
securities
sold
.................................
2,115,225
—
1,442,931
Capital
shares
sold
......................................
867,038
874,178
201,052
Interest
...............................................
12,888,680
9,510,368
6,058,704
Other
assets
............................................
586
495
363
Total
assets
........................................
1,014,216,022
868,097,183
633,599,267
Liabilities:
Payables:
Investment
securities
purchased
............................
5,969,350
—
—
Capital
shares
redeemed
.................................
1,227,615
1,655,746
1,106,998
Management
fees
.......................................
425,391
368,205
273,784
Distribution
fees
........................................
135,112
112,324
74,938
Transfer
agent
fees
......................................
134,056
111,281
89,601
Distributions
to
shareholders
...............................
160,625
149,076
119,961
Accrued
expenses
and
other
liabilities
.........................
90,281
81,100
64,394
Total
liabilities
.......................................
8,142,430
2,477,732
1,729,676
Net
assets,
at
value
...............................
$1,006,073,592
$865,619,451
$631,869,591
Net
assets
consist
of:
Paid-in
capital
...........................................
$1,026,180,005
$912,549,838
$654,316,752
Total
distributable
earnings
(losses)
...........................
(20,106,413)
(46,930,387)
(22,447,161)
Net
assets,
at
value
...............................
$1,006,073,592
$865,619,451
$631,869,591
Franklin
Tax-Free
Trust
Financial
Statements
Statements
of
Assets
and
Liabilities
(continued)
August
31,
2020
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
130
Franklin
Missouri
Tax-
Free
Income
Fund
Franklin
North
Carolina
Tax-
Free
Income
Fund
Franklin
Virginia
Tax-
Free
Income
Fund
Class
A:
Net
assets,
at
value
.....................................
$146,532,127
$127,743,626
$95,858,872
Shares
outstanding
......................................
12,307,882
10,886,774
8,526,836
Net
asset
value
per
share
a
................................
$11.91
$11.73
$11.24
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
96.25%,
96.25%
and
96.25%,
respectively)
..........................
$12.37
$12.19
$11.68
Class
A1:
Net
assets,
at
value
.....................................
$670,386,153
$540,795,796
$372,749,231
Shares
outstanding
......................................
56,345,724
46,104,325
33,163,611
Net
asset
value
per
share
a
................................
$11.90
$11.73
$11.24
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
96.25%,
96.25%
and
96.25%,
respectively)
..........................
$12.36
$12.19
$11.68
Class
C:
Net
assets,
at
value
.....................................
$83,798,630
$70,204,198
$41,898,138
Shares
outstanding
......................................
6,970,242
5,886,647
3,663,686
Net
asset
value
and
maximum
offering
price
per
share
a
...........
$12.02
$11.93
$11.44
Class
R6:
Net
assets,
at
value
.....................................
$27,776,911
$12,665,562
$5,891,116
Shares
outstanding
......................................
2,332,313
1,080,192
523,776
Net
asset
value
and
maximum
offering
price
per
share
...........
$11.91
$11.73
$11.25
Advisor
Class:
Net
assets,
at
value
.....................................
$77,579,771
$114,210,269
$115,472,234
Shares
outstanding
......................................
6,515,876
9,735,671
10,264,060
Net
asset
value
and
maximum
offering
price
per
share
...........
$11.91
$11.73
$11.25
Franklin
Tax-Free
Trust
Financial
Statements
Statements
of
Operations
for
the
six
months
ended
August
31,
2020
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
131
Franklin
Alabama
Tax-
Free
Income
Fund
Franklin
Florida
Tax-Free
Income
Fund
Franklin
Georgia
Tax-
Free
Income
Fund
Investment
income:
Interest:
Unaffiliated
issuers
......................................
$4,404,565
$10,975,826
$8,166,305
Expenses:
Management
fees
(Note
3
a
)
.................................
675,382
1,354,299
1,187,729
Distribution
fees:
(Note
3c
)
Class
A
..............................................
23,945
75,088
74,990
Class
A1
.............................................
90,889
208,362
143,868
Class
C
..............................................
94,373
108,159
185,475
Transfer
agent
fees:
(Note
3e
)
Class
A
..............................................
5,929
19,873
21,663
Class
A1
.............................................
56,133
137,948
104,592
Class
C
..............................................
8,960
11,016
20,753
Class
R6
.............................................
363
930
1,112
Advisor
Class
..........................................
3,781
9,997
21,877
Custodian
fees
(Note
4
)
....................................
895
2,015
1,758
Reports
to
shareholders
....................................
8,323
14,515
13,949
Registration
and
filing
fees
..................................
9,181
16,428
9,979
Professional
fees
.........................................
25,121
36,810
28,400
Trustees'
fees
and
expenses
................................
744
1,735
1,430
Other
..................................................
11,498
19,209
18,118
Total
expenses
.......................................
1,015,517
2,016,384
1,835,693
Expense
reductions
(Note
4
)
.............................
(1,584)
(3,596)
(3,089)
Expenses
waived/paid
by
affiliates
(Not
e
3f)
..................
(109)
(353)
(403)
Net
expenses
.......................................
1,013,824
2,012,435
1,832,201
Net
investment
income
..............................
3,390,741
8,963,391
6,334,104
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
Unaffiliated
issuers
....................................
(175,722)
(1,040,521)
(2,396,027)
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
....................................
(2,384,318)
(8,594,148)
(6,484,249)
Net
realized
and
unrealized
gain
(loss)
..........................
(2,560,040)
(9,634,669)
(8,880,276)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
........
$830,701
$(671,278)
$(2,546,172)
Franklin
Tax-Free
Trust
Financial
Statements
Statements
of
Operations
(continued)
for
the
six
months
ended
August
31,
2020
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
132
Franklin
Kentucky
Tax-
Free
Income
Fund
Franklin
Louisiana
Tax-
Free
Income
Fund
Franklin
Maryland
Tax-
Free
Income
Fund
Investment
income:
Interest:
Unaffiliated
issuers
......................................
$2,618,617
$6,678,179
$7,345,381
Expenses:
Management
fees
(Note
3
a
)
.................................
429,689
991,994
1,066,775
Distribution
fees:
(Note
3c
)
Class
A
..............................................
12,265
58,434
77,736
Class
A1
.............................................
61,129
135,258
127,874
Transfer
agent
fees:
(Note
3e
)
Class
A
..............................................
3,537
15,726
23,841
Class
A1
.............................................
43,883
90,801
97,926
Class
R6
.............................................
642
1,359
868
Advisor
Class
..........................................
4,331
9,259
20,240
Custodian
fees
(Note
4
)
....................................
547
1,430
1,725
Reports
to
shareholders
....................................
6,965
11,461
11,840
Registration
and
filing
fees
..................................
5,307
7,450
9,913
Professional
fees
.........................................
24,971
28,428
31,362
Trustees'
fees
and
expenses
................................
458
1,175
1,291
Other
..................................................
10,360
16,606
15,731
Total
expenses
.......................................
604,084
1,494,819
1,640,181
Expense
reductions
(Note
4
)
.............................
(985)
(2,550)
(2,747)
Expenses
waived/paid
by
affiliates
(Not
e
3f)
..................
(338)
(557)
(294)
Net
expenses
.......................................
602,761
1,491,712
1,637,140
Net
investment
income
..............................
2,015,856
5,186,467
5,708,241
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
Unaffiliated
issuers
....................................
(735,060)
(884,532)
(2,693,863)
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
....................................
(2,088,383)
(9,080,598)
(8,739,501)
Net
realized
and
unrealized
gain
(loss)
..........................
(2,823,443)
(9,965,130)
(11,433,364)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
........
$(807,587)
$(4,778,663)
$(5,725,123)
Franklin
Tax-Free
Trust
Financial
Statements
Statements
of
Operations
(continued)
for
the
six
months
ended
August
31,
2020
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
133
Franklin
Missouri
Tax-
Free
Income
Fund
Franklin
North
Carolina
Tax-
Free
Income
Fund
Franklin
Virginia
Tax-
Free
Income
Fund
Investment
income:
Interest:
Unaffiliated
issuers
......................................
$16,393,555
$13,508,013
$9,149,708
Expenses:
Management
fees
(Note
3
a
)
.................................
2,396,375
2,056,727
1,522,272
Distribution
fees:
(Note
3c
)
Class
A
..............................................
161,109
135,876
100,282
Class
A1
.............................................
338,538
272,864
189,166
Class
C
..............................................
314,914
265,222
154,681
Transfer
agent
fees:
(Note
3e
)
Class
A
..............................................
41,158
34,387
28,335
Class
A1
.............................................
215,729
172,283
133,337
Class
C
..............................................
30,833
25,729
16,752
Class
R6
.............................................
4,551
2,420
1,291
Advisor
Class
..........................................
24,705
33,914
37,763
Custodian
fees
(Note
4
)
....................................
3,807
3,121
2,442
Reports
to
shareholders
....................................
26,962
22,203
16,269
Registration
and
filing
fees
..................................
10,897
10,961
16,051
Professional
fees
.........................................
47,290
40,516
33,349
Trustees'
fees
and
expenses
................................
3,051
2,600
1,908
Other
..................................................
30,597
25,801
20,150
Total
expenses
.......................................
3,650,516
3,104,624
2,274,048
Expense
reductions
(Note
4
)
.............................
(6,631)
(5,600)
(4,112)
Expenses
waived/paid
by
affiliates
(Not
e
3f)
..................
(675)
(687)
(437)
Net
expenses
.......................................
3,643,210
3,098,337
2,269,499
Net
investment
income
..............................
12,750,345
10,409,676
6,880,209
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
Unaffiliated
issuers
....................................
(7,514,211)
(2,504,414)
(4,613,275)
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
....................................
(9,429,210)
(6,628,621)
(6,131,054)
Net
realized
and
unrealized
gain
(loss)
..........................
(16,943,421)
(9,133,035)
(10,744,329)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
........
$(4,193,076)
$1,276,641
$(3,864,120)
Franklin
Tax-Free
Trust
Financial
Statements
Statements
of
Changes
in
Net
Assets
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
134
Franklin
Alabama
Tax-Free
Income
Fund
Franklin
Florida
Tax-Free
Income
Fund
Six
Months
Ended
August
31,
2020
(Unaudited)
Year
Ended
February
29,
2020
Six
Months
Ended
August
31,
2020
(Unaudited)
Year
Ended
February
29,
2020
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
............
$3,390,741
$6,672,461
$8,963,391
$18,352,136
Net
realized
gain
(loss)
............
(175,722)
46,250
(1,040,521)
(3,433,019)
Net
change
in
unrealized
appreciation
(depreciation)
.................
(2,384,318)
12,131,982
(8,594,148)
24,683,958
Net
increase
(decrease)
in
net
assets
resulting
from
operations
.
830,701
18,850,693
(671,278)
39,603,075
Distributions
to
shareholders:
Class
A
........................
(248,691)
(317,567)
(914,316)
(1,344,456)
Class
A1
.......................
(2,505,217)
(5,589,570)
(6,690,750)
(15,447,317)
Class
C
........................
(316,576)
(744,996)
(434,664)
(1,065,910)
Class
R6
.......................
(24,441)
(34,140)
(63,752)
(104,819)
Advisor
Class
...................
(174,350)
(322,459)
(499,009)
(1,046,757)
Total
distributions
to
shareholders
.....
(3,269,275)
(7,008,732)
(8,602,491)
(19,009,259)
Capital
share
transactions:
(Note
2
)
Class
A
........................
7,488,361
8,513,207
13,598,808
25,615,355
Class
A1
.......................
(4,352,977)
(10,994,521)
(20,136,465)
(42,082,463)
Class
C
........................
(5,226,112)
(974,330)
(4,294,608)
(5,016,824)
Class
R6
.......................
245,824
778,923
1,086,342
890,154
Advisor
Class
...................
2,369,309
2,867,278
767,314
4,938,718
Total
capital
share
transactions
.......
524,405
190,557
(8,978,609)
(15,655,060)
Net
increase
(decrease)
in
net
assets
.....................
(1,914,169)
12,032,518
(18,252,378)
4,938,756
Net
assets:
Beginning
of
period
................
247,456,688
235,424,170
563,825,741
558,886,985
End
of
period
.....................
$245,542,519
$247,456,688
$545,573,363
$563,825,741
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.
Semiannual
Report
135
Franklin
Georgia
Tax-Free
Income
Fund
Franklin
Kentucky
Tax-Free
Income
Fund
Six
Months
Ended
August
31,
2020
(Unaudited)
Year
Ended
February
29,
2020
Six
Months
Ended
August
31,
2020
(Unaudited)
Year
Ended
February
29,
2020
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
............
$6,334,104
$13,181,495
$2,015,856
$4,140,560
Net
realized
gain
(loss)
............
(2,396,027)
508,055
(735,060)
109,195
Net
change
in
unrealized
appreciation
(depreciation)
.................
(6,484,249)
23,836,229
(2,088,383)
6,635,270
Net
increase
(decrease)
in
net
assets
resulting
from
operations
.
(2,546,172)
37,525,779
(807,587)
10,885,025
Distributions
to
shareholders:
Class
A
........................
(770,402)
(990,716)
(123,855)
(166,370)
Class
A1
.......................
(3,920,403)
(9,536,034)
(1,638,393)
(3,839,796)
Class
C
........................
(611,707)
(1,680,955)
—
—
Class
R6
.......................
(67,703)
(142,672)
(28,638)
(60,797)
Advisor
Class
...................
(855,366)
(1,523,717)
(167,517)
(332,091)
Total
distributions
to
shareholders
.....
(6,225,581)
(13,874,094)
(1,958,403)
(4,399,054)
Capital
share
transactions:
(Note
2
)
Class
A
........................
15,058,562
33,354,372
1,842,853
5,918,655
Class
A1
.......................
(19,416,811)
(20,279,178)
(6,627,481)
(8,020,923)
Class
C
........................
(10,375,765)
(13,498,201)
—
—
Class
R6
.......................
140,745
967,492
(52,422)
232,390
Advisor
Class
...................
10,962,091
11,265,270
445,464
2,397,011
Total
capital
share
transactions
.......
(3,631,178)
11,809,755
(4,391,586)
527,133
Net
increase
(decrease)
in
net
assets
.....................
(12,402,931)
35,461,440
(7,157,576)
7,013,104
Net
assets:
Beginning
of
period
................
485,576,458
450,115,018
151,206,598
144,193,494
End
of
period
.....................
$473,173,527
$485,576,458
$144,049,022
$151,206,598
Franklin
Tax-Free
Trust
Financial
Statements
Statements
of
Changes
in
Net
Assets
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
136
Franklin
Louisiana
Tax-Free
Income
Fund
Franklin
Maryland
Tax-Free
Income
Fund
Six
Months
Ended
August
31,
2020
(Unaudited)
Year
Ended
February
29,
2020
Six
Months
Ended
August
31,
2020
(Unaudited)
Year
Ended
February
29,
2020
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
............
$5,186,467
$10,775,756
$5,708,241
$11,470,348
Net
realized
gain
(loss)
............
(884,532)
294,951
(2,693,863)
17,272
Net
change
in
unrealized
appreciation
(depreciation)
.................
(9,080,598)
21,652,708
(8,739,501)
21,754,293
Net
increase
(decrease)
in
net
assets
resulting
from
operations
.
(4,778,663)
32,723,415
(5,725,123)
33,241,913
Distributions
to
shareholders:
Class
A
........................
(592,120)
(868,582)
(826,964)
(1,162,390)
Class
A1
.......................
(3,646,661)
(8,535,152)
(3,598,711)
(8,328,834)
Class
C
........................
(370,111)
(958,351)
(467,978)
(1,220,752)
Class
R6
.......................
(75,403)
(140,907)
(56,418)
(81,311)
Advisor
Class
...................
(383,350)
(706,042)
(769,401)
(1,439,823)
Total
distributions
to
shareholders
.....
(5,067,645)
(11,209,034)
(5,719,472)
(12,233,110)
Capital
share
transactions:
(Note
2
)
Class
A
........................
6,570,414
28,141,868
11,270,255
31,400,326
Class
A1
.......................
(17,086,355)
(10,470,379)
(8,946,373)
(23,272,391)
Class
C
........................
(5,504,989)
(6,326,360)
(5,501,929)
(13,320,361)
Class
R6
.......................
791,790
1,259,432
787,409
1,755,413
Advisor
Class
...................
3,046,170
7,048,753
1,035,883
7,401,335
Total
capital
share
transactions
.......
(12,182,970)
19,653,314
(1,354,755)
3,964,322
Net
increase
(decrease)
in
net
assets
.....................
(22,029,278)
41,167,695
(12,799,350)
24,973,125
Net
assets:
Beginning
of
period
................
409,169,377
368,001,682
433,635,475
408,662,350
End
of
period
.....................
$387,140,099
$409,169,377
$420,836,125
$433,635,475
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.
Semiannual
Report
137
Franklin
Missouri
Tax-Free
Income
Fund
Franklin
North
Carolina
Tax-Free
Income
Fund
Six
Months
Ended
August
31,
2020
(Unaudited)
Year
Ended
February
29,
2020
Six
Months
Ended
August
31,
2020
(Unaudited)
Year
Ended
February
29,
2020
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
............
$12,750,345
$26,881,430
$10,409,676
$21,642,436
Net
realized
gain
(loss)
............
(7,514,211)
(1,223,912)
(2,504,414)
(4,208,612)
Net
change
in
unrealized
appreciation
(depreciation)
.................
(9,429,210)
55,206,464
(6,628,621)
44,578,512
Net
increase
(decrease)
in
net
assets
resulting
from
operations
.
(4,193,076)
80,863,982
1,276,641
62,012,336
Distributions
to
shareholders:
Class
A
........................
(1,578,962)
(2,479,973)
(1,253,938)
(1,909,150)
Class
A1
.......................
(8,817,757)
(20,398,654)
(6,736,181)
(15,553,662)
Class
C
........................
(985,358)
(2,461,941)
(772,372)
(2,120,789)
Class
R6
.......................
(353,013)
(617,229)
(149,547)
(265,318)
Advisor
Class
...................
(1,048,462)
(2,074,408)
(1,376,464)
(2,625,964)
Total
distributions
to
shareholders
.....
(12,783,552)
(28,032,205)
(10,288,502)
(22,474,883)
Capital
share
transactions:
(Note
2
)
Class
A
........................
25,583,871
54,466,241
26,759,536
49,292,923
Class
A1
.......................
(26,389,337)
(29,874,112)
(21,162,924)
(35,901,046)
Class
C
........................
(19,226,738)
(9,631,476)
(19,070,354)
(19,677,843)
Class
R6
.......................
4,350,663
3,668,315
1,808,933
2,734,581
Advisor
Class
...................
(3,903,142)
19,150,636
9,446,987
16,966,358
Total
capital
share
transactions
.......
(19,584,683)
37,779,604
(2,217,822)
13,414,973
Net
increase
(decrease)
in
net
assets
.....................
(36,561,311)
90,611,381
(11,229,683)
52,952,426
Net
assets:
Beginning
of
period
................
1,042,634,903
952,023,522
876,849,134
823,896,708
End
of
period
.....................
$1,006,073,592
$1,042,634,903
$865,619,451
$876,849,134
Franklin
Tax-Free
Trust
Financial
Statements
Statements
of
Changes
in
Net
Assets
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
138
Franklin
Virginia
Tax-Free
Income
Fund
Six
Months
Ended
August
31,
2020
(Unaudited)
Year
Ended
February
29,
2020
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
.................................................
$6,880,209
$16,399,628
Net
realized
gain
(loss)
.................................................
(4,613,275)
726,360
Net
change
in
unrealized
appreciation
(depreciation)
...........................
(6,131,054)
27,971,694
Net
increase
(decrease)
in
net
assets
resulting
from
operations
................
(3,864,120)
45,097,682
Distributions
to
shareholders:
Class
A
.............................................................
(847,465)
(1,530,613)
Class
A1
............................................................
(4,303,447)
(11,282,511)
Class
C
.............................................................
(404,624)
(1,289,215)
Class
R6
............................................................
(68,593)
(160,098)
Advisor
Class
........................................................
(1,266,284)
(2,853,868)
Total
distributions
to
shareholders
..........................................
(6,890,413)
(17,116,305)
Capital
share
transactions:
(Note
2
)
Class
A
.............................................................
20,105,094
34,825,054
Class
A1
............................................................
(19,179,759)
(22,227,828)
Class
C
.............................................................
(9,587,404)
(12,220,357)
Class
R6
............................................................
152,376
636,021
Advisor
Class
........................................................
7,497,984
20,469,834
Total
capital
share
transactions
............................................
(1,011,709)
21,482,724
Net
increase
(decrease)
in
net
assets
...................................
(11,766,242)
49,464,101
Net
assets:
Beginning
of
period
.....................................................
643,635,833
594,171,732
End
of
period
..........................................................
$631,869,591
$643,635,833
Franklin
Tax-Free
Trust
139
franklintempleton.com
Semiannual
Report
Notes
to
Financial
Statements
(unaudited)
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-
three
separate
funds,
nine
of
which
are
included
in
this
report
(Funds)
and
applies
the
specialized
accounting
and
reporting
guidance
in
U.S.
Generally
Accepted
Accounting
Principles
(U.S.
GAAP).
The
classes
of
shares
offered
within
each
of
the
Funds
are
indicated
below.
Class
C
shares
automatically
convert
to
Class
A
shares
after
they
have
been
held
for
10
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
Kentucky
Tax-Free
Income
Fund
Class
A,
Class
A1,
Class
C,
Class
R6
&
Advisor
Class
Franklin
Alabama
Tax-Free
Income
Fund
Franklin
Florida
Tax-Free
Income
Fund
Franklin
Georgia
Tax-Free
Income
Fund
Franklin
Louisiana
Tax-Free
Income
Fund
Franklin
Maryland
Tax-Free
Income
Fund
Franklin
Missouri
Tax-Free
Income
Fund
Franklin
North
Carolina
Tax-Free
Income
Fund
Franklin
Virginia
Tax-Free
Income
Fund
The
following
summarizes
the Funds'
significant
accounting
policies. 
a.
Financial
Instrument
Valuation 
The Funds'
investments
in
financial
instruments
are
carried
at
fair
value
daily.
Fair
value
is
the
price
that
would
be
received
to
sell
an
asset
or
paid
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
on
the
measurement
date.
The Funds calculate the
net
asset
value
(NAV)
per
share
each business
day as
of
4
p.m.
Eastern
time
or
the
regularly
scheduled
close
of
the
New
York
Stock
Exchange
(NYSE),
whichever
is
earlier.
Under
compliance
policies
and
procedures
approved
by
the
Trust’s
Board
of
Trustees
(the
Board),
the
Funds' administrator
has
responsibility
for
oversight
of
valuation,
including
leading
the
cross-functional
Valuation
Committee
(VC).
The
Funds
may
utilize
independent
pricing
services,
quotations
from
securities
and
financial
instrument
dealers,
and
other
market
sources
to
determine
fair
value. 
Debt
securities
generally
trade
in
the
OTC
market
rather
than
on
a
securities
exchange.
The
Funds'
pricing
services
use
multiple
valuation
techniques
to
determine
fair
value.
In
instances
where
sufficient
market
activity
exists,
the
pricing
services
may
utilize
a
market-based
approach
through
which
quotes
from
market
makers
are
used
to
determine
fair
value.
In
instances
where
sufficient
market
activity
may
not
exist
or
is
limited,
the
pricing
services
also
utilize
proprietary
valuation
models
which
may
consider
market
characteristics
such
as
benchmark
yield
curves,
credit
spreads,
estimated
default
rates,
anticipated
market
interest
rate
volatility,
coupon
rates,
anticipated
timing
of
principal
repayments,
underlying
collateral,
and
other
unique
security
features
in
order
to
estimate
the
relevant
cash
flows,
which
are
then
discounted
to
calculate
the
fair
value.
The
Funds
have
procedures
to
determine
the
fair
value
of
financial
instruments
for
which
market
prices
are
not
reliable
or
readily
available.
Under
these
procedures,
the
Funds
primarily
employ
a
market-based
approach
which
may
use
related
or
comparable
assets
or
liabilities,
recent
transactions,
market
multiples,
book
values,
and
other
relevant
information
for
the
investment
to
determine
the
fair
value
of
the
investment.
An
income-based
valuation
approach
may
also
be
used
in
which
the
anticipated
future
cash
flows
of
the
investment
are
discounted
to
calculate
fair
value.
Discounts
may
also
be
applied
due
to
the
nature
or
duration
of
any
restrictions
on
the
disposition
of
the
investments.
Due
to
the
inherent
uncertainty
of
valuations
of
such
investments,
the
fair
values
may
differ
significantly
from
the
values
that
would
have
been
used
had
an
active
market
existed.
b.
Securities
Purchased
on
a
When-Issued
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.
Sufficient
assets
have
been
segregated
for
these
securities.
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
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
(unaudited)
140
franklintempleton.com
Semiannual
Report
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
August
31,
2020, 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
(unaudited)
141
franklintempleton.com
Semiannual
Report
2.
Shares
of
Beneficial
Interest
At
August
31,
2020,
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
Florida
Tax-Free
Income
Fund
Shares
Amount
Shares
Amount
Class
A
Class
A
Shares:
Six
Months
ended
August
31,
2020
Shares
sold
a
...................................
853,489
$9,603,424
1,998,514
$21,110,803
Shares
issued
in
reinvestment
of
distributions
..........
20,791
233,163
82,528
870,056
Shares
redeemed
...............................
(208,444)
(2,348,226)
(798,354)
(8,382,051)
Net
increase
(decrease)
665,836
$7,488,361
1,282,688
$13,598,808
Year
ended
February
29,
2020
Shares
sold
a
...................................
966,960
$10,761,934
2,882,742
$30,728,486
Shares
issued
in
reinvestment
of
distributions
..........
26,545
296,269
121,001
1,291,705
Shares
redeemed
...............................
(228,457)
(2,544,996)
(600,429)
(6,404,836)
Net
increase
(decrease)
765,048
$8,513,207
2,403,314
$25,615,355
Class
A1
Class
A1
Shares:
Six
Months
ended
August
31,
2020
Shares
sold
...................................
313,476
$3,490,853
587,707
$6,211,825
Shares
issued
in
reinvestment
of
distributions
..........
198,196
2,218,407
517,326
5,445,585
Shares
redeemed
...............................
(902,786)
(10,062,237)
(3,031,574)
(31,793,875)
Net
increase
(decrease)
(391,114)
$(4,352,977)
(1,926,541)
$(20,136,465)
Year
ended
February
29,
2020
Shares
sold
...................................
589,102
$6,558,582
889,592
$9,456,567
Shares
issued
in
reinvestment
of
distributions
..........
439,394
4,887,742
1,168,026
12,442,917
Shares
redeemed
...............................
(2,020,745)
(22,440,845)
(6,022,018)
(63,981,947)
Net
increase
(decrease)
(992,249)
$(10,994,521)
(3,964,400)
$(42,082,463)
Class
C
Class
C
Shares:
Six
Months
ended
August
31,
2020
Shares
sold
...................................
97,659
$1,105,219
233,725
$2,518,501
Shares
issued
in
reinvestment
of
distributions
..........
26,055
295,533
35,801
385,028
Shares
redeemed
a
..............................
(582,842)
(6,626,864)
(667,409)
(7,198,137)
Net
increase
(decrease)
(459,128)
$(5,226,112)
(397,883)
$(4,294,608)
Year
ended
February
29,
2020
Shares
sold
...................................
408,310
$4,602,069
729,079
$7,937,140
Shares
issued
in
reinvestment
of
distributions
..........
60,928
686,946
86,952
946,802
Shares
redeemed
a
..............................
(556,983)
(6,263,345)
(1,277,713)
(13,900,766)
Net
increase
(decrease)
(87,745)
$(974,330)
(461,682)
$(5,016,824)
Class
R6
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
(unaudited)
142
franklintempleton.com
Semiannual
Report
Franklin
Alabama
Tax-Free
Income
Fund
Franklin
Florida
Tax-Free
Income
Fund
Shares
Amount
Shares
Amount
Class
R6
Shares:
Six
Months
ended
August
31,
2020
Shares
sold
...................................
31,525
$354,073
134,831
$1,412,921
Shares
issued
in
reinvestment
of
distributions
..........
2,182
24,441
6,033
63,749
Shares
redeemed
...............................
(11,978)
(132,690)
(37,296)
(390,328)
Net
increase
(decrease)
21,729
$245,824
103,568
$1,086,342
Year
ended
February
29,
2020
Shares
sold
...................................
76,244
$847,722
127,110
$1,354,069
Shares
issued
in
reinvestment
of
distributions
..........
3,062
34,140
9,755
104,287
Shares
redeemed
...............................
(9,204)
(102,939)
(53,322)
(568,202)
Net
increase
(decrease)
70,102
$778,923
83,543
$890,154
Advisor
Class
Advisor
Class
Shares:
Six
Months
ended
August
31,
2020
Shares
sold
...................................
296,018
$3,324,509
577,107
$6,120,211
Shares
issued
in
reinvestment
of
distributions
..........
14,154
158,540
37,503
395,852
Shares
redeemed
...............................
(100,122)
(1,113,740)
(543,736)
(5,748,749)
Net
increase
(decrease)
210,050
$2,369,309
70,874
$767,314
Year
ended
February
29,
2020
Shares
sold
...................................
397,535
$4,401,410
1,156,586
$12,298,645
Shares
issued
in
reinvestment
of
distributions
..........
25,890
288,344
74,003
790,857
Shares
redeemed
...............................
(163,970)
(1,822,476)
(765,239)
(8,150,784)
Net
increase
(decrease)
259,455
$2,867,278
465,350
$4,938,718
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
(unaudited)
143
franklintempleton.com
Semiannual
Report
Franklin
Georgia
Tax-Free
Income
Fund
Franklin
Kentucky
Tax-Free
Income
Fund
Shares
Amount
Shares
Amount
Class
A
Class
A
Shares:
Six
Months
ended
August
31,
2020
Shares
sold
a
...................................
1,606,843
$19,099,119
238,412
$2,598,769
Shares
issued
in
reinvestment
of
distributions
..........
61,176
724,780
11,214
122,796
Shares
redeemed
...............................
(404,282)
(4,765,337)
(80,889)
(878,712)
Net
increase
(decrease)
1,263,737
$15,058,562
168,737
$1,842,853
Year
ended
February
29,
2020
Shares
sold
a
...................................
3,117,046
$37,050,467
607,556
$6,652,693
Shares
issued
in
reinvestment
of
distributions
..........
78,603
937,031
14,806
163,090
Shares
redeemed
...............................
(389,290)
(4,633,126)
(81,736)
(897,128)
Net
increase
(decrease)
2,806,359
$33,354,372
540,626
$5,918,655
Class
A1
Class
A1
Shares:
Six
Months
ended
August
31,
2020
Shares
sold
...................................
463,211
$5,510,422
261,747
$2,866,398
Shares
issued
in
reinvestment
of
distributions
..........
296,057
3,504,876
144,287
1,577,623
Shares
redeemed
...............................
(2,427,158)
(28,432,109)
(1,012,797)
(11,071,502)
Net
increase
(decrease)
(1,667,890)
$(19,416,811)
(606,763)
$(6,627,481)
Year
ended
February
29,
2020
Shares
sold
...................................
1,294,228
$15,366,072
495,361
$5,434,664
Shares
issued
in
reinvestment
of
distributions
..........
711,725
8,463,585
336,026
3,691,035
Shares
redeemed
...............................
(3,715,357)
(44,108,835)
(1,562,027)
(17,146,622)
Net
increase
(decrease)
(1,709,404)
$(20,279,178)
(730,640)
$(8,020,923)
Class
C
Class
C
Shares:
Six
Months
ended
August
31,
2020
Shares
sold
...................................
246,355
$2,961,418
—
$—
Shares
issued
in
reinvestment
of
distributions
..........
45,584
547,810
—
—
Shares
redeemed
a
..............................
(1,150,650)
(13,884,993)
—
—
Net
increase
(decrease)
(858,711)
$(10,375,765)
—
$—
Year
ended
February
29,
2020
Shares
sold
...................................
626,977
$7,578,333
—
$—
Shares
issued
in
reinvestment
of
distributions
..........
124,153
1,498,211
—
—
Shares
redeemed
a
..............................
(1,873,564)
(22,574,745)
—
—
Net
increase
(decrease)
(1,122,434)
$(13,498,201)
—
$
—
Class
R6
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
(unaudited)
144
franklintempleton.com
Semiannual
Report
Franklin
Georgia
Tax-Free
Income
Fund
Franklin
Kentucky
Tax-Free
Income
Fund
Shares
Amount
Shares
Amount
Class
R6
Shares:
Six
Months
ended
August
31,
2020
Shares
sold
...................................
73,313
$870,742
15,612
$171,577
Shares
issued
in
reinvestment
of
distributions
..........
5,686
67,359
2,617
28,637
Shares
redeemed
...............................
(68,293)
(797,356)
(23,334)
(252,636)
Net
increase
(decrease)
10,706
$140,745
(5,105)
$(52,422)
Year
ended
February
29,
2020
Shares
sold
...................................
131,588
$1,560,954
34,215
$375,727
Shares
issued
in
reinvestment
of
distributions
..........
11,981
142,606
5,531
60,797
Shares
redeemed
...............................
(61,736)
(736,068)
(18,587)
(204,134)
Net
increase
(decrease)
81,833
$967,492
21,159
$232,390
Advisor
Class
Advisor
Class
Shares:
Six
Months
ended
August
31,
2020
Shares
sold
...................................
1,397,399
$16,396,768
139,341
$1,509,687
Shares
issued
in
reinvestment
of
distributions
..........
65,001
770,485
14,601
159,715
Shares
redeemed
...............................
(525,641)
(6,205,162)
(113,239)
(1,223,938)
Net
increase
(decrease)
936,759
$10,962,091
40,703
$445,464
Year
ended
February
29,
2020
Shares
sold
...................................
1,735,463
$20,636,393
312,689
$3,431,829
Shares
issued
in
reinvestment
of
distributions
..........
111,515
1,327,560
28,939
318,227
Shares
redeemed
...............................
(899,476)
(10,698,683)
(123,073)
(1,353,045)
Net
increase
(decrease)
947,502
$11,265,270
218,555
$2,397,011
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
(unaudited)
145
franklintempleton.com
Semiannual
Report
Franklin
Louisiana
Tax-Free
Income
Fund
Franklin
Maryland
Tax-Free
Income
Fund
Shares
Amount
Shares
Amount
Class
A
Class
A
Shares:
Six
Months
ended
August
31,
2020
Shares
sold
a
...................................
1,139,052
$12,838,154
1,401,304
$15,392,960
Shares
issued
in
reinvestment
of
distributions
..........
51,302
574,895
71,609
784,706
Shares
redeemed
...............................
(629,193)
(6,842,635)
(447,953)
(4,907,411)
Net
increase
(decrease)
561,161
$6,570,414
1,024,960
$11,270,255
Year
ended
February
29,
2020
Shares
sold
a
...................................
3,078,405
$34,636,302
3,248,038
$35,986,403
Shares
issued
in
reinvestment
of
distributions
..........
76,182
859,627
100,259
1,113,665
Shares
redeemed
...............................
(654,843)
(7,354,061)
(514,895)
(5,699,742)
Net
increase
(decrease)
2,499,744
$28,141,868
2,833,402
$31,400,326
Class
A1
Class
A1
Shares:
Six
Months
ended
August
31,
2020
Shares
sold
...................................
404,378
$4,539,402
362,590
$3,993,034
Shares
issued
in
reinvestment
of
distributions
..........
312,431
3,498,062
289,329
3,170,603
Shares
redeemed
...............................
(2,258,350)
(25,123,819)
(1,467,002)
(16,110,010)
Net
increase
(decrease)
(1,541,541)
$(17,086,355)
(815,083)
$(8,946,373)
Year
ended
February
29,
2020
Shares
sold
...................................
1,455,238
$16,330,759
1,367,506
$15,119,476
Shares
issued
in
reinvestment
of
distributions
..........
726,822
8,179,032
659,493
7,313,403
Shares
redeemed
...............................
(3,114,671)
(34,980,170)
(4,126,564)
(45,705,270)
Net
increase
(decrease)
(932,611)
$(10,470,379)
(2,099,565)
$(23,272,391)
Class
C
Class
C
Shares:
Six
Months
ended
August
31,
2020
Shares
sold
...................................
171,923
$1,957,312
197,980
$2,201,374
Shares
issued
in
reinvestment
of
distributions
..........
31,416
357,443
38,211
427,381
Shares
redeemed
a
..............................
(686,796)
(7,819,744)
(725,920)
(8,130,684)
Net
increase
(decrease)
(483,457)
$(5,504,989)
(489,729)
$(5,501,929)
Year
ended
February
29,
2020
Shares
sold
...................................
615,322
$7,034,147
593,992
$6,706,256
Shares
issued
in
reinvestment
of
distributions
..........
80,192
916,973
97,844
1,106,804
Shares
redeemed
a
..............................
(1,252,404)
(14,277,480)
(1,876,195)
(21,133,421)
Net
increase
(decrease)
(556,890)
$(6,326,360)
(1,184,359)
$(13,320,361)
Class
R6
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
(unaudited)
146
franklintempleton.com
Semiannual
Report
Franklin
Louisiana
Tax-Free
Income
Fund
Franklin
Maryland
Tax-Free
Income
Fund
Shares
Amount
Shares
Amount
Class
R6
Shares:
Six
Months
ended
August
31,
2020
Shares
sold
...................................
123,284
$1,393,799
94,555
$1,043,371
Shares
issued
in
reinvestment
of
distributions
..........
6,600
73,924
5,097
55,962
Shares
redeemed
...............................
(60,563)
(675,933)
(28,702)
(311,924)
Net
increase
(decrease)
69,321
$791,790
70,950
$787,409
Year
ended
February
29,
2020
Shares
sold
...................................
168,764
$1,897,182
182,503
$2,025,389
Shares
issued
in
reinvestment
of
distributions
..........
12,230
137,806
7,272
80,894
Shares
redeemed
...............................
(68,779)
(775,556)
(31,620)
(350,870)
Net
increase
(decrease)
112,215
$1,259,432
158,155
$1,755,413
Advisor
Class
Advisor
Class
Shares:
Six
Months
ended
August
31,
2020
Shares
sold
...................................
758,814
$8,545,608
585,968
$6,417,604
Shares
issued
in
reinvestment
of
distributions
..........
30,306
339,546
58,965
646,968
Shares
redeemed
...............................
(524,639)
(5,838,984)
(551,848)
(6,028,689)
Net
increase
(decrease)
264,481
$3,046,170
93,085
$1,035,883
Year
ended
February
29,
2020
Shares
sold
...................................
913,327
$10,262,374
1,502,504
$16,698,457
Shares
issued
in
reinvestment
of
distributions
..........
55,037
620,131
111,097
1,234,116
Shares
redeemed
...............................
(341,337)
(3,833,752)
(950,652)
(10,531,238)
Net
increase
(decrease)
627,027
$7,048,753
662,949
$7,401,335
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
(unaudited)
147
franklintempleton.com
Semiannual
Report
Franklin
Missouri
Tax-Free
Income
Fund
Franklin
North
Carolina
Tax-Free
Income
Fund
Shares
Amount
Shares
Amount
Class
A
Class
A
Shares:
Six
Months
ended
August
31,
2020
Shares
sold
a
...................................
3,130,007
$37,047,482
3,164,137
$36,923,287
Shares
issued
in
reinvestment
of
distributions
..........
130,308
1,535,601
99,370
1,155,558
Shares
redeemed
...............................
(1,110,262)
(12,999,212)
(986,752)
(11,319,309)
Net
increase
(decrease)
2,150,053
$25,583,871
2,276,755
$26,759,536
Year
ended
February
29,
2020
Shares
sold
a
...................................
5,063,615
$59,608,062
4,908,463
$56,828,039
Shares
issued
in
reinvestment
of
distributions
..........
206,689
2,441,913
151,353
1,757,797
Shares
redeemed
...............................
(642,039)
(7,583,734)
(802,403)
(9,292,913)
Net
increase
(decrease)
4,628,265
$54,466,241
4,257,413
$49,292,923
Class
A1
Class
A1
Shares:
Six
Months
ended
August
31,
2020
Shares
sold
...................................
1,009,799
$11,920,887
1,089,947
$12,676,873
Shares
issued
in
reinvestment
of
distributions
..........
696,885
8,200,277
521,152
6,052,245
Shares
redeemed
...............................
(3,975,715)
(46,510,501)
(3,463,080)
(39,892,042)
Net
increase
(decrease)
(2,269,031)
$(26,389,337)
(1,851,981)
$(21,162,924)
Year
ended
February
29,
2020
Shares
sold
...................................
3,283,944
$38,647,918
2,625,053
$30,414,867
Shares
issued
in
reinvestment
of
distributions
..........
1,604,137
18,909,993
1,199,025
13,898,015
Shares
redeemed
...............................
(7,430,668)
(87,432,023)
(6,940,277)
(80,213,928)
Net
increase
(decrease)
(2,542,587)
$(29,874,112)
(3,116,199)
$(35,901,046)
Class
C
Class
C
Shares:
Six
Months
ended
August
31,
2020
Shares
sold
...................................
423,905
$5,044,721
332,204
$3,921,480
Shares
issued
in
reinvestment
of
distributions
..........
78,259
930,197
60,887
718,567
Shares
redeemed
a
..............................
(2,106,824)
(25,201,656)
(2,003,029)
(23,710,401)
Net
increase
(decrease)
(1,604,660)
$(19,226,738)
(1,609,938)
$(19,070,354)
Year
ended
February
29,
2020
Shares
sold
...................................
1,144,383
$13,628,985
1,143,114
$13,458,607
Shares
issued
in
reinvestment
of
distributions
..........
194,287
2,312,905
163,687
1,928,202
Shares
redeemed
a
..............................
(2,153,940)
(25,573,366)
(2,983,622)
(35,064,652)
Net
increase
(decrease)
(815,270)
$(9,631,476)
(1,676,821)
$(19,677,843)
Class
R6
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
(unaudited)
148
franklintempleton.com
Semiannual
Report
Franklin
Missouri
Tax-Free
Income
Fund
Franklin
North
Carolina
Tax-Free
Income
Fund
Shares
Amount
Shares
Amount
Class
R6
Shares:
Six
Months
ended
August
31,
2020
Shares
sold
...................................
604,562
$7,045,973
243,474
$2,817,181
Shares
issued
in
reinvestment
of
distributions
..........
26,174
308,365
12,534
145,685
Shares
redeemed
...............................
(257,554)
(3,003,675)
(100,799)
(1,153,933)
Net
increase
(decrease)
373,182
$4,350,663
155,209
$1,808,933
Year
ended
February
29,
2020
Shares
sold
...................................
595,581
$7,036,125
389,272
$4,506,054
Shares
issued
in
reinvestment
of
distributions
..........
49,797
587,912
21,785
252,631
Shares
redeemed
...............................
(336,455)
(3,955,722)
(174,599)
(2,024,104)
Net
increase
(decrease)
308,923
$3,668,315
236,458
$2,734,581
Advisor
Class
Advisor
Class
Shares:
Six
Months
ended
August
31,
2020
Shares
sold
...................................
788,144
$9,287,131
1,714,242
$19,967,781
Shares
issued
in
reinvestment
of
distributions
..........
70,400
829,198
112,299
1,305,194
Shares
redeemed
...............................
(1,202,788)
(14,019,471)
(1,029,538)
(11,825,988)
Net
increase
(decrease)
(344,244)
$(3,903,142)
797,003
$9,446,987
Year
ended
February
29,
2020
Shares
sold
...................................
2,353,795
$27,823,124
2,697,429
$31,273,316
Shares
issued
in
reinvestment
of
distributions
..........
135,586
1,601,095
213,326
2,474,576
Shares
redeemed
...............................
(871,698)
(10,273,583)
(1,450,578)
(16,781,534)
Net
increase
(decrease)
1,617,683
$19,150,636
1,460,177
$16,966,358
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
(unaudited)
149
franklintempleton.com
Semiannual
Report
Franklin
Virginia
Tax-Free
Income
Fund
Shares
Amount
Class
A
Class
A
Shares:
Six
Months
ended
August
31,
2020
Shares
sold
a
...................................
2,456,319
$27,490,624
Shares
issued
in
reinvestment
of
distributions
..........
64,684
720,326
Shares
redeemed
...............................
(741,593)
(8,105,856)
Net
increase
(decrease)
1,779,410
$20,105,094
Year
ended
February
29,
2020
Shares
sold
a
...................................
3,764,847
$41,985,187
Shares
issued
in
reinvestment
of
distributions
..........
117,098
1,309,573
Shares
redeemed
...............................
(758,950)
(8,469,706)
Net
increase
(decrease)
3,122,995
$34,825,054
Class
A1
Class
A1
Shares:
Six
Months
ended
August
31,
2020
Shares
sold
...................................
421,519
$4,692,989
Shares
issued
in
reinvestment
of
distributions
..........
343,950
3,827,806
Shares
redeemed
...............................
(2,505,374)
(27,700,554)
Net
increase
(decrease)
(1,739,905)
$(19,179,759)
Year
ended
February
29,
2020
Shares
sold
...................................
1,495,566
$16,675,015
Shares
issued
in
reinvestment
of
distributions
..........
895,337
9,993,023
Shares
redeemed
...............................
(4,386,693)
(48,895,866)
Net
increase
(decrease)
(1,995,790)
$(22,227,828)
Class
C
Class
C
Shares:
Six
Months
ended
August
31,
2020
Shares
sold
...................................
178,447
$2,026,793
Shares
issued
in
reinvestment
of
distributions
..........
32,113
363,517
Shares
redeemed
a
..............................
(1,053,560)
(11,977,714)
Net
increase
(decrease)
(843,000)
$(9,587,404)
Year
ended
February
29,
2020
Shares
sold
...................................
503,199
$5,718,840
Shares
issued
in
reinvestment
of
distributions
..........
101,156
1,148,068
Shares
redeemed
a
..............................
(1,684,958)
(19,087,265)
Net
increase
(decrease)
(1,080,603)
$(12,220,357)
Class
R6
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
(unaudited)
150
franklintempleton.com
Semiannual
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:
Six
Months
ended
August
31,
2020
Shares
sold
...................................
68,059
$756,180
Shares
issued
in
reinvestment
of
distributions
..........
6,139
68,388
Shares
redeemed
...............................
(60,593)
(672,192)
Net
increase
(decrease)
13,605
$152,376
Year
ended
February
29,
2020
Shares
sold
...................................
128,959
$1,437,831
Shares
issued
in
reinvestment
of
distributions
..........
14,193
158,609
Shares
redeemed
...............................
(85,930)
(960,419)
Net
increase
(decrease)
57,222
$636,021
Advisor
Class
Advisor
Class
Shares:
Six
Months
ended
August
31,
2020
Shares
sold
...................................
2,173,973
$24,261,539
Shares
issued
in
reinvestment
of
distributions
..........
104,353
1,162,948
Shares
redeemed
...............................
(1,625,286)
(17,926,503)
Net
increase
(decrease)
653,040
$7,497,984
Year
ended
February
29,
2020
Shares
sold
...................................
3,076,522
$34,243,736
Shares
issued
in
reinvestment
of
distributions
..........
238,524
2,666,520
Shares
redeemed
...............................
(1,473,833)
(16,440,422)
Net
increase
(decrease)
1,841,213
$20,469,834
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
Templeton
Distributors,
Inc.
(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
(unaudited)
151
franklintempleton.com
Semiannual
Report
a.
Management
Fees
The
Funds
pay
an
investment
management
fee
to
Advisers
based
on
the
month-end
net
assets
of
each
of
the
Funds
as
follows:
For
the
period
ended
August
31,
2020,
each
Fund's
annualized
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
Alabama
Tax-
Free
Income
Fund
Franklin
Florida
Tax-Free
Income
Fund
Franklin
Georgia
Tax-
Free
Income
Fund
Gross
effective
investment
management
fee
rate
........
0.553%
0.497%
0.505%
Franklin
Kentucky
Tax-
Free
Income
Fund
Franklin
Louisiana
Tax-
Free
Income
Fund
Franklin
Maryland
Tax-
Free
Income
Fund
Gross
effective
investment
management
fee
rate
........
0.588%
0.515%
0.512%
Franklin
Missouri
Tax-
Free
Income
Fund
Franklin
North
Carolina
Tax-
Free
Income
Fund
Franklin
Virginia
Tax-
Free
Income
Fund
Gross
effective
investment
management
fee
rate
........
0.476%
0.481%
0.493%
3.
Transactions
with
Affiliates
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
(unaudited)
152
franklintempleton.com
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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
period:
Franklin
Alabama
Tax-
Free
Income
Fund
Franklin
Florida
Tax-Free
Income
Fund
Franklin
Georgia
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
Kentucky
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%
Class
A1
..............................
0.10%
0.10%
0.10%
Compensation
Plans:
Class
C
...............................
–
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%
3.
Transactions
with
Affiliates
(continued)
c.
Distribution
Fees
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
(unaudited)
153
franklintempleton.com
Semiannual
Report
e.
Transfer
Agent
Fees
Each
class
of
shares
pays
transfer
agent
fees
to
Investor
Services
for
its
performance
of
shareholder
servicing
obligations.
The
fees
are
based
on
an
annualized
asset
based
fee
of
0.02%
plus
a
transaction
based
fee.
In
addition,
each
class
reimburses
Investor
Services
for
out
of
pocket
expenses
incurred
and,
except
for
Class
R6,
reimburses
shareholder
servicing
fees
paid
to
third
parties.
These
fees
are
allocated
daily
based
upon
their
relative
proportion
of
such
classes'
aggregate
net
assets.
Class
R6
pays
Investor
Services
transfer
agent
fees
specific
to
that
class.
For
the
period
ended
August
31,
2020,
the
Funds
paid
transfer
agent
fees
as
noted
in
the
Statements
of
Operations
of
which
the
following
amounts
were
retained
by
Investor
Services:
Franklin
Alabama
Tax-
Free
Income
Fund
Franklin
Florida
Tax-Free
Income
Fund
Franklin
Georgia
Tax-
Free
Income
Fund
Sales
charges
retained
net
of
commissions
paid
to
unaffiliated
brokers/dealers
..................
$6,792
$5,670
$6,704
CDSC
retained
...........................
$7,302
$3,466
$5,229
Franklin
Kentucky
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
..................
$2,682
$5,585
$2,916
CDSC
retained
...........................
$(6,834)
$11,968
$3,472
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
..................
$21,304
$12,369
$7,539
CDSC
retained
...........................
$21,831
$8,486
$(9,079)
Franklin
Alabama
Tax-
Free
Income
Fund
Franklin
Florida
Tax-Free
Income
Fund
Franklin
Georgia
Tax-
Free
Income
Fund
Transfer
agent
fees
........................
$36,073
$85,885
$73,376
Franklin
Kentucky
Tax-
Free
Income
Fund
Franklin
Louisiana
Tax-
Free
Income
Fund
Franklin
Maryland
Tax-
Free
Income
Fund
Transfer
agent
fees
........................
$21,513
$54,039
$68,757
3.
Transactions
with
Affiliates
(continued)
d.
Sales
Charges/Underwriting
Agreements
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
(unaudited)
154
franklintempleton.com
Semiannual
Report
f.
Waivers
and
Expense
Reimbursements
Investor
Services
has
contractually
agreed
in
advance
to
waive
or
limit
its
fees
so
that
the
Class
R6
transfer
agent
fees
do
not
exceed
0.03%
based
on
the
average
net
assets
of
the
class
until
June
30,
2021.
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
and
sales
for
the
period
ended
August
31,
2020,
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 period
ended
August
31,
2020, the
custodian
fees
were
reduced
as
noted
in
the
Statements
of
Operations.
Franklin
Missouri
Tax-
Free
Income
Fund
Franklin
North
Carolina
Tax-
Free
Income
Fund
Franklin
Virginia
Tax-
Free
Income
Fund
Transfer
agent
fees
........................
$143,612
$121,990
$95,809
Franklin
Alabama
Tax-
Free
Income
Fund
Franklin
Florida
Tax-Free
Income
Fund
Franklin
Georgia
Tax-
Free
Income
Fund
Purchases
..............................
$800,000
$40,900,000
$200,000
Sales
..................................
—
$4,200,000
$6,840,000
Franklin
Kentucky
Tax-
Free
Income
Fund
Franklin
Louisiana
Tax-
Free
Income
Fund
Franklin
Maryland
Tax-
Free
Income
Fund
Purchases
..............................
$400,000
—
$4,700,000
Sales
..................................
$300,000
—
$4,700,000
Franklin
Missouri
Tax-
Free
Income
Fund
Franklin
North
Carolina
Tax-
Free
Income
Fund
Franklin
Virginia
Tax-
Free
Income
Fund
Purchases
..............................
$7,300,000
$3,000,000
$12,300,000
Sales
..................................
$10,100,000
$3,155,000
$18,400,000
3.
Transactions
with
Affiliates
(continued)
e.
Transfer
Agent
Fees
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
(unaudited)
155
franklintempleton.com
Semiannual
Report
5.
Income
Taxes
For
tax
purposes,
capital
losses
may
be
carried
over
to
offset
future
capital
gains. 
At
February
29,
2020,
the
capital
loss
carryforwards
were
as
follows:
At
August
31,
2020,
the
cost
of
investments
and
net
unrealized
appreciation
(depreciation)
for
income
tax
purposes
were
as
follows:
Franklin
Alabama
Tax-
Free
Income
Fund
Franklin
Florida
Tax-Free
Income
Fund
Franklin
Georgia
Tax-
Free
Income
Fund
1
1
1
1
Capital
loss
carryforwards
not
subject
to
expiration:
Short
term
.............................
$
2,907,539
$
11,263,015
$
3,076,374
Long
term
.............................
14,691,100
57,125,139
19,831,161
Total
capital
loss
carryforwards
............
$17,598,639
$68,388,154
$22,907,535
Franklin
Kentucky
Tax-
Free
Income
Fund
Franklin
Louisiana
Tax-
Free
Income
Fund
Franklin
Maryland
Tax-
Free
Income
Fund
1
1
1
1
Capital
loss
carryforwards
not
subject
to
expiration:
Short
term
.............................
$
2,281,514
$
10,920,503
$
11,616,079
Long
term
.............................
7,531,516
16,500,561
30,325,201
Total
capital
loss
carryforwards
............
$9,813,030
$27,421,064
$41,941,280
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
.............................
$
10,034,577
$
23,575,835
$
16,243,505
Long
term
.............................
64,224,169
70,664,337
37,629,164
Total
capital
loss
carryforwards
............
$74,258,746
$94,240,172
$53,872,669
Franklin
Alabama
Tax-
Free
Income
Fund
Franklin
Florida
Tax-Free
Income
Fund
Franklin
Georgia
Tax-
Free
Income
Fund
a
a
a
a
Cost
of
investments
.......................
$223,655,956
$517,495,651
$446,577,450
Unrealized
appreciation
.....................
$17,996,786
$36,161,758
$32,413,703
Unrealized
depreciation
.....................
(138,633)
(546,220)
(6,178,362)
Net
unrealized
appreciation
(depreciation)
.......
$17,858,153
$35,615,538
$26,235,341
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
(unaudited)
156
franklintempleton.com
Semiannual
Report
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,
bond
discounts
and
premiums
and
bond
workout
expenditures.
6.
Investment
Transactions
Purchases
and
sales
of
investments
(excluding
short
term
securities)
for
the
period
ended
August
31,
2020,
were
as
follows:
Franklin
Kentucky
Tax-
Free
Income
Fund
Franklin
Louisiana
Tax-
Free
Income
Fund
Franklin
Maryland
Tax-
Free
Income
Fund
a
a
a
a
Cost
of
investments
.......................
$133,709,628
$355,005,977
$392,202,564
Unrealized
appreciation
.....................
$8,331,349
$25,471,451
$25,021,962
Unrealized
depreciation
.....................
(19,363)
(2,826,686)
(2,043,770)
Net
unrealized
appreciation
(depreciation)
.......
$8,311,986
$22,644,765
$22,978,192
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
.......................
$932,435,183
$804,060,052
$588,537,750
Unrealized
appreciation
.....................
$66,087,848
$51,854,538
$39,268,338
Unrealized
depreciation
.....................
(5,010,011)
(3,065,461)
(3,450,306)
Net
unrealized
appreciation
(depreciation)
.......
$61,077,837
$48,789,077
$35,818,032
Franklin
Alabama
Tax-
Free
Income
Fund
Franklin
Florida
Tax-Free
Income
Fund
Franklin
Georgia
Tax-
Free
Income
Fund
Purchases
..............................
$23,809,208
$60,878,867
$61,886,763
Sales
..................................
$20,301,160
$69,446,160
$49,799,034
Franklin
Kentucky
Tax-
Free
Income
Fund
Franklin
Louisiana
Tax-
Free
Income
Fund
Franklin
Maryland
Tax-
Free
Income
Fund
Purchases
..............................
$8,070,450
$27,497,319
$19,934,496
Sales
..................................
$9,558,164
$36,022,927
$22,229,924
Franklin
Missouri
Tax-
Free
Income
Fund
Franklin
North
Carolina
Tax-
Free
Income
Fund
Franklin
Virginia
Tax-
Free
Income
Fund
Purchases
..............................
$112,925,763
$59,358,853
$76,444,037
Sales
..................................
$116,299,212
$72,069,153
$123,496,726
5.
Income
Taxes
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
(unaudited)
157
franklintempleton.com
Semiannual
Report
7.
Defaulted
Securities
Certain
or
all
Funds
held
defaulted
securities
and/or
other
securities
for
which
the
income
has
been
deemed
uncollectible.
The
Funds
discontinue
accruing
income
on
securities
for
which
income
has
been
deemed
uncollectible
and
provide
an
estimate
for
losses
on
interest
receivable.
The
securities
have
been
identified
in
the
accompanying
Statements
of
Investments.
At
August
31,
2020,
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.
Investing
in
Puerto
Rico
securities
may
expose
the
Funds
to
heightened
risks
due
to
recent
adverse
economic
and
market
changes,
credit
downgrades
and
ongoing
restructuring
discussions.
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. 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.
10.
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
billion
(Global
Credit
Facility)
which
matures
on
February
5,
2021.
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
period
ended
August
31,
2020,
the
Funds
did
not
use
the
Global
Credit
Facility.
Value
Percentage
of
Net
Assets
Franklin
Georgia
Tax-Free
Income
Fund
..........................................
$
3,456,295
0.7%
Franklin
Louisiana
Tax-Free
Income
Fund
.........................................
6,542,312
1.7%
Franklin
Maryland
Tax-Free
Income
Fund
.........................................
4,480,356
1.1%
Franklin
Missouri
Tax-Free
Income
Fund
..........................................
10,776,631
1.1%
Franklin
North
Carolina
Tax-Free
Income
Fund
.....................................
6,912,500
0.8%
Franklin
Virginia
Tax-Free
Income
Fund
...........................................
6,688,850
1.1%
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
(unaudited)
158
franklintempleton.com
Semiannual
Report
11.
Fair
Value
Measurements
The Funds
follow
a
fair
value
hierarchy
that
distinguishes
between
market
data
obtained
from
independent
sources
(observable
inputs)
and
the Funds'
own
market
assumptions
(unobservable
inputs).
These
inputs
are
used
in
determining
the
value
of
the Funds' financial
instruments
and
are
summarized
in
the
following
fair
value
hierarchy:
Level
1
–
quoted
prices
in
active
markets
for
identical
financial
instruments
Level
2
–
other
significant
observable
inputs
(including
quoted
prices
for
similar
financial
instruments,
interest
rates,
prepayment
speed,
credit
risk,
etc.)
Level
3
–
significant
unobservable
inputs
(including
the Funds'
own
assumptions
in
determining
the
fair
value
of
financial
instruments)
The
input
levels
are
not
necessarily
an
indication
of
the
risk
or
liquidity
associated
with
financial
instruments
at
that
level.
At
August
31,
2020,
all
of
the
Funds'
investments
in
financial
instruments
carried
at
fair
value
were
valued
using
Level
2
inputs.
12.
New
Accounting
Pronouncements
In
March
2020,
the
Financial
Accounting
Standards
Board
(FASB)
issued
Accounting
Standards
Update
(ASU)
No.
2020-
04,
Reference
Rate
Reform
(Topic
848)
–
Facilitation
of
the
Effects
of
Reference
Rate
Reform
on
Financial
Reporting.
The
amendments
in
the
ASU
provides
optional
temporary
financial
reporting
relief
from
the
effect
of
certain
types
of
contract
modifications
due
to
the
planned
discontinuation
of
the
London
Interbank
Offered
Rate
(LIBOR)
and
other
interbank-offered
based
reference
rates
as
of
the
end
of
2021.
The
ASU
is
effective
for
certain
reference
rate-related
contract
modifications
that
occur
during
the
period
March
12,
2020
through
December
31,
2022.
Management
has
reviewed
the
requirements
and
believes
the
adoption
of
this
ASU
will
not
have
a
material
impact
on
the
financial
statements. 
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.
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
(unaudited)
159
franklintempleton.com
Semiannual
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
FGIC
Financial
Guaranty
Insurance
Co..
FHA
Federal
Housing
Administration
FRN
Floating
Rate
Note
GNMA
Government
National
Mortgage
Association
GO
General
Obligation
LOC
Letter
of
Credit
NATL
National
Reinsurance
Corp.
SPA
Standby
Purchase
Agreement
Franklin
Tax-Free
Trust
Shareholder
Information
160
franklintempleton.com
Semiannual
Report
Liquidity
Risk
Management
Program
Each
of
the
Funds
has
adopted
and
implemented
a
written
Liquidity
Risk
Management
Program
(the
“LRMP”)
as
required
by
Rule
22e-4
under
the
Investment
Company
Act
of
1940
(the
“Liquidity
Rule”).
The
LRMP
is
designed
to
assess
and
manage
each
Fund’s
liquidity
risk,
which
is
defined
as
the
risk
that
the
Fund
could
not
meet
requests
to
redeem
shares
issued
by
the
Fund
without
significant
dilution
of
remaining
investors’
interests
in
the
Fund.
In
accordance
with
the
Liquidity
Rule,
the
LRMP
includes
policies
and
procedures
that
provide
for:
(1)
assessment,
management,
and
review
(no
less
frequently
than
annually)
of
each
Fund’s
liquidity
risk;
(2)
classification
of
each
Fund’s
portfolio
holdings
into
one
of
four
liquidity
categories
(Highly
Liquid,
Moderately
Liquid,
Less
Liquid,
and
Illiquid);
(3)
for
Funds
that
do
not
primarily
hold
assets
that
are
Highly
Liquid,
establishing
and
maintaining
a
minimum
percentage
of
the
Fund’s
net
assets
in
Highly
Liquid
investments
(called
a
“Highly
Liquid
Investment
Minimum”
or
“HLIM”);
and
(4)
prohibiting
the
Fund’s
acquisition
of
Illiquid
investments
that
would
result
in
the
Fund
holding
more
than
15%
of
its
net
assets
in
Illiquid
assets.
The
LRMP
also
requires
reporting
to
the
SEC
(on
a
non-public
basis)
and
to
the
Board
if
the
Fund’s
holdings
of
Illiquid
assets
exceed
15%
of
the
Fund’s
net
assets.
Funds
with
HLIMs
must
have
procedures
for
addressing
HLIM
shortfalls,
including
reporting
to
the
Board
and,
with
respect
to
HLIM
shortfalls
lasting
more
than
seven
consecutive
calendar
days,
reporting
to
the
Securities
and
Exchange
Commission
(“SEC”)
(on
a
non-public
basis).
The
Funds’
Board
of
Trustees
approved
the
appointment
of
the
Director
of
Liquidity
Risk
within
the
Investment
Risk
Management
Group
(the
“IRMG”)
as
the
Administrator
of
the
LRMP.
The
IRMG
maintains
the
Investment
Liquidity
Committee
(the
“ILC”)
to
provide
oversight
and
administration
of
policies
and
procedures
governing
liquidity
risk
management
for
FT
products
and
portfolios.
The
ILC
includes
representatives
from
Franklin
Templeton’s
Risk,
Trading,
Global
Compliance,
Investment
Compliance,
Investment
Operations,
Valuation
Committee
and
Product
Management
groups.
In
assessing
and
managing
each
Fund’s
liquidity
risk,
the
ILC
considers,
as
relevant,
a
variety
of
factors,
including
the
Fund’s
investment
strategy
and
the
liquidity
of
its
portfolio
investments
during
both
normal
and
reasonably
foreseeable
stressed
conditions;
its
short
and
long-term
cash
flow
projections;
and
its
cash
holdings
and
access
to
other
funding
sources
including
the
Funds’
interfund
lending
facility
and
line
of
credit.
Classification
of
the
Fund’s
portfolio
holdings
in
the
four
liquidity
categories
is
based
on
the
number
of
days
it
is
reasonably
expected
to
take
to
convert
the
investment
to
cash
(for
Highly
Liquid
and
Moderately
Liquid
holdings)
or
sell
or
dispose
of
the
investment
(for
Less
Liquid
and
Illiquid
investments),
in
current
market
conditions
without
significantly
changing
the
investment’s
market
value.
The
Fund
primarily
holds
liquid
assets
that
are
defined
under
the
Liquidity
Rule
as
"Highly
Liquid
Investments,"
and
therefore
is
not
required
to
establish
an
HLIM.
Highly
Liquid
Investments
are
defined
as
cash
and
any
investment
reasonably
expected
to
be
convertible
to
cash
in
current
market
conditions
in
three
business
days
or
less
without
the
conversion
to
cash
significantly
changing
the
market
value
of
the
investment.
At
meetings
of
the
Funds’
Board
of
Trustees
held
in
May
2020,
the
Program
Administrator
provided
a
written
report
to
the
Board
addressing
the
adequacy
and
effectiveness
of
the
program
during
the
period
December
1,
2018
to
December
31,
2019.
The
Program
Administrator
report
concluded
that
(i.)
the
LRMP,
as
adopted
and
implemented,
remains
reasonably
designed
to
assess
and
manage
each
Fund’s
liquidity
risk;
(ii.)
the
LRMP,
including
the
Highly
Liquid
Investment
Minimum
(“HLIM”)
where
applicable,
was
implemented
and
operated
effectively
to
achieve
the
goal
of
assessing
and
managing
each
Fund’s
liquidity
risk;
and
(iii.)
each
Fund
was
able
to
meet
requests
for
redemption
without
significant
dilution
of
remaining
investors’
interests
in
the
Fund.
At
the
same
time,
the
Program
Administrator
also
presented
the
Fund
Board
of
Trustees
an
update
on
liquidity
during
the
first
quarter
of
2020
in
relation
to
the
COVID-19
pandemic.
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
Franklin
Tax-Free
Trust
Shareholder
Information
161
franklintempleton.com
Semiannual
Report
proxy
voting
records
are
also
made
available
online
at
franklintempleton.com
and
posted
on
the
U.S.
Securities
and
Exchange
Commission’s
website
at
sec.gov
and
reflect
the
most
recent
12-month
period
ended
June
30.
Quarterly
Statement
of
Investments
The
Trust
files
a
complete
statement
of
investments
with
the
U.S.
Securities
and
Exchange
Commission
for
the
first
and
third
quarters
for
each
fiscal
year
as
an
exhibit
to
its
report
on
Form
N-PORT.
Shareholders
may
view
the
filed
Form
N-PORT
by
visiting
the
Commission’s
website
at
sec.
gov.
The
filed
form
may
also
be
viewed
and
copied
at
the
Commission’s
Public
Reference
Room
in
Washington,
DC.
Information
regarding
the
operations
of
the
Public
Reference
Room
may
be
obtained
by
calling
(800)
SEC-0330.
Householding
of
Reports
and
Prospectuses
You
will
receive
each
Fund’s
financial
reports
every
six
months
as
well
as
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
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
S
10/20
©
2020
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.
Semiannual
Report
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Letter
Franklin
Tax-Free
Trust
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Advisors,
Inc.
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Templeton
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BEN
®
/
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Trust
August
31,
2020
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:
Effective
January
1,
2021,
as
permitted
by
the
SEC,
paper
copies
of
the
Fund’s
shareholder
reports
will
no
longer
be
sent
by
mail,
unless
you
specifically
request
them
from
the
Fund
or
your
financial
intermediary.
Instead,
the
reports
will
be
made
available
on
a
website,
and
you
will
be
notified
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is
posted
and
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1
SHAREHOLDER
LETTER
Dear
Shareholder:
During
the
six
months
ended
August
31,
2020,
the
U.S.
economy
contracted
in
2020’s
first
and
second
quarters
in
response
to
the
novel
coronavirus
(COVID-19)
pandemic.
The
U.S.
Federal
Reserve
(Fed),
having
lowered
the
federal
funds
rate
three
times
in
2019
amid
global
trade
tensions,
held
the
rate
unchanged
through
February
2020.
However,
given
larger
economic
risks
posed
by
COVID-19,
the
Fed
lowered
its
key
rate
by
0.50%
on
March
3
and
further
by
1.00%
on
March
15,
decreasing
the
rate
during
the
period
from
1.75%
to
0.25%.
In
its
efforts
to
support
U.S.
economic
activity,
the
Fed
also
announced
broad
quantitative
easing
measures
to
support
credit
markets.
During
the
six-month
period,
municipal
bonds
delivered
marginally
positive
total
returns
as
investors
were
attracted
to
tax-free
income
in
a
declining
interest-rate
environment.
Factors
contributing
to
this
positive
investment
environment
for
municipals
included
relatively
low
inflation,
interest-
rate
declines
and
recent
actions
by
the
Fed
to
support
the
municipal
bond
market.
On
July
1,
2020,
we
appointed
Ben
Barber
as
senior
vice
president
and
director
of
our
municipal
bond
department,
and
we
are
pleased
that
he
has
rejoined
Franklin.
Ben
most
recently
served
as
co-head
of
municipal
bonds
at
Goldman
Sachs
Asset
Management.
Ben
started
his
career
of
over
28
years
of
municipal
bond
investing
at
Franklin
in
1991,
working
with
several
current
investment
team
members
through
1999,
when
he
joined
Goldman
Sachs.
Franklin
Tax-Free
Trust’s
semiannual
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
experts.
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,
as
do
mutual
fund
share
prices.
As
always,
we
recommend
investors
consult
their
financial
advisors
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
advisor
when
you
have
questions
about
your
Franklin
tax-free
investment.
Sincerely,
Rupert
H.
Johnson,
Jr.
Chairman
Franklin
Tax-Free
Trust
Ben
Barber
Senior
Vice
President
Director
of
Municipal
Bonds
This
letter
reflects
our
analysis
and
opinions
as
of
August
31,
2020,
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.
franklintempleton.com
Semiannual
Report
2
Contents
Semiannual
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
............
10
Franklin
Connecticut
Tax-Free
Income
Fund
..........
15
Franklin
Michigan
Tax-Free
Income
Fund
............
20
Franklin
Minnesota
Tax-Free
Income
Fund
...........
25
Franklin
Ohio
Tax-Free
Income
Fund
................
30
Franklin
Oregon
Tax-Free
Income
Fund
..............
35
Franklin
Pennsylvania
Tax-Free
Income
Fund
.........
40
Financial
Highlights
and
Statements
of
Investments
...
45
Financial
Statements
.............................
129
Notes
to
Financial
Statements
.....................
139
Shareholder
Information
..........................
156
Visit
franklintempleton.com
for
fund
updates,
to
access
your
account,
or
to
find
helpful
financial
planning
tools.
3
franklintempleton.com
Semiannual
Report
SEMIANNUAL
REPORT
Municipal
Bond
Market
Overview
Beginning
in
March
2020,
the
global
spread
of
the
novel
coronavirus
and
the
drastic
measures
individual
countries
implemented
to
limit
infections
shocked
both
equity
and
fixed
income
markets.
Investors
sought
perceived
safe
havens,
driving
U.S.
Treasury
(UST)
yields
lower
and
causing
a
surge
in
volatility.
In
the
municipal
bond
market,
sellers
significantly
outnumbered
buyers,
resulting
in
market
dislocations.
March
2020
saw
outflows
of
$42
billion
from
municipal
bond
funds,
reversing
half
of
the
inflows
seen
throughout
2019.
Ratios
of
municipal
bond
yields
versus
duration-matched
USTs
cheapened
across
all
maturity
buckets,
surpassing
levels
reached
during
the
global
financial
crisis.
Municipal
bond
issues
closely
related
to
the
impact
of
the
virus,
including
states
like
New
York
and
New
Jersey
and
sectors
like
transportation,
retreated
more
than
other
parts
of
the
market.
In
March,
the
U.S.
Federal
Reserve
announced
it
would
begin
purchasing
municipal
bonds
as
needed
to
support
market
stability;
however,
there
were
still
significant
dislocations
within
the
secondary
bond
market
at
month-end,
and
new
issuance
had
all
but
stopped.
Moving
into
April
and
continuing
through
August,
municipal
bond
market
technical
conditions
improved
as
funds
flowed
into
the
market
and
were
met
with
negative
net
supply
of
tax-exempt
bonds.
Ratios
of
municipal
bonds
versus
USTs
tightened
but
remained
significantly
wider
than
at
the
beginning
of
2020.
Throughout
the
sector,
municipal
issuers
projected
large
deficits
reaching
into
2021
as
revenues
from
tax
receipts
and
usage
fees
fall
while
costs
of
services
increase.
The
Investment
Company
Institute
(ICI)
reported
net
inflows
of
approximately
$11
billion
into
municipal
bond
mutual
funds
in
August
2020.
Since
March,
over
half
of
the
record
outflows
in
March,
$42
billion,
had
returned
to
the
sector.
For
the
six-month
period,
municipal
bond
mutual
funds
had
approximately
$9
billion
of
net
outflows,
according
to
the
ICI.
For
the
six-month
period,
investment-grade
municipal
bonds,
as
measured
by
the
Bloomberg
Barclays
Municipal
Bond
Index,
posted
a
+0.19%
total
return,
while
USTs,
as
measured
by
the
Bloomberg
Barclays
U.S.
Treasury
Index,
posted
a
+3.42%
total
return,
and
investment-grade
corporate
bonds,
as
measured
by
the
Bloomberg
Barclays
U.S.
Corporate
Bond
Index,
posted
a
+3.11%
total
return.
1
All
three
of
these
fixed
income
sectors
underperformed
U.S.
stocks,
as
measured
by
the
Standard
&
Poor’s®
500
Index,
which
posted
a
+19.63%
total
return
for
the
period.
1
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
August
31,
2020,
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.
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
Semiannual
Report
Investment
Strategy
and
Manager’s
Discussion
Investment
Strategy
We
use
a
consistent,
disciplined
strategy
with
the
objective
of
maximizing
tax-free
income
and
capital
preservation
by
focusing
on
credit
selection.
We
seek
to
maintain
exposure
to
securities
that
produce
high
tax-free
income,
while
balancing
risk
and
return
within
each
Fund’s
range
of
allowable
investments.
We
do
not
purchase
high-yield
securities
in
our
investment-grade
funds,
however
if
a
security
is
downgraded
we
are
not
required
to
sell
it.
Our
security
selection
process
includes
purchasing
securities
that
we
believe
are
undervalued
in
the
market
and
which
have
met
our
credit
selection
criteria.
We
do
not
use
leverage
or
derivatives,
which
could
add
volatility
and
contribute
to
underperformance
in
adverse
markets.
Manager’s
Discussion
Due
to
the
positive
sloping
municipal
yield
curve,
we
found
value
in
higher
quality
securities
in
the
15–30
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
August
31,
2020,
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
Semiannual
Report
Franklin
Arizona
Tax-Free
Income
Fund
This
semiannual
report
for
Franklin
Arizona
Tax-Free
Income
Fund
covers
the
period
ended
August
31,
2020
.
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
to
provide
as
high
a
level
of
income
exempt
from
federal
and
Arizona
personal
income
taxes
as
is
consistent
with
prudent
investment
management
and
preservation
of
capital
by
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
$11.24
on
February
29,
2020,
to
$11.00
on
August
31,
2020.
The
Fund’s
Class
A
shares
paid
dividends
totaling
14.0726
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
2.43%,
based
on
an
annualization
of
August’s
2.3124
cents
per
share
dividend
and
the
maximum
offering
price
of
$11.43
on
August
31,
2020.
An
investor
in
the
2020
maximum
combined
effective
federal
and
Arizona
personal
income
tax
bracket
of
45.30%
(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
During
the
six
months
under
review,
Arizona’s
economy
declined
due
to
the
impact
of
the
COVID-19
pandemic.
The
state’s
economy
was
particularly
vulnerable
to
the
resulting
economic
shock
due
to
its
significant
employment
in
leisure
and
hospitality,
services
and
construction.
The
effects
of
the
pandemic
on
Arizona’s
employment
so
far
have
been
slightly
less
severe
relative
to
the
nation
due
to
Arizona’s
more
relaxed
containment
measures.
The
state’s
unemployment
rate
rose
from
4.5%
to
5.9%
at
period-end,
below
the
nation’s
8.4%
average.
3
Arizona’s
Joint
Legislative
Budget
Committee
correctly
projected
a
deficit
in
the
general
fund
for
fiscal
year
(FY)
2020,
and
general
fund
reserves
Credit
Quality
Composition
*
8/31/20
Ratings
%
of
Total
Investments
AAA
5.75%
AA
55.09%
A
25.12%
BBB
7.01%
Below
Investment
Grade
0.82%
Refunded
5.01%
Not
Rated
1.20%
*Securities,
except
for
those
labeled
Not
Rated,
are
assigned
ratings
by
one
or
more
Nationally
Recognized
Statistical
Credit
Rating
Organizations
(NRSROs),
such
as
Standard
&
Poor’s,
Moody’s
and
Fitch,
that
can
be
considered
by
the
investment
man-
ager
as
part
of
its
independent
securities
analysis.
When
ratings
from
multiple
agen-
cies
are
available,
the
highest
is
used,
consistent
with
the
portfolio
investment
process.
Ratings
reflect
an
NRSRO’s
opinion
of
an
issuer’s
creditworthiness
and
typically
range
from
AAA
(highest)
to
D
(lowest).
The
Below
Investment
Grade
category
consists
of
bonds
rated
below
BBB-.
The
Refunded
category
generally
consists
of
refunded
bonds
secured
by
U.S.
government
or
other
high-quality
securities
and
not
rerated
by
an
NRSRO.
The
Not
Rated
category
consists
of
ratable
securities
that
have
not
been
rated
by
an
NRSRO.
Cash
and
equivalents
are
excluded
from
this
composition.
Portfolio
Composition
8/31/20
%
of
Total
Investments
*
Utilities
25.72%
Hospital
&
Health
Care
15.87%
Higher
Education
14.34%
Tax-Supported
10.68%
Transportation
9.40%
Refunded**
7.49%
Other
Revenue
5.42%
Housing
5.08%
General
Obligation
3.77%
Subject
to
Government
Appropriations
2.23%
*
Does
not
include
cash
and
cash
equivalents.
**
Includes
all
refunded
bonds;
the
percentage
may
differ
from
that
in
the
Credit
Quality
Composition.
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
estimated
tax-basis
net
investment
income
distributions
for
the
period
shown.
A
portion
or
all
of
the
distribution
may
be
reclassified
as
return
of
capital
or
short-term
or
long-term
capital
gains
once
final
tax
designations
are
known.
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:
Bureau
of
Labor
Statistics.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Statement
of
Investments
(SOI).
The
SOI
begins
on
page
50
.
Franklin
Arizona
Tax-Free
Income
Fund
6
franklintempleton.com
Semiannual
Report
were
used
to
close
the
gap.
The
state
addressed
a
projected
FY
2021
deficit
with
an
emergency
budget
in
March
2020
that
limited
most
new
spending
to
inflation
adjustments
and
teacher
raises.
Arizona’s
net
tax-supported
debt
was
$508
per
capita
and
1.1%
of
personal
income,
below
the
$1,071
and
2.0%
national
medians,
respectively.
4
The
independent
credit
rating
agency
Moody’s
Investor
Service
(Moody’s)
maintained
the
state’s
issuer
credit
Aa1
rating
with
a
stable
outlook.
5
The
rating
reflected
Moody’s
view
of
Arizona’s
general
credit
position
as
well
as
its
below
average
pension
liabilities
and
demonstrated
budget
discipline.
Manager’s
Discussion
We
used
various
investment
strategies
during
the
six
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
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
August
31,
2020,
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.
4.
Source:
Moody’s
Investors
Service,
State
government
–
US:
Medians
–
State
debt
declined
in
2019,
but
likely
to
grow
in
coming
years
,
5/12/20.
5.
This
does
not
indicate
Moody’s
rating
of
the
Fund.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Performance
Summary
as
of
August
31,
2020
Franklin
Arizona
Tax-Free
Income
Fund
7
franklintempleton.com
Semiannual
Report
The
performance
tables
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
8/31/20
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
3.75%
and
the
minimum
is
0%.
Class
A:
3.75%
maximum
initial
sales
charge;
Advisor
Class:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com
.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Share
Class
Cumulative
Total
Return
1
Average
Annual
Total
Return
2
–
A
3,4
6-Month
-0.86%
-4.58%
1-Year
+1.97%
-1.85%
5-Year
+18.22%
+2.62%
10-Year
+42.45%
+3.21%
Advisor
6-Month
-0.82%
-0.82%
1-Year
+2.13%
+2.13%
5-Year
+18.93%
+3.53%
10-Year
+43.97%
+3.71%
Share
Class
Distribution
Rate
5
Taxable
Equivalent
Distribution
Rate
6
30-Day
Standardized
Yield
7
Taxable
Equivalent
30-Day
Standardized
Yield
8
A
2.43%
4.44%
1.17%
2.14%
Advisor
2.78%
5.08%
1.46%
2.67%
See
page
8
for
Performance
Summary
footnotes.
Franklin
Arizona
Tax-Free
Income
Fund
Performance
Summary
8
franklintempleton.com
Semiannual
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.
Unexpected
events
and
their
aftermaths,
such
as
the
spread
of
deadly
diseases;
natural,
environmental
or
man-made
disasters;
financial,
political
or
social
disruptions;
terrorism
and
war;
and
other
tragedies
or
catastrophes,
can
cause
investor
fear
and
panic,
which
can
adversely
affect
the
economies
of
many
companies,
sectors,
nations,
regions
and
the
market
in
general,
in
ways
that
cannot
necessarily
be
foreseen.
The
Fund’s
prospectus
also
includes
a
description
of
the
main
investment
risks.
1.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
2.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
3.
Effective
9/10/18,
Class
A
shares
closed
to
new
investors,
were
renamed
Class
A1
shares,
and
a
new
Class
A
share
with
a
different
expense
structure
became
available.
Class
A
performance
shown
has
been
calculated
as
follows:
(a)
for
periods
prior
to
9/10/18,
a
restated
figure
is
used
based
on
the
Fund’s
Class
A1
performance
that
includes
any
Rule
12b-1
rate
differential
that
exists
between
Class
A1
and
Class
A;
and
(b)
for
periods
after
9/10/18,
actual
Class
A
performance
is
used,
reflecting
all
charges
and
fees
applicable
to
that
class.
4.
Prior
to
3/1/19,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
4.25%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total\
returns
(with
sales
charges)
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
3.75%.
5.
Distribution
rate
is
based
on
an
annualization
of
the
respective
class’s
August
dividend
and
the
maximum
offering
price
(NAV
for
Advisor
class)
per
share
on
8/31/20.
6.
Taxable
equivalent
distribution
rate
and
yield
assume
the
published
rates
as
of
6/18/20
for
the
maximum
combined
effective
federal
and
Arizona
personal
income
tax
rate
of
45.30%,
based
on
the
federal
income
tax
rate
of
37.00%
plus
3.80%
Medicare
tax.
7.
The
Fund’s
30-day
standardized
yield
is
calculated
over
a
trailing
30-day
period
using
the
yield
to
maturity
on
bonds
and/or
the
dividends
accrued
on
stocks.
It
may
not
equal
the
Fund’s
actual
income
distribution
rate,
which
reflects
the
Fund’s
past
dividends
paid
to
shareholders.
8.
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
(3/1/20–8/31/20)
Share
Class
Net
Investment
Income
A
$0.140726
A1
$0.148934
C
$0.118971
R6
$0.156365
Advisor
$0.154583
Total
Annual
Operating
Expenses
8
Share
Class
A
0.81%
Advisor
0.56%
Your
Fund’s
Expenses
Franklin
Arizona
Tax-Free
Income
Fund
9
franklintempleton.com
Semiannual
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
184/365
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
3/1/20
Ending
Account
Value
8/31/20
Expenses
Paid
During
Period
3/1/20–8/31/20
1,2
Ending
Account
Value
8/31/20
Expenses
Paid
During
Period
3/1/20–8/31/20
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$991.40
$4.05
$1,021.14
$4.11
0.81%
A1
$1,000
$992.10
$3.31
$1,021.88
$3.36
0.66%
C
$1,000
$989.60
$6.04
$1,019.14
$6.13
1.21%
R6
$1,000
$991.90
$2.63
$1,022.56
$2.68
0.53
%
Advisor
$1,000
$991.80
$2.81
$1,022.39
$2.85
0.56%
10
franklintempleton.com
Semiannual
Report
Franklin
Colorado
Tax-Free
Income
Fund
This
semiannual
report
for
Franklin
Colorado
Tax-Free
Income
Fund
covers
the
period
ended
August
31,
2020
.
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
to
provide
as
high
a
level
of
income
exempt
from
federal
and
Colorado
personal
income
taxes
as
is
consistent
with
prudent
investment
management
and
preservation
of
capital
by
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
$11.96
on
February
29,
2020,
to
$11.78
on
August
31,
2020.
The
Fund’s
Class
A
shares
paid
dividends
totaling
14.4621
cents
per
share
for
the
reporting
period.
2
The
Performance
Summary
beginning
on
page
12
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
August’s
2.4172
cents
per
share
dividend
and
the
maximum
offering
price
of
$12.24
on
August
31,
2020.
An
investor
in
the
2020
maximum
combined
effective
federal
and
Colorado
personal
income
tax
bracket
of
45.43%
(including
3.80%
Medicare
tax)
would
need
to
earn
a
distribution
rate
of
4.34%
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
six
months
under
review,
Colorado’s
economy
deteriorated
resulting
from
the
COVID-19
pandemic.
The
state’s
economy
performed
strongly
leading
up
to
the
current
crisis,
driven
by
a
diverse
mix
of
industries
and
the
influx
of
a
young,
educated
workforce,
but
contracted
sharply
in
recent
months.
Colorado’s
unemployment
rate
rose
from
2.5%
in
February
2020
to
6.7%
at
period-end,
below
the
nation’s
8.4%
average.
3
The
state
faced
a
significant
shortfall
in
fiscal
year
(FY)
2020
tax
revenues
and
addressed
the
forecast
FY
2021
revenue
shortfalls
with
expenditure
cuts,
one
time
transfers
and
a
drawdown
of
reserves.
Colorado
has
a
complex
system
of
constitutional
revenue
limits
and
spending
requirements.
Its
net
tax-supported
debt
was
$603
Credit
Quality
Composition
*
8/31/20
Ratings
%
of
Total
Investments
AAA
3.74%
AA
55.04%
A
19.23%
BBB
10.34%
Refunded
9.84%
Not
Rated
1.81%
*Securities,
except
for
those
labeled
Not
Rated,
are
assigned
ratings
by
one
or
more
Nationally
Recognized
Statistical
Credit
Rating
Organizations
(NRSROs),
such
as
Standard
&
Poor’s,
Moody’s
and
Fitch,
that
can
be
considered
by
the
investment
man-
ager
as
part
of
its
independent
securities
analysis.
When
ratings
from
multiple
agen-
cies
are
available,
the
highest
is
used,
consistent
with
the
portfolio
investment
process.
Ratings
reflect
an
NRSRO’s
opinion
of
an
issuer’s
creditworthiness
and
typically
range
from
AAA
(highest)
to
D
(lowest).
The
Below
Investment
Grade
category
consists
of
bonds
rated
below
BBB-.
The
Refunded
category
generally
consists
of
refunded
bonds
secured
by
U.S.
government
or
other
high-quality
securities
and
not
rerated
by
an
NRSRO.
The
Not
Rated
category
consists
of
ratable
securities
that
have
not
been
rated
by
an
NRSRO.
Cash
and
equivalents
are
excluded
from
this
composition.
Portfolio
Composition
8/31/20
%
of
Total
Investments
*
Utilities
19.57%
Hospital
&
Health
Care
15.90%
Tax-Supported
14.29%
Refunded**
13.19%
General
Obligation
12.70%
Higher
Education
10.50%
Subject
to
Government
Appropriations
5.69%
Transportation
5.28%
Other
Revenue
2.58%
Housing
0.30%
*
Does
not
include
cash
and
cash
equivalents.
**
Includes
all
refunded
bonds;
the
percentage
may
differ
from
that
in
the
Credit
Quality
Composition.
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
estimated
tax-basis
net
investment
income
distributions
for
the
period
shown.
A
portion
or
all
of
the
distribution
may
be
reclassified
as
return
of
capital
or
short-term
or
long-term
capital
gains
once
final
tax
designations
are
known.
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:
Bureau
of
Labor
Statistics
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Statement
of
Investments
(SOI).
The
SOI
begins
on
page
60
.
Franklin
Colorado
Tax-Free
Income
Fund
11
franklintempleton.com
Semiannual
Report
per
capita
and
1.0%
of
personal
income,
below
the
$1,071
and
2.0%
national
medians,
respectively.
4
The
independent
credit
rating
agency
Moody’s
Investor
Service
(Moody’s)
maintained
Colorado’s
issuer
credit
Aa1
rating
with
a
stable
outlook.
5
The
rating
reflected
the
state’s
strong
economic
fundamentals,
timely
action
to
address
the
near-term
revenue
shortfalls
and
low
debt
ratios,
which
should
remain
below
average.
The
stable
outlook
reflects
Colorado’s
conservative
financial
practices,
a
strong
state
economy
and
what
is
expected
to
be
a
better-than-average
recovery
from
the
current
slowdown.
Manager’s
Discussion
We
used
various
investment
strategies
during
the
six
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
August
31,
2020,
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.
4.
Source:
Moody’s
Investors
Service,
State
government
–
US:
Medians
–
State
debt
declined
in
2019,
but
likely
to
grow
in
coming
years
,
5/12/20.
5.
This
does
not
reflect
Moody’s
rating
of
the
Fund.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Performance
Summary
as
of
August
31,
2020
Franklin
Colorado
Tax-Free
Income
Fund
12
franklintempleton.com
Semiannual
Report
The
performance
tables
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
8/31/20
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
3.75%
and
the
minimum
is
0%.
Class
A
:
3.75%
maximum
initial
sales
charge;
Advisor
Class:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Share
Class
Cumulative
Total
Return
1
Average
Annual
Total
Return
2
–
A
3,4
6-Month
-0.28%
-4.02%
1-Year
+2.30%
-1.54%
5-Year
+17.31%
+2.46%
10-Year
+41.06%
+3.11%
Advisor
6-Month
-0.23%
-0.23%
1-Year
+2.55%
+2.55%
5-Year
+18.16%
+3.39%
10-Year
+42.68%
+3.62%
Share
Class
Distribution
Rate
5
Taxable
Equivalent
Distribution
Rate
6
30-Day
Standardized
Yield
7
Taxable
Equivalent
30-Day
Standardized
Yield
6
A
2.37%
4.34%
1.30%
2.38%
Advisor
2.72%
4.98%
1.61%
2.95%
See
page
13
for
Performance
Summary
footnotes.
Franklin
Colorado
Tax-Free
Income
Fund
Performance
Summary
13
franklintempleton.com
Semiannual
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.
Unexpected
events
and
their
aftermaths,
such
as
the
spread
of
deadly
diseases;
natural,
environmental
or
man-made
disasters;
financial,
political
or
social
disruptions;
terrorism
and
war;
and
other
tragedies
or
catastrophes,
can
cause
investor
fear
and
panic,
which
can
adversely
affect
the
economies
of
many
companies,
sectors,
nations,
regions
and
the
market
in
general,
in
ways
that
cannot
necessarily
be
foreseen.
The
Fund’s
prospectus
also
includes
a
description
of
the
main
investment
risks.
1.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
2.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
3.
Effective
9/10/18,
Class
A
shares
closed
to
new
investors,
were
renamed
Class
A1
shares,
and
a
new
Class
A
share
with
a
different
expense
structure
became
available.
Class
A
performance
shown
has
been
calculated
as
follows:
(a)
for
periods
prior
to
9/10/18,
a
restated
figure
is
used
based
on
the
Fund’s
Class
A1
performance
that
includes
any
Rule
12b-1
rate
differential
that
exists
between
Class
A1
and
Class
A;
and
(b)
for
periods
after
9/10/18,
actual
Class
A
performance
is
used,
reflecting
all
charges
and
fees
applicable
to
that
class.
4.
Prior
to
3/1/19,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
4.25%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total
returns
(with
sales
charges)
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
3.75%.
5.
Distribution
rate
is
based
on
an
annualization
of
the
respective
class’s
August
dividend
and
the
maximum
offering
price
(NAV
for
Advisor
class)
per
share
on
8/31/20.
6.
Taxable
equivalent
distribution
rate
and
yield
assume
the
published
rates
as
of
6/18/20
for
the
maximum
combined
effective
federal
and
Colorado
personal
income
tax
rate
of
45.43%,
based
on
the
federal
income
tax
rate
of
37.00%
plus
3.80%
Medicare
tax.
7.
The
Fund’s
30-day
standardized
yield
is
calculated
over
a
trailing
30-day
period
using
the
yield
to
maturity
on
bonds
and/or
the
dividends
accrued
on
stocks.
It
may
not
equal
the
Fund’s
actual
income
distribution
rate,
which
reflects
the
Fund’s
past
dividends
paid
to
shareholders.
8.
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
(3/1/20–8/31/20)
Share
Class
Net
Investment
Income
A
$0.144621
A1
$0.153476
C
$0.121262
R6
$0.161658
Advisor
$0.159371
Total
Annual
Operating
Expenses
8
Share
Class
A
0.84%
Advisor
0.59%
Your
Fund’s
Expenses
Franklin
Colorado
Tax-Free
Income
Fund
14
franklintempleton.com
Semiannual
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
184/365
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
3/1/20
Ending
Account
Value
8/31/20
Expenses
Paid
During
Period
3/1/20–8/31/20
1,2
Ending
Account
Value
8/31/20
Expenses
Paid
During
Period
3/1/20–8/31/20
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$997.20
$4.16
$1,021.04
$4.21
0.83%
A1
$1,000
$997.20
$3.41
$1,021.79
$3.46
0.68%
C
$1,000
$994.50
$6.16
$1,019.03
$6.23
1.23%
R6
$1,000
$997.90
$2.72
$1,022.48
$2.75
0.54%
Advisor
$1,000
$997.70
$2.91
$1,022.29
$2.95
0.58%
15
franklintempleton.com
Semiannual
Report
Franklin
Connecticut
Tax-Free
Income
Fund
This
semiannual
report
for
Franklin
Connecticut
Tax-Free
Income
Fund
covers
the
period
ended
August
31,
2020
.
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
to
provide
as
high
a
level
of
income
exempt
from
federal
and
Connecticut
personal
income
taxes
as
is
consistent
with
prudent
investment
management
and
preservation
of
capital
by
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
$10.39
on
February
29,
2020,
to
$10.24
on
August
31,
2020.
The
Fund’s
Class
A
shares
paid
dividends
totaling
13.6696
cents
per
share
for
the
reporting
period.
2
The
Performance
Summary
beginning
on
page
17
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
August’s
2.2941
cents
per
share
dividend
and
the
maximum
offering
price
of
$10.64
on
August
31,
2020.
An
investor
in
the
2020
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
4.96%
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
six
months
under
review,
Connecticut’s
economy
weakened
resulting
from
the
COVID-19
pandemic.
The
wealthiest
state
in
the
nation,
with
a
large
and
diverse
economy,
Connecticut
has
been
challenged
by
a
deteriorating
economic
and
demographic
trajectory,
exacerbated
by
the
pandemic.
Connecticut’s
unemployment
rate
rose
from
3.8%
in
February
2020
to
8.1%
at
period
end,
slightly
below
that
nation’s
8.4%
average.
3
The
state
used
reserves
to
balance
its
fiscal
year
(FY)
2020
deficit,
and
will
address
the
forecast
deficit
for
FY
2021
with
a
combination
of
revenue
changes
and
other
expenditure
adjustments,
and
likely
the
use
of
some
reserves.
Connecticut’s
net-tax-
supported
debt
was
$6,637
per
capita
and
8.4%
of
personal
income,
above
the
$1,071
and
2.0%
national
medians,
respectively.
4
The
independent
credit
rating
agency
Moody’s
Credit
Quality
Composition
*
8/31/20
Ratings
%
of
Total
Investments
AAA
10.50%
AA
19.85%
A
50.13%
BBB
5.11%
Refunded
14.41%
*Securities,
except
for
those
labeled
Not
Rated,
are
assigned
ratings
by
one
or
more
Nationally
Recognized
Statistical
Credit
Rating
Organizations
(NRSROs),
such
as
Standard
&
Poor’s,
Moody’s
and
Fitch,
that
can
be
considered
by
the
investment
man-
ager
as
part
of
its
independent
securities
analysis.
When
ratings
from
multiple
agen-
cies
are
available,
the
highest
is
used,
consistent
with
the
portfolio
investment
process.
Ratings
reflect
an
NRSRO’s
opinion
of
an
issuer’s
creditworthiness
and
typically
range
from
AAA
(highest)
to
D
(lowest).
The
Below
Investment
Grade
category
consists
of
bonds
rated
below
BBB-.
The
Refunded
category
generally
consists
of
refunded
bonds
secured
by
U.S.
government
or
other
high-quality
securities
and
not
rerated
by
an
NRSRO.
The
Not
Rated
category
consists
of
ratable
securities
that
have
not
been
rated
by
an
NRSRO.
Cash
and
equivalents
are
excluded
from
this
composition.
Portfolio
Composition
8/31/20
%
of
Total
Investments
*
Higher
Education
26.08%
Refunded**
24.38%
Hospital
&
Health
Care
15.09%
Utilities
14.00%
General
Obligation
5.95%
Housing
5.89%
Transportation
5.39%
Other
Revenue
3.22%
*
Does
not
include
cash
and
cash
equivalents.
**
Includes
all
refunded
bonds;
the
percentage
may
differ
from
that
in
the
Credit
Quality
Composition.
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
estimated
tax-basis
net
investment
income
distributions
for
the
period
shown.
A
portion
or
all
of
the
distribution
may
be
reclassified
as
return
of
capital
or
short-term
or
long-term
capital
gains
once
final
tax
designations
are
known.
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:
Bureau
of
Labor
Statistics.
4.
Source:
Moody’s
Investors
Service,
State
government
–
US:
Medians
–
State
debt
declined
in
2019,
but
likely
to
grow
in
coming
years
,
5/12/20.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Statement
of
Investments
(SOI).
The
SOI
begins
on
page
70
.
Franklin
Connecticut
Tax-Free
Income
Fund
16
franklintempleton.com
Semiannual
Report
Investor
Service
(Moody’s)
maintained
Connecticut’s
general
obligation
bonds’
A1
rating
with
a
stable
outlook,
reflecting
the
state’s
high
income
levels,
strengthened
governance
and
significantly
improved
liquidity,
offset
by
high
liabilities
and
the
resulting
high
fixed
costs
for
debt
service,
pension,
and
post-employment
benefits.
5
Moody’s
stable
outlook
reflects
Connecticut’s
strong
provisions
to
promote
fiscal
discipline.
Manager’s
Discussion
We
used
various
investment
strategies
during
the
six
months
under
review
as
we
sought
to
maximize
tax-free
income
for
shareholders.
Please
read
the
Investment
Strategy
and
Manager’s
Discussion
on
page
4
for
more
information.
Thank
you
for
your
continued
participation
in
Franklin
Connecticut
Tax-Free
Income
Fund.
We
look
forward
to
serving
your
future
investment
needs.
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
August
31,
2020,
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.
5.
Source:
This
does
not
reflect
Moody’s
rating
of
the
Fund.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Performance
Summary
as
of
August
31,
2020
Franklin
Connecticut
Tax-Free
Income
Fund
17
franklintempleton.com
Semiannual
Report
The
performance
tables
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
8/31/20
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
3.75%
and
the
minimum
is
0%.
Class
A
:
3.75%
maximum
initial
sales
charge;
Advisor
Class:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Share
Class
Cumulative
Total
Return
1
Average
Annual
Total
Return
2
–
A
3,4
6-Month
-0.11%
-3.85%
1-Year
+2.22%
-1.62%
5-Year
+14.02%
+1.88%
10-Year
+29.77%
+2.25%
Advisor
6-Month
+0.12%
+0.12%
1-Year
+2.47%
+2.47%
5-Year
+14.94%
+2.82%
10-Year
+31.31%
+2.76%
Share
Class
Distribution
Rate
5
Taxable
Equivalent
Distribution
Rate
6
30-Day
Standardized
Yield
7
Taxable
Equivalent
30-Day
Standardized
Yield
6
A
2.59%
4.96%
1.41%
2.70%
Advisor
2.94%
5.63%
1.72%
3.29%
See
page
18
for
Performance
Summary
footnotes.
Franklin
Connecticut
Tax-Free
Income
Fund
Performance
Summary
18
franklintempleton.com
Semiannual
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.
Unexpected
events
and
their
aftermaths,
such
as
the
spread
of
deadly
diseases;
natural,
environmental
or
man-made
disasters;
financial,
political
or
social
disruptions;
terrorism
and
war;
and
other
tragedies
or
catastrophes,
can
cause
investor
fear
and
panic,
which
can
adversely
affect
the
economies
of
many
companies,
sectors,
nations,
regions
and
the
market
in
general,
in
ways
that
cannot
necessarily
be
foreseen.
The
Fund’s
prospectus
also
includes
a
description
of
the
main
investment
risks.
1.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
2.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
3.
Effective
9/10/18,
Class
A
shares
closed
to
new
investors,
were
renamed
Class
A1
shares,
and
a
new
Class
A
share
with
a
different
expense
structure
became
available.
Class
A
performance
shown
has
been
calculated
as
follows:
(a)
for
periods
prior
to
9/10/18,
a
restated
figure
is
used
based
on
the
Fund’s
Class
A1
performance
that
includes
any
Rule
12b-1
rate
differential
that
exists
between
Class
A1
and
Class
A;
and
(b)
for
periods
after
9/10/18,
actual
Class
A
performance
is
used,
reflecting
all
charges
and
fees
applicable
to
that
class.
4.
Prior
to
3/1/19,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
4.25%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total\
returns
(with
sales
charges)
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
3.75%.
5.
Distribution
rate
is
based
on
an
annualization
of
the
respective
class’s
August
dividend
and
the
maximum
offering
price
(NAV
for
Advisor
class)
per
share
on
8/31/20.
6.
Taxable
equivalent
distribution
rate
and
yield
assume
the
published
rates
as
of
6/18/20
for
the
maximum
combined
effective
federal
and
Connecticut
personal
income
tax
rate
of
47.79%,
based
on
the
federal
income
tax
rate
of
37.00%
plus
3.80%
Medicare
tax.
7.
The
Fund’s
30-day
standardized
yield
is
calculated
over
a
trailing
30-day
period
using
the
yield
to
maturity
on
bonds
and/or
the
dividends
accrued
on
stocks.
It
may
not
equal
the
Fund’s
actual
income
distribution
rate,
which
reflects
the
Fund’s
past
dividends
paid
to
shareholders.
8.
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
(3/1/20–8/31/20)
Share
Class
Net
Investment
Income
A
$0.136696
A1
$0.144322
C
$0.116290
R6
$0.151587
Advisor
$0.149418
Total
Annual
Operating
Expenses
8
Share
Class
A
0.93%
Advisor
0.68%
Your
Fund’s
Expenses
Franklin
ConnecticutTax-Free
Income
Fund
19
franklintempleton.com
Semiannual
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
184/365
to
reflect
the
one-half
year
period.
2.
Reflects
expenses
after
fee
waivers
and
expense
reimbursements,
for
Cla
ss
R6.
Actual
(actual
return
after
expenses)
Hypothetical
(5%
annual
return
before
expenses)
Share
Class
Beginning
Account
Value
3/1/20
Ending
Account
Value
8/31/20
Expenses
Paid
During
Period
3/1/20–8/31/20
1,2
Ending
Account
Value
8/31/20
Expenses
Paid
During
Period
3/1/20–8/31/20
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$998.90
$4.71
$1,020.50
$4.76
0.94%
A1
$1,000
$999.70
$3.97
$1,021.24
$4.01
0.79%
C
$1,000
$997.90
$6.73
$1,018.47
$6.80
1.34%
R6
$1,000
$1,000.40
$3.25
$1,021.96
$3.28
0.64%
Advisor
$1,000
$1,001.20
$3.47
$1,021.74
$3.50
0.69%
20
franklintempleton.com
Semiannual
Report
Franklin
Michigan
Tax-Free
Income
Fund
This
semiannual
report
for
Franklin
Michigan
Tax-Free
Income
Fund
covers
the
period
ended
August
31,
2020
.
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
to
provide
as
high
a
level
of
income
exempt
from
federal
and
Michigan
personal
income
taxes
as
is
consistent
with
prudent
investment
management
and
preservation
of
capital
by
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
$12.03
on
February
29,
2020,
to
$11.93
on
August
31,
2020.
The
Fund’s
Class
A
shares
paid
dividends
totaling
14.2640
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
2.34%,
based
on
an
annualization
of
August’s
2.4191
cents
per
share
dividend
and
the
maximum
offering
price
of
$12.39
on
August
31,
2020.
An
investor
in
the
2020
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
4.26%
from
a
taxable
investment
to
match
the
Fund’s
Class
A
tax-free
distribution
rate.
For
other
performance
data,
please
see
the
Performance
Summary.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
State
Update
During
the
six
months
under
review,
Michigan’s
economy
weakened.
The
COVID-19
pandemic
had
an
outsized
effect
on
the
state’s
economy
due
to
its
above-average
concentration
in
manufacturing,
particularly
the
auto
industry
and
other
durable
goods.
Michigan’s
unemployment
rate
rose
from
3.6%
in
February
2020
to
8.7%
at
period-end,
slightly
above
the
nation’s
8.4%
average.
3
The
state
expects
to
mitigate
its
revenue
shortfall
for
fiscal
year
(FY)
2020
(ending
September
30,
2020)
with
budget
adjustments
and
reserves,
but
has
not
adopted
its
FY
2021
budget
and
anticipates
insufficient
revenue.
Michigan’s
net
tax-supported
debt
was
$593
per
capita
and
1.2%
of
personal
income,
below
the
$1,071
and
2.0%
national
medians,
respectively.
4
The
independent
credit
rating
agency
Standard
&
Poor’s
(S&P)
maintained
the
state’s
general
obligation
bonds’
Credit
Quality
Composition
*
8/31/20
Ratings
%
of
Total
Investments
AAA
9.32%
AA
71.01%
A
15.79%
BBB
0.83%
Refunded
3.05%
*Securities,
except
for
those
labeled
Not
Rated,
are
assigned
ratings
by
one
or
more
Nationally
Recognized
Statistical
Credit
Rating
Organizations
(NRSROs),
such
as
Standard
&
Poor’s,
Moody’s
and
Fitch,
that
can
be
considered
by
the
investment
man-
ager
as
part
of
its
independent
securities
analysis.
When
ratings
from
multiple
agen-
cies
are
available,
the
highest
is
used,
consistent
with
the
portfolio
investment
process.
Ratings
reflect
an
NRSRO’s
opinion
of
an
issuer’s
creditworthiness
and
typically
range
from
AAA
(highest)
to
D
(lowest).
The
Below
Investment
Grade
category
consists
of
bonds
rated
below
BBB-.
The
Refunded
category
generally
consists
of
refunded
bonds
secured
by
U.S.
government
or
other
high-quality
securities
and
not
rerated
by
an
NRSRO.
The
Not
Rated
category
consists
of
ratable
securities
that
have
not
been
rated
by
an
NRSRO.
Cash
and
equivalents
are
excluded
from
this
composition.
Portfolio
Composition
8/31/20
%
of
Total
Investments
*
General
Obligation
36.58%
Hospital
&
Health
Care
19.00%
Higher
Education
16.88%
Utilities
10.54%
Refunded**
6.27%
Subject
to
Government
Appropriations
4.75%
Transportation
3.31%
Housing
2.67%
*
Does
not
include
cash
and
cash
equivalents.
**
Includes
all
refunded
bonds;
the
percentage
may
differ
from
that
in
the
Credit
Quality
Composition.
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
estimated
tax-basis
net
investment
income
distributions
for
the
period
shown.
A
portion
or
all
of
the
distribution
may
be
reclassified
as
return
of
capital
or
short-term
or
long-term
capital
gains
once
final
tax
designations
are
known.
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:
Bureau
of
Labor
Statistics.
4.
Source:
Moody’s
Investors
Service,
State
government
–
US:
Medians
–
State
debt
declined
in
2019,
but
likely
to
grow
in
coming
years
,
5/12/20.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Statement
of
Investments
(SOI).
The
SOI
begins
on
page
77
.
Franklin
Michigan
Tax-Free
Income
Fund
21
franklintempleton.com
Semiannual
Report
AA
rating,
but
revised
its
stable
outlook
to
negative.
5
The
negative
outlook
reflected
the
increased
possibility
that
S&P
could
lower
its
rating
for
Michigan,
which
it
expects
to
experience
a
much
slower
economic
recovery
than
other
states,
leading
to
stagnant
revenue
growth
and
considerable
budget
challenges
over
the
next
few
years.
S&P
believes
Michigan
will
need
to
prioritize
more
sustainable
budget
adjustment
to
address
likely
shortfalls
over
the
next
few
fiscal
years
to
maintain
its
credit
quality.
Manager’s
Discussion
We
used
various
investment
strategies
during
the
six
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
August
31,
2020,
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.
5.
This
does
not
indicate
S&P’s
rating
of
the
Fund.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Performance
Summary
as
of
August
31,
2020
Franklin
Michigan
Tax-Free
Income
Fund
22
franklintempleton.com
Semiannual
Report
The
performance
tables
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
8/31/20
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
3.75%
and
the
minimum
is
0%.
Class
A
:
3.75%
maximum
initial
sales
charge;
Advisor
Class:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Share
Class
Cumulative
Total
Return
1
Average
Annual
Total
Return
2
–
A
3,4
6-Month
+0.37%
-3.39%
1-Year
+3.07%
-0.80%
5-Year
+19.07%
+2.76%
10-Year
+37.85%
+2.87%
Advisor
6-Month
+0.50%
+0.50%
1-Year
+3.41%
+3.41%
5-Year
+19.97%
+3.71%
10-Year
+39.57%
+3.39%
Share
Class
Distribution
Rate
5
Taxable
Equivalent
Distribution
Rate
6
30-Day
Standardized
Yield
7
Taxable
Equivalent
30-Day
Standardized
Yield
6
A
2.34%
4.26%
0.76%
1.38%
Advisor
2.68%
4.88%
1.04%
1.89%
See
page
23
for
Performance
Summary
footnotes.
Franklin
Michigan
Tax-Free
Income
Fund
Performance
Summary
23
franklintempleton.com
Semiannual
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.
Unexpected
events
and
their
aftermaths,
such
as
the
spread
of
deadly
diseases;
natural,
environmental
or
man-made
disasters;
financial,
political
or
social
disruptions;
terrorism
and
war;
and
other
tragedies
or
catastrophes,
can
cause
investor
fear
and
panic,
which
can
adversely
affect
the
economies
of
many
companies,
sectors,
nations,
regions
and
the
market
in
general,
in
ways
that
cannot
necessarily
be
foreseen.
The
Fund’s
prospectus
also
includes
a
description
of
the
main
investment
risks.
1.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
2.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
3.
Effective
9/10/18,
Class
A
shares
closed
to
new
investors,
were
renamed
Class
A1
shares,
and
a
new
Class
A
share
with
a
different
expense
structure
became
available.
Class
A
performance
shown
has
been
calculated
as
follows:
(a)
for
periods
prior
to
9/10/18,
a
restated
figure
is
used
based
on
the
Fund’s
Class
A1
performance
that
includes
any
Rule
12b-1
rate
differential
that
exists
between
Class
A1
and
Class
A;
and
(b)
for
periods
after
9/10/18,
actual
Class
A
performance
is
used,
reflecting
all
charges
and
fees
applicable
to
that
class.
4.
Prior
to
3/1/19,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
4.25%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total\
returns
(with
sales
charges)
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
3.75%.
5.
Distribution
rate
is
based
on
an
annualization
of
the
respective
class’s
August
dividend
and
the
maximum
offering
price
(NAV
for
Advisor
class)
per
share
on
8/31/20.
6.
Taxable
equivalent
distribution
rate
and
yield
assume
the
published
rates
as
of
6/18/20
for
the
maximum
combined
effective
federal
and
Michigan
personal
income
tax
rate
of
45.05%,
based
on
the
federal
income
tax
rate
of
37.00%
plus
3.80%
Medicare
tax.
7.
The
Fund’s
30-day
standardized
yield
is
calculated
over
a
trailing
30-day
period
using
the
yield
to
maturity
on
bonds
and/or
the
dividends
accrued
on
stocks.
It
may
not
equal
the
Fund’s
actual
income
distribution
rate,
which
reflects
the
Fund’s
past
dividends
paid
to
shareholders.
8.
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
(3/1/20–8/31/20)
Share
Class
Net
Investment
Income
A
$0.142640
A1
$0.151548
C
$0.118959
R6
$0.160123
Advisor
$0.157692
Total
Annual
Operating
Expenses
8
Share
Class
A
0.82%
Advisor
0.57%
Your
Fund’s
Expenses
Franklin
MichiganTax-Free
Income
Fund
24
franklintempleton.com
Semiannual
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
184/365
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
3/1/20
Ending
Account
Value
8/31/20
Expenses
Paid
During
Period
3/1/20–8/31/20
1,2
Ending
Account
Value
8/31/20
Expenses
Paid
During
Period
3/1/20–8/31/20
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$1,003.70
$4.15
$1,021.07
$4.18
0.82%
A1
$1,000
$1,004.50
$3.40
$1,021.81
$3.43
0.67%
C
$1,000
$1,001.70
$6.15
$1,019.06
$6.20
1.22%
R6
$1,000
$1,005.20
$2.69
$1,022.53
$2.71
0.53%
Advisor
$1,000
$1,005.00
$2.89
$1,022.32
$2.92
0.57%
25
franklintempleton.com
Semiannual
Report
Franklin
Minnesota
Tax-Free
Income
Fund
This
semiannual
report
for
Franklin
Minnesota
Tax-Free
Income
Fund
covers
the
period
ended
August
31,
2020
.
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
to
provide
as
high
a
level
of
income
exempt
from
federal
and
Minnesota
personal
income
taxes
as
is
consistent
with
prudent
investment
management
and
preservation
of
capital
by
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
$12.82
on
February
29,
2020,
to
$12.74
on
August
31,
2020.
The
Fund’s
Class
A
shares
paid
dividends
totaling
13.1343
cents
per
share
for
the
reporting
period.
2
The
Performance
Summary
beginning
on
page
27
shows
that
at
the
end
of
this
reporting
period
the
Fund’s
Class
A
shares’
distribution
rate
was
1.98%,
based
on
an
annualization
of
August’s
2.1800
cents
per
share
dividend
and
the
maximum
offering
price
of
$13.24
on
August
31,
2020.
An
investor
in
the
2020
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
4.01%
from
a
taxable
investment
to
match
the
Fund’s
Class
A
tax-free
distribution
rate.
For
other
performance
data,
please
see
the
Performance
Summary.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
State
Update
During
the
six
months
under
review,
Minnesota’s
economy
contracted.
Historically
the
state
has
had
a
very
low
unemployment
rate
and
high
labor
force
participation
rate
relative
to
the
rest
of
the
nation,
supported
by
a
deep
and
diverse
economy.
It
is
expected
to
show
economic
resilience
during
the
COVID-19
induced
recession,
helped
by
relatively
less
reliance
on
hospitality
and
leisure.
Minnesota’s
unemployment
rate
rose
from
3.1%
in
February
2020
to
7.4%
at
period
end,
below
the
nation’s
8.4%
average.
3
The
state’s
strong
reserves
provide
a
substantial
cushion
to
weather
the
effects
of
the
current
recession,
but
the
significant
use
of
these
reserves
to
address
its
structural
deficits
in
fiscal
year
(FY)
2020
and
FY
2021
could
diminish
future
budgetary
flexibility.
The
state’s
net
tax-supported
debt
Credit
Quality
Composition
*
8/31/20
Ratings
%
of
Total
Investments
AAA
26.88%
AA
57.58%
A
10.88%
BBB
0.11%
Refunded
4.51%
Not
Rated
0.04%
*Securities,
except
for
those
labeled
Not
Rated,
are
assigned
ratings
by
one
or
more
Nationally
Recognized
Statistical
Credit
Rating
Organizations
(NRSROs),
such
as
Standard
&
Poor’s,
Moody’s
and
Fitch,
that
can
be
considered
by
the
investment
man-
ager
as
part
of
its
independent
securities
analysis.
When
ratings
from
multiple
agen-
cies
are
available,
the
highest
is
used,
consistent
with
the
portfolio
investment
process.
Ratings
reflect
an
NRSRO’s
opinion
of
an
issuer’s
creditworthiness
and
typically
range
from
AAA
(highest)
to
D
(lowest).
The
Below
Investment
Grade
category
consists
of
bonds
rated
below
BBB-.
The
Refunded
category
generally
consists
of
refunded
bonds
secured
by
U.S.
government
or
other
high-quality
securities
and
not
rerated
by
an
NRSRO.
The
Not
Rated
category
consists
of
ratable
securities
that
have
not
been
rated
by
an
NRSRO.
Cash
and
equivalents
are
excluded
from
this
composition.
Portfolio
Composition
8/31/20
%
of
Total
Investments
*
General
Obligation
50.12%
Utilities
11.86%
Hospital
&
Health
Care
11.39%
Higher
Education
8.96%
Transportation
5.67%
Housing
5.65%
Refunded**
3.37%
Subject
to
Government
Appropriations
2.76%
Tax-Supported
0.22%
*
Does
not
include
cash
and
cash
equivalents.
**
Includes
all
refunded
bonds;
the
percentage
may
differ
from
that
in
the
Credit
Quality
Composition.
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
estimated
tax-basis
net
investment
income
distributions
for
the
period
shown.
A
portion
or
all
of
the
distribution
may
be
reclassified
as
return
of
capital
or
short-term
or
long-term
capital
gains
once
final
tax
designations
are
known.
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:
Bureau
of
Labor
Statistics.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Statement
of
Investments
(SOI).
The
SOI
begins
on
page
89
.
Franklin
Minnesota
Tax-Free
Income
Fund
26
franklintempleton.com
Semiannual
Report
was
$1,406
per
capita
and
2.4%
of
personal
income,
above
the
$1,071
and
2.0%
national
medians,
respectively.
4
The
independent
credit
rating
agency
Standard
&
Poor’s
(S&P)
maintained
the
state’s
general
obligation
bonds’
AAA
rating,
but
revised
the
outlook
to
negative
from
stable,
as
S&P
believes
the
state’s
long-term
credit
quality
will
hinge
on
its
ability
to
enact
structural
adjustments
to
align
revenue
and
expenditure
in
a
timely
manner,
rather
than
a
reliance
on
one-time
measures.
5
Manager’s
Discussion
We
used
various
investment
strategies
during
the
six
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
August
31,
2020,
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.
4.
Source:
Moody’s
Investors
Service,
State
government
–
US:
Medians
–
State
debt
declined
in
2019,
but
likely
to
grow
in
coming
years
,
5/12/20.
5.
This
does
not
indicate
S&P’s
rating
of
the
Fund.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Performance
Summary
as
of
August
31,
2020
Franklin
Minnesota
Tax-Free
Income
Fund
27
franklintempleton.com
Semiannual
Report
The
performance
tables
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
8/31/20
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
3.75%
and
the
minimum
is
0%.
Class
A
:
3.75%
maximum
initial
sales
charge;
Advisor
Class:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Share
Class
Cumulative
Total
Return
1
Average
Annual
Total
Return
2
–
A
3,4
6-Month
+0.42%
-3.35%
1-Year
+3.09%
-0.78%
5-Year
+16.67%
+2.35%
10-Year
+38.07%
+2.88%
Advisor
6-Month
+0.54%
+0.54%
1-Year
+3.27%
+3.27%
5-Year
+17.61%
+3.30%
10-Year
+39.76%
+3.40%
Share
Class
Distribution
Rate
5
Taxable
Equivalent
Distribution
Rate
6
30-Day
Standardized
Yield
7
Taxable
Equivalent
30-Day
Standardized
Yield
6
A
1.98%
4.01%
0.62%
1.26%
Advisor
2.31%
4.68%
0.89%
1.80%
See
page
28
for
Performance
Summary
footnotes.
Franklin
Minnesota
Tax-Free
Income
Fund
Performance
Summary
28
franklintempleton.com
Semiannual
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.
Unexpected
events
and
their
aftermaths,
such
as
the
spread
of
deadly
diseases;
natural,
environmental
or
man-made
disasters;
financial,
political
or
social
disruptions;
terrorism
and
war;
and
other
tragedies
or
catastrophes,
can
cause
investor
fear
and
panic,
which
can
adversely
affect
the
economies
of
many
companies,
sectors,
nations,
regions
and
the
market
in
general,
in
ways
that
cannot
necessarily
be
foreseen.
The
Fund’s
prospectus
also
includes
a
description
of
the
main
investment
risks.
1.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
2.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
3.
Effective
9/10/18,
Class
A
shares
closed
to
new
investors,
were
renamed
Class
A1
shares,
and
a
new
Class
A
share
with
a
different
expense
structure
became
available.
Class
A
performance
shown
has
been
calculated
as
follows:
(a)
for
periods
prior
to
9/10/18,
a
restated
figure
is
used
based
on
the
Fund’s
Class
A1
performance
that
includes
any
Rule
12b-1
rate
differential
that
exists
between
Class
A1
and
Class
A;
and
(b)
for
periods
after
9/10/18,
actual
Class
A
performance
is
used,
reflecting
all
charges
and
fees
applicable
to
that
class.
4.
Prior
to
3/1/19,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
4.25%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total\
returns
(with
sales
charges)
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
3.75%.
5.
Distribution
rate
is
based
on
an
annualization
of
the
respective
class’s
August
dividend
and
the
maximum
offering
price
(NAV
for
Advisor
class)
per
share
on
8/31/20.
6.
Taxable
equivalent
distribution
rate
and
yield
assume
the
published
rates
as
of
6/18/20
for
the
maximum
combined
effective
federal
and
Minnesota
personal
income
tax
rate
of
50.65%,
based
on
the
federal
income
tax
rate
of
37.00%
plus
3.80%
Medicare
tax.
7.
The
Fund’s
30-day
standardized
yield
is
calculated
over
a
trailing
30-day
period
using
the
yield
to
maturity
on
bonds
and/or
the
dividends
accrued
on
stocks.
It
may
not
equal
the
Fund’s
actual
income
distribution
rate,
which
reflects
the
Fund’s
past
dividends
paid
to
shareholders.
8.
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
(3/1/20–8/31/20)
Share
Class
Net
Investment
Income
A
$0.131343
A1
$0.140920
C
$0.105935
R6
$0.150698
Advisor
$0.147332
Total
Annual
Operating
Expenses
8
Share
Class
A
0.83%
Advisor
0.58%
Your
Fund’s
Expenses
Franklin
Minnesota
Tax-Free
Income
Fund
29
franklintempleton.com
Semiannual
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
184/365
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
3/1/20
Ending
Account
Value
8/31/20
Expenses
Paid
During
Period
3/1/20–8/31/20
1,2
Ending
Account
Value
8/31/20
Expenses
Paid
During
Period
3/1/20–8/31/20
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$1,004.20
$4.19
$1,021.02
$4.23
0.83%
A1
$1,000
$1,004.90
$3.45
$1,021.77
$3.48
0.68%
C
$1,000
$1,002.10
$6.21
$1,019.01
$6.26
1.23%
R6
$1,000
$1,005.70
$2.67
$1,022.54
$2.69
0.53%
Advisor
$1,000
$1,005.40
$2.94
$1,022.27
$2.96
0.58%
30
franklintempleton.com
Semiannual
Report
Franklin
Ohio
Tax-Free
Income
Fund
This
semiannual
report
for
Franklin
Ohio
Tax-Free
Income
Fund
covers
the
period
ended
August
31,
2020
.
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
to
provide
as
high
a
level
of
income
exempt
from
federal
and
Ohio
personal
income
taxes
as
is
consistent
with
prudent
investment
management
and
preservation
of
capital
by
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
$13.20
on
February
29,
2020,
to
$13.12
on
August
31,
2020.
The
Fund’s
Class
A
shares
paid
dividends
totaling
16.3052
cents
per
share
for
the
reporting
period.
2
The
Performance
Summary
beginning
on
page
32
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
August’s
2.6913
cents
per
share
dividend
and
the
maximum
offering
price
of
$13.63
on
August
31,
2020.
An
investor
in
the
2020
maximum
combined
effective
federal
and
Ohio
personal
income
tax
bracket
of
45.60%
(including
3.80%
Medicare
tax)
would
need
to
earn
a
distribution
rate
of
4.36%
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
six
months
under
review,
Ohio’s
economy
contracted.
The
state
is
expected
to
have
experienced
a
deeper
near-term
downturn
relative
to
the
rest
of
the
nation
resulting
from
the
COVID-19
pandemic,
in
part
due
to
its
comparatively
large
exposure
to
manufactured
goods
and
transportation
equipment.
Ohio
registered
a
steep
decline
in
general
revenue
fund
receipts
in
April,
but
revenue
stabilized
in
May
and
June.
The
state’s
unemployment
rate
rose
from
4.1%
in
February
2020
to
8.9%
at
period
end,
slightly
above
the
nation’s
8.4%
average.
3
It
entered
the
fiscal
2020–2021
biennium
well
positioned,
with
the
highest
budget
stabilization
fund
(BSF)
savings
in
state
history,
which
will
afford
it
a
degree
of
flexibility
in
meeting
near-term
budgetary
challenges.
Ohio’s
net
tax-supported
debt
was
$1,158
per
Credit
Quality
Composition
*
8/31/20
Ratings
%
of
Total
Investments
AAA
11.99%
AA
55.63%
A
16.39%
Refunded
15.99%
*Securities,
except
for
those
labeled
Not
Rated,
are
assigned
ratings
by
one
or
more
Nationally
Recognized
Statistical
Credit
Rating
Organizations
(NRSROs),
such
as
Standard
&
Poor’s,
Moody’s
and
Fitch,
that
can
be
considered
by
the
investment
man-
ager
as
part
of
its
independent
securities
analysis.
When
ratings
from
multiple
agen-
cies
are
available,
the
highest
is
used,
consistent
with
the
portfolio
investment
process.
Ratings
reflect
an
NRSRO’s
opinion
of
an
issuer’s
creditworthiness
and
typically
range
from
AAA
(highest)
to
D
(lowest).
The
Below
Investment
Grade
category
consists
of
bonds
rated
below
BBB-.
The
Refunded
category
generally
consists
of
refunded
bonds
secured
by
U.S.
government
or
other
high-quality
securities
and
not
rerated
by
an
NRSRO.
The
Not
Rated
category
consists
of
ratable
securities
that
have
not
been
rated
by
an
NRSRO.
Cash
and
equivalents
are
excluded
from
this
composition.
Portfolio
Composition
8/31/20
%
of
Total
Investments
*
General
Obligation
32.42%
Refunded**
20.88%
Utilities
16.42%
Hospital
&
Health
Care
11.42%
Higher
Education
9.74%
Transportation
3.36%
Subject
to
Government
Appropriations
3.19%
Other
Revenue
1.69%
Tax-Supported
0.88%
*
Does
not
include
cash
and
cash
equivalents.
**
Includes
all
refunded
bonds;
the
percentage
may
differ
from
that
in
the
Credit
Quality
Composition.
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
estimated
tax-basis
net
investment
income
distributions
for
the
period
shown.
A
portion
or
all
of
the
distribution
may
be
reclassified
as
return
of
capital
or
short-term
or
long-term
capital
gains
once
final
tax
designations
are
known.
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:
Bureau
of
Labor
Statistics.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Statement
of
Investments
(SOI).
The
SOI
begins
on
page
100
.
Franklin
Ohio
Tax-Free
Income
Fund
31
franklintempleton.com
Semiannual
Report
capita
and
2.3%
of
personal
income,
above
the
$1,071
and
2.0%
national
medians,
respectively.
4
The
independent
credit
rating
agency
Standard
&
Poor’s
(S&P)
maintained
the
state’s
general
obligation
bonds
AA+
rating
with
a
stable
outlook.
5
The
rating
reflected
S&P’s
view
of
Ohio’s
long
track
record
of
proactive
financial
and
budget
management,
its
commitment
to
funding
budget
reserves
and
low-to-moderate
debt
levels.
The
stable
outlook
reflects
S&P’s
expectation
that
the
state
will
restore
any
drawdown
in
its
BSF.
Manager’s
Discussion
We
used
various
investment
strategies
during
the
six
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
August
31,
2020,
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.
4.
Source:
Moody’s
Investors
Service,
State
government
–
US:
Medians
–
State
debt
declined
in
2019,
but
likely
to
grow
in
coming
years
,
5/12/20.
5.
This
does
not
indicate
S&P’s
rating
of
the
Fund.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Performance
Summary
as
of
August
31,
2020
Franklin
Ohio
Tax-Free
Income
Fund
32
franklintempleton.com
Semiannual
Report
The
performance
tables
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
8/31/20
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
3.75%
and
the
minimum
is
0%.
Class
A
:
3.75%
maximum
initial
sales
charge;
Advisor
Class:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Share
Class
Cumulative
Total
Return
1
Average
Annual
Total
Return
2
–
A
3,4
6-Month
+0.65%
-3.13%
1-Year
+3.29%
-0.58%
5-Year
+19.54%
+2.85%
10-Year
+44.00%
+3.32%
Advisor
6-Month
+0.77%
+0.77%
1-Year
+3.55%
+3.55%
5-Year
+20.49%
+3.80%
10-Year
+45.86%
+3.85%
Share
Class
Distribution
Rate
5
Taxable
Equivalent
Distribution
Rate
6
30-Day
Standardized
Yield
7
Taxable
Equivalent
30-Day
Standardized
Yield
6
A
2.37%
4.36%
1.28%
2.35%
Advisor
2.72%
5.00%
1.58%
2.90%
See
page
33
for
Performance
Summary
footnotes.
Franklin
Ohio
Tax-Free
Income
Fund
Performance
Summary
33
franklintempleton.com
Semiannual
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.
Unexpected
events
and
their
aftermaths,
such
as
the
spread
of
deadly
diseases;
natural,
environmental
or
man-made
disasters;
financial,
political
or
social
disruptions;
terrorism
and
war;
and
other
tragedies
or
catastrophes,
can
cause
investor
fear
and
panic,
which
can
adversely
affect
the
economies
of
many
companies,
sectors,
nations,
regions
and
the
market
in
general,
in
ways
that
cannot
necessarily
be
foreseen.
The
Fund’s
prospectus
also
includes
a
description
of
the
main
investment
risks.
1.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
2.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
3.
Effective
9/10/18,
Class
A
shares
closed
to
new
investors,
were
renamed
Class
A1
shares,
and
a
new
Class
A
share
with
a
different
expense
structure
became
available.
Class
A
performance
shown
has
been
calculated
as
follows:
(a)
for
periods
prior
to
9/10/18,
a
restated
figure
is
used
based
on
the
Fund’s
Class
A1
performance
that
includes
any
Rule
12b-1
rate
differential
that
exists
between
Class
A1
and
Class
A;
and
(b)
for
periods
after
9/10/18,
actual
Class
A
performance
is
used,
reflecting
all
charges
and
fees
applicable
to
that
class.
4.
Prior
to
3/1/19,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
4.25%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total
returns
(with
sales
charges)
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
3.75%.
5.
Distribution
rate
is
based
on
an
annualization
of
the
respective
class’s
August
dividend
and
the
maximum
offering
price
(NAV
for
Advisor
class)
per
share
on
8/31/20.
6.
Taxable
equivalent
distribution
rate
and
yield
assume
the
published
rates
as
of
6/18/20
for
the
maximum
combined
effective
federal
and
Ohio
personal
income
tax
rate
of
45.60%,
based
on
the
federal
income
tax
rate
of
37.00%
plus
3.80%
Medicare
tax.
7.
The
Fund’s
30-day
standardized
yield
is
calculated
over
a
trailing
30-day
period
using
the
yield
to
maturity
on
bonds
and/or
the
dividends
accrued
on
stocks.
It
may
not
equal
the
Fund’s
actual
income
distribution
rate,
which
reflects
the
Fund’s
past
dividends
paid
to
shareholders.
8.
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
(3/1/20–8/31/20)
Share
Class
Net
Investment
Income
A
$0.163052
A1
$0.172962
C
$0.136993
R6
$0.182178
Advisor
$0.179575
Total
Annual
Operating
Expenses
8
Share
Class
A
0.81%
Advisor
0.56%
Your
Fund’s
Expenses
Franklin
Ohio
Tax-Free
Income
Fund
34
franklintempleton.com
Semiannual
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
184/365
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
3/1/20
Ending
Account
Value
8/31/20
Expenses
Paid
During
Period
3/1/20–8/31/20
1,2
Ending
Account
Value
8/31/20
Expenses
Paid
During
Period
3/1/20–8/31/20
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$1,006.50
$4.06
$1,021.15
$4.09
0.80%
A1
$1,000
$1,006.50
$3.32
$1,021.90
$3.34
0.66%
C
$1,000
$1,003.60
$6.07
$1,019.14
$6.12
1.20%
R6
$1,000
$1,007.90
$2.60
$1,022.61
$2.62
0.52
%
Advisor
$1,000
$1,007.70
$2.81
$1,022.41
$2.83
0.56%
35
franklintempleton.com
Semiannual
Report
Franklin
Oregon
Tax-Free
Income
Fund
This
semiannual
report
for
Franklin
Oregon
Tax-Free
Income
Fund
covers
the
period
ended
August
31,
2020
.
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
to
provide
as
high
a
level
of
income
exempt
from
federal
and
Oregon
personal
income
taxes
as
is
consistent
with
prudent
investment
management
and
preservation
of
capital
by
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
$12.00
on
February
29,
2020,
to
$11.85
on
August
31,
2020.
The
Fund’s
Class
A
shares
paid
dividends
totaling
13.7585
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
2.16%,
based
on
an
annualization
of
August’s
2.2164
cents
per
share
dividend
and
the
maximum
offering
price
of
$12.31
on
August
31,
2020.
An
investor
in
the
2020
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
4.38%
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
six
months
under
review,
Oregon’s
economy
contracted
after
severe
disruption
due
to
the
COVID-19
pandemic.
Its
economy
is
more
export
oriented
than
many
other
states,
reflecting
its
status
as
a
center
of
high-
technology
manufacturing,
with
China
as
its
leading
export
market.
Oregon’s
unemployment
rate
rose
from
3.3%
in
February
2020
to
7.7%
at
period
end,
below
the
nation’s
8.4%
average.
3
A
strategy
to
seek
budgetary
savings
exceeding
the
estimated
deficit
for
the
remainder
of
the
2019
–
2021
biennium
was
instigated
during
the
period.
A
key
consideration
during
this
recession
will
be
Oregon’s
ability
to
manage
its
reliance
on
personal
income
tax,
which
historically
showed
volatility
during
periods
of
economic
Credit
Quality
Composition
*
8/31/20
Ratings
%
of
Total
Investments
AAA
9.23%
AA
73.13%
A
4.78%
BBB
4.00%
Below
Investment
Grade
1.64%
Refunded
7.22%
*Securities,
except
for
those
labeled
Not
Rated,
are
assigned
ratings
by
one
or
more
Nationally
Recognized
Statistical
Credit
Rating
Organizations
(NRSROs),
such
as
Standard
&
Poor’s,
Moody’s
and
Fitch,
that
can
be
considered
by
the
investment
man-
ager
as
part
of
its
independent
securities
analysis.
When
ratings
from
multiple
agen-
cies
are
available,
the
highest
is
used,
consistent
with
the
portfolio
investment
process.
Ratings
reflect
an
NRSRO’s
opinion
of
an
issuer’s
creditworthiness
and
typically
range
from
AAA
(highest)
to
D
(lowest).
The
Below
Investment
Grade
category
consists
of
bonds
rated
below
BBB-.
The
Refunded
category
generally
consists
of
refunded
bonds
secured
by
U.S.
government
or
other
high-quality
securities
and
not
rerated
by
an
NRSRO.
The
Not
Rated
category
consists
of
ratable
securities
that
have
not
been
rated
by
an
NRSRO.
Cash
and
equivalents
are
excluded
from
this
composition.
Portfolio
Composition
8/31/20
%
of
Total
Investments
*
General
Obligation
36.53%
Transportation
14.33%
Hospital
&
Health
Care
11.91%
Refunded**
10.73%
Utilities
9.11%
Higher
Education
7.34%
Housing
5.55%
Other
Revenue
2.99%
Subject
to
Government
Appropriations
0.99%
Tax-Supported
0.52%
*
Does
not
include
cash
and
cash
equivalents.
**
Includes
all
refunded
bonds;
the
percentage
may
differ
from
that
in
the
Credit
Quality
Composition.
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
estimated
tax-basis
net
investment
income
distributions
for
the
period
shown.
A
portion
or
all
of
the
distribution
may
be
reclassified
as
return
of
capital
or
short-term
or
long-term
capital
gains
once
final
tax
designations
are
known.
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:
Bureau
of
Labor
Statistics.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Statement
of
Investments
(SOI).
The
SOI
begins
on
page
112
.
Franklin
Oregon
Tax-Free
Income
Fund
36
franklintempleton.com
Semiannual
Report
contraction.
The
state’s
net
tax-supported
debt
was
$2,018
per
capita
and
3.8%
of
personal
income,
above
the
$1,071
and
2.0%
national
medians,
respectively.
4
The
independent
credit
rating
agency
Standard
&
Poor’s
(S&P)
maintained
the
state’s
general
obligation
bonds’
AA+
rating
with
a
stable
outlook.
5
In
S&P’s
view,
Oregon
has
strong
financial
policies
and
practices,
and
a
demonstrated
willingness
to
correct
structural
imbalances,
as
well
as
the
mechanisms
to
build
rainy
day
funds
and
strong
budget
reserve
levels.
S&P’s
stable
outlook
is
based
on
the
expectation
these
practices
will
continue.
Manager’s
Discussion
We
used
various
investment
strategies
during
the
six
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
August
31,
2020,
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.
4.
Source:
Moody’s
Investors
Service,
State
government
–
US:
Medians
–
State
debt
declined
in
2019,
but
likely
to
grow
in
coming
years
,
5/12/20.
5.
This
does
not
indicate
S&P’s
rating
of
the
Fund.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Performance
Summary
as
of
August
31,
2020
Franklin
Oregon
Tax-Free
Income
Fund
37
franklintempleton.com
Semiannual
Report
The
performance
tables
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
8/31/20
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
3.75%
and
the
minimum
is
0%.
Class
A
:
3.75%
maximum
initial
sales
charge;
Advisor
Class:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Share
Class
Cumulative
Total
Return
1
Average
Annual
Total
Return
2
–
A
3,4
6-Month
-0.09%
-3.83%
1-Year
+2.60%
-1.25%
5-Year
+17.54%
+2.50%
10-Year
+37.22%
+2.82%
Advisor
6-Month
+0.04%
+0.04%
1-Year
+2.86%
+2.86%
5-Year
+18.47%
+3.45%
10-Year
+39.02%
+3.35%
Share
Class
Distribution
Rate
5
Taxable
Equivalent
Distribution
Rate
6
30-Day
Standardized
Yield
7
Taxable
Equivalent
30-Day
Standardized
Yield
6
A
2.16%
4.38%
1.03%
2.09%
Advisor
2.50%
5.07%
1.32%
2.68
%
See
page
38
for
Performance
Summary
footnotes.
Franklin
Oregon
Tax-Free
Income
Fund
Performance
Summary
38
franklintempleton.com
Semiannual
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.
Puerto
Rico
municipal
bonds
have
been
impacted
by
recent
adverse
economic
and
market
changes,
which
may
cause
the
Fund’s
share
price
to
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.
Unexpected
events
and
their
aftermaths,
such
as
the
spread
of
deadly
diseases;
natural,
environmental
or
man-made
disasters;
financial,
political
or
social
disruptions;
terrorism
and
war;
and
other
tragedies
or
catastrophes,
can
cause
investor
fear
and
panic,
which
can
adversely
affect
the
econo-
mies
of
many
companies,
sectors,
nations,
regions
and
the
market
in
general,
in
ways
that
cannot
necessarily
be
foreseen.
The
Fund’s
prospectus
also
includes
a
description
of
the
main
investment
risks.
1.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
2.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
3.
Effective
9/10/18,
Class
A
shares
closed
to
new
investors,
were
renamed
Class
A1
shares,
and
a
new
Class
A
share
with
a
different
expense
structure
became
available.
Class
A
performance
shown
has
been
calculated
as
follows:
(a)
for
periods
prior
to
9/10/18,
a
restated
figure
is
used
based
on
the
Fund’s
Class
A1
performance
that
includes
any
Rule
12b-1
rate
differential
that
exists
between
Class
A1
and
Class
A;
and
(b)
for
periods
after
9/10/18,
actual
Class
A
performance
is
used,
reflecting
all
charges
and
fees
applicable
to
that
class.
4.
Prior
to
3/1/19,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
4.25%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total
returns
(with
sales
charges)
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
3.75%.
5.
Distribution
rate
is
based
on
an
annualization
of
the
respective
class’s
August
dividend
and
the
maximum
offering
price
(NAV
for
Advisor
class)
per
share
on
8/31/20.
6.
Taxable
equivalent
distribution
rate
and
yield
assume
the
published
rates
as
of
6/18/20
for
the
maximum
combined
effective
federal
and
Oregon
personal
income
tax
rate
of
50.70%,
based
on
the
federal
income
tax
rate
of
37.00%
plus
3.80%
Medicare
tax.
7.
The
Fund’s
30-day
standardized
yield
is
calculated
over
a
trailing
30-day
period
using
the
yield
to
maturity
on
bonds
and/or
the
dividends
accrued
on
stocks.
It
may
not
equal
the
Fund’s
actual
income
distribution
rate,
which
reflects
the
Fund’s
past
dividends
paid
to
shareholders.
8.
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
(3/1/20–8/31/20)
Share
Class
Net
Investment
Income
A
$0.137585
A1
$0.146478
C
$0.114031
R6
$0.154279
Advisor
$0.152482
Total
Annual
Operating
Expenses
8
Share
Class
A
0.80%
Advisor
0.55%
Your
Fund’s
Expenses
Franklin
Oregon
Tax-Free
Income
Fund
39
franklintempleton.com
Semiannual
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
184/365
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
3/1/20
Ending
Account
Value
8/31/20
Expenses
Paid
During
Period
3/1/20–8/31/20
1,2
Ending
Account
Value
8/31/20
Expenses
Paid
During
Period
3/1/20–8/31/20
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$999.10
$4.02
$1,021.19
$4.06
0.80%
A1
$1,000
$999.90
$3.27
$1,021.93
$3.31
0.65%
C
$1,000
$996.40
$6.01
$1,019.18
$6.08
1.20%
R6
$1,000
$1,000.60
$2.62
$1,022.59
$2.64
0.52%
Advisor
$1,000
$1,000.40
$2.76
$1,022.44
$2.80
0.55%
40
franklintempleton.com
Semiannual
Report
Franklin
Pennsylvania
Tax-Free
Income
Fund
This
semiannual
report
for
Franklin
Pennsylvania
Tax-Free
Income
Fund
covers
the
period
ended
August
31,
2020
.
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
to
provide
as
high
a
level
of
income
exempt
from
federal
and
Pennsylvania
personal
income
taxes
as
is
consistent
with
prudent
investment
management
and
preservation
of
capital
by
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
$10.11
on
February
29,
2020,
to
$9.93
on
August
31,
2020.
The
Fund’s
Class
A
shares
paid
dividends
totaling
13.5192
cents
per
share
for
the
reporting
period.
2
The
Performance
Summary
beginning
on
page
42
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
August’s
2.2069
cents
per
share
dividend
and
the
maximum
offering
price
of
$10.32
on
August
31,
2020.
An
investor
in
the
2020
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
4.56%
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
six
months
under
review,
Pennsylvania’s
economy
weakened.
Although
it
has
a
very
large
and
diverse
economic
base,
the
commonwealth’s
high
dependence
on
personal
income
and
sales
taxes
was
affected
by
the
COVID-19
pandemic.
Pennsylvania’s
unemployment
rate
rose
from
4.7%
to
10.3%
at
period-end,
far
exceeding
the
nation’s
8.4%
average.
3
The
commonwealth
may
take
on
more
debt
to
address
a
projected
budget
deficit
in
fiscal
year
2021,
although
its
debt
burden
is
higher
than
the
state
median,
and
it
has
very
slim
budget
reserves
to
address
revenue
deferrals.
Pennsylvania’s
net
tax-supported
debt
was
$1,519
per
capita
and
2.6%
of
personal
income,
significantly
above
the
$1,071
and
2.0%
national
medians,
respectively.
4
The
independent
credit
rating
agency
Moody’s
Credit
Quality
Composition
*
8/31/20
Ratings
%
of
Total
Investments
AAA
0.48%
AA
51.67%
A
29.12%
BBB
5.51%
Below
Investment
Grade
1.11%
Refunded
12.11%
*Securities,
except
for
those
labeled
Not
Rated,
are
assigned
ratings
by
one
or
more
Nationally
Recognized
Statistical
Credit
Rating
Organizations
(NRSROs),
such
as
Standard
&
Poor’s,
Moody’s
and
Fitch,
that
can
be
considered
by
the
investment
man-
ager
as
part
of
its
independent
securities
analysis.
When
ratings
from
multiple
agen-
cies
are
available,
the
highest
is
used,
consistent
with
the
portfolio
investment
process.
Ratings
reflect
an
NRSRO’s
opinion
of
an
issuer’s
creditworthiness
and
typically
range
from
AAA
(highest)
to
D
(lowest).
The
Below
Investment
Grade
category
consists
of
bonds
rated
below
BBB-.
The
Refunded
category
generally
consists
of
refunded
bonds
secured
by
U.S.
government
or
other
high-quality
securities
and
not
rerated
by
an
NRSRO.
The
Not
Rated
category
consists
of
ratable
securities
that
have
not
been
rated
by
an
NRSRO.
Cash
and
equivalents
are
excluded
from
this
composition.
Portfolio
Composition
8/31/20
%
of
Total
Investments
*
Hospital
&
Health
Care
22.29%
Higher
Education
20.13%
Utilities
16.32%
Refunded**
14.81%
General
Obligation
14.59%
Transportation
4.72%
Housing
3.96%
Subject
to
Government
Appropriations
2.39%
Other
Revenue
0.79%
*
Does
not
include
cash
and
cash
equivalents.
**
Includes
all
refunded
bonds;
the
percentage
may
differ
from
that
in
the
Credit
Quality
Composition.
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
estimated
tax-basis
net
investment
income
distributions
for
the
period
shown.
A
portion
or
all
of
the
distribution
may
be
reclassified
as
return
of
capital
or
short-term
or
long-term
capital
gains
once
final
tax
designations
are
known.
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:
Bureau
of
Labor
Statistics.
4.
Source:
Moody’s
Investors
Service,
State
government
–
US:
Medians
–
State
debt
declined
in
2019,
but
likely
to
grow
in
coming
years
,
5/12/20.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Statement
of
Investments
(SOI).
The
SOI
begins
on
page
123
.
Franklin
Pennsylvania
Tax-Free
Income
Fund
41
franklintempleton.com
Semiannual
Report
Investor
Service
(Moody’s)
maintained
the
state’s
general
obligation
bonds’
Aa3
rating
with
a
stable
outlook.
5
The
rating
reflected
Moody’s
view
of
the
commonwealth’s
economy,
set
against
its
high
fixed
costs
and
leverage
compared
to
other
states
and
budget
reserves
that
are
weak
as
a
share
of
its
budget.
The
outlook
reflects
the
assumption
that
Pennsylvania’s
large
economy
can
generate
the
resources
necessary
to
work
towards
a
structural
balance
if
the
global
economy
returns
to
growth
in
2021.
After
period-end,
independent
credit
rating
agency
Standard
&
Poor’s
(S&P)
affirmed
the
commonwealth’s
A+
rating
and
revised
its
outlook
to
negative
from
stable.
5
The
downgrade
reflected
S&P’s
view
of
Pennsylvania’s
fiscal
challenges
in
the
wake
of
the
COVID-19
pandemic
that
could
deepen
its
structural
imbalance
in
the
face
of
steep
revenue
declines,
significantly
increased
liquidity
demands
and
limited
recourse
in
the
near
term.
Manager’s
Discussion
We
used
various
investment
strategies
during
the
six
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
August
31,
2020,
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.
5.
These
do
not
indicate
ratings
of
the
Fund.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Performance
Summary
as
of
August
31,
2020
Franklin
Pennsylvania
Tax-Free
Income
Fund
42
franklintempleton.com
Semiannual
Report
The
performance
tables
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
8/31/20
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
3.75%
and
the
minimum
is
0%.
Class
A
:
3.75%
maximum
initial
sales
charge;
Advisor
Class:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Share
Class
Cumulative
Total
Return
1
Average
Annual
Total
Return
2
–
A
3,4
6-Month
-0.33%
-4.06%
1-Year
+1.81%
-2.01%
5-Year
+15.55%
+2.15%
10-Year
+36.99%
+2.80%
Advisor
6-Month
-0.20%
-0.20%
1-Year
+1.96%
+1.96%
5-Year
+16.57%
+3.11%
10-Year
+38.75%
+3.33%
Share
Class
Distribution
Rate
5
Taxable
Equivalent
Distribution
Rate
6
30-Day
Standardized
Yield
7
Taxable
Equivalent
30-Day
Standardized
Yield
6
A
2.56%
4.56%
1.43%
2.55%
Advisor
2.92%
5.20%
1.73%
3.08
%
See
page
43
for
Performance
Summary
footnotes.
Franklin
Pennsylvania
Tax-Free
Income
Fund
Performance
Summary
43
franklintempleton.com
Semiannual
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.
Puerto
Rico
municipal
bonds
have
been
impacted
by
recent
adverse
economic
and
market
changes,
which
may
cause
the
Fund’s
share
price
to
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.
Unexpected
events
and
their
aftermaths,
such
as
the
spread
of
deadly
diseases;
natural,
environmental
or
man-made
disasters;
financial,
political
or
social
disruptions;
terrorism
and
war;
and
other
tragedies
or
catastrophes,
can
cause
investor
fear
and
panic,
which
can
adversely
affect
the
econo-
mies
of
many
companies,
sectors,
nations,
regions
and
the
market
in
general,
in
ways
that
cannot
necessarily
be
foreseen.
The
Fund’s
prospectus
also
includes
a
description
of
the
main
investment
risks.
1.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
2.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
3.
Effective
9/10/18,
Class
A
shares
closed
to
new
investors,
were
renamed
Class
A1
shares,
and
a
new
Class
A
share
with
a
different
expense
structure
became
available.
Class
A
performance
shown
has
been
calculated
as
follows:
(a)
for
periods
prior
to
9/10/18,
a
restated
figure
is
used
based
on
the
Fund’s
Class
A1
performance
that
includes
any
Rule
12b-1
rate
differential
that
exists
between
Class
A1
and
Class
A;
and
(b)
for
periods
after
9/10/18,
actual
Class
A
performance
is
used,
reflecting
all
charges
and
fees
applicable
to
that
class.
4.
Prior
to
3/1/19,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
4.25%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total
returns
(with
sales
charges)
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
3.75%.
5.
Distribution
rate
is
based
on
an
annualization
of
the
respective
class’s
August
dividend
and
the
maximum
offering
price
(NAV
for
Advisor
class)
per
share
on
8/31/20.
6.
Taxable
equivalent
distribution
rate
and
yield
assume
the
published
rates
as
of
6/18/20
for
the
maximum
combined
effective
federal
and
Pennsylvania
personal
income
tax
rate
of
43.87%,
based
on
the
federal
income
tax
rate
of
37.00%
plus
3.80%
Medicare
tax.
This
combined
rate
does
not
consider
the
impact
of
Pennsylvania’s
surcharge
on
taxable
income
in
excess
of
$1
million.
7.
The
Fund’s
30-day
standardized
yield
is
calculated
over
a
trailing
30-day
period
using
the
yield
to
maturity
on
bonds
and/or
the
dividends
accrued
on
stocks.
It
may
not
equal
the
Fund’s
actual
income
distribution
rate,
which
reflects
the
Fund’s
past
dividends
paid
to
shareholders.
8.
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
(3/1/20–8/31/20)
Share
Class
Net
Investment
Income
A
$0.135192
A1
$0.142697
C
$0.115452
R6
$0.149719
Advisor
$0.147743
Total
Annual
Operating
Expenses
8
Share
Class
A
0.82%
Advisor
0.57%
Your
Fund’s
Expenses
Franklin
Pennsylvania
Tax-Free
Income
Fund
44
franklintempleton.com
Semiannual
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
184/365
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
3/1/20
Ending
Account
Value
8/31/20
Expenses
Paid
During
Period
3/1/20–8/31/20
1,2
Ending
Account
Value
8/31/20
Expenses
Paid
During
Period
3/1/20–8/31/20
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$996.70
$4.09
$1,021.11
$4.14
0.81%
A1
$1,000
$997.50
$3.35
$1,021.85
$3.39
0.67%
C
$1,000
$994.80
$6.10
$1,019.09
$6.17
1.21%
R6
$1,000
$998.20
$2.64
$1,022.56
$2.67
0.53
%
Advisor
$1,000
$998.00
$2.85
$1,022.36
$2.88
0.57%
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Arizona
Tax-Free
Income
Fund
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The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
45
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
Year
Ended
February
28,
2019
b
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
..........................................
$11.24
$10.58
$10.52
Income
from
investment
operations
c
:
Net
investment
income
d
..................................................
0.14
0.29
0.16
Net
realized
and
unrealized
gains
(losses)
....................................
(0.24)
0.67
0.05
Total
from
investment
operations
.............................................
(0.10)
0.96
0.21
Less
distributions
from:
Net
investment
income
...................................................
(0.14)
(0.30)
(0.15)
Net
asset
value,
end
of
period
...............................................
$11.00
$11.24
$10.58
Total
return
e
............................................................
(0.86)%
9.24%
2.09%
Ratios
to
average
net
assets
f
Expenses
g
.............................................................
0.81%
0.81%
0.81%
Net
investment
income
....................................................
2.56%
2.72%
3.12%
Supplemental
data
Net
assets,
end
of
period
(000’s)
.............................................
$147,344
$132,026
$44,516
Portfolio
turnover
rate
.....................................................
9.68%
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
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
46
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
2019
2018
2017
2016
a
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$11.22
$10.56
$10.58
$10.78
$11.07
$11.22
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.15
0.31
0.34
0.37
0.38
0.41
Net
realized
and
unrealized
gains
(losses)
(0.24)
0.67
(0.01)
(0.19)
(0.29)
(0.15)
Total
from
investment
operations
........
(0.09)
0.98
0.33
0.18
0.09
0.26
Less
distributions
from:
Net
investment
income
..............
(0.15)
(0.32)
(0.35)
(0.38)
(0.38)
(0.41)
Net
asset
value,
end
of
period
..........
$10.98
$11.22
$10.56
$10.58
$10.78
$11.07
Total
return
d
.......................
(0.79)%
9.42%
3.18%
1.62%
0.77%
2.39%
Ratios
to
average
net
assets
e
Expenses
.........................
0.66%
f
0.66%
f
0.66%
f
0.65%
0.63%
0.62%
Net
investment
income
...............
2.73%
2.87%
3.27%
3.39%
3.47%
3.69%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$605,591
$672,061
$661,250
$737,426
$769,835
$799,510
Portfolio
turnover
rate
................
9.68%
11.37%
18.13%
17.47%
13.02%
13.28%
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,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Arizona
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
47
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
2019
2018
2017
2016
a
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$11.42
$10.75
$10.75
$10.95
$11.24
$11.39
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.12
0.26
0.29
0.31
0.33
0.35
Net
realized
and
unrealized
gains
(losses)
(0.25)
0.67
(—)
d
(0.20)
(0.30)
(0.15)
Total
from
investment
operations
........
(0.13)
0.93
0.29
0.11
0.03
0.20
Less
distributions
from:
Net
investment
income
..............
(0.12)
(0.26)
(0.29)
(0.31)
(0.32)
(0.35)
Net
asset
value,
end
of
period
..........
$11.17
$11.42
$10.75
$10.75
$10.95
$11.24
Total
return
e
.......................
(1.04)%
8.70%
2.74%
1.03%
0.19%
1.79%
Ratios
to
average
net
assets
f
Expenses
.........................
1.21%
g
1.21%
g
1.21%
g
1.20%
1.18%
1.17%
Net
investment
income
...............
2.15%
2.32%
2.72%
2.84%
2.92%
3.14%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$71,199
$80,562
$77,216
$105,010
$118,381
$113,370
Portfolio
turnover
rate
................
9.68%
11.37%
18.13%
17.47%
13.02%
13.28%
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,
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
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
48
In
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
Year
Ended
February
28,
2018
b
2020
a
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
..............................
$11.26
$10.60
$10.60
$10.84
Income
from
investment
operations
c
:
Net
investment
income
d
......................................
0.16
0.33
0.36
0.22
Net
realized
and
unrealized
gains
(losses)
........................
(0.25)
0.67
(—)
e
(0.24)
Total
from
investment
operations
.................................
(0.09)
1.00
0.36
(0.02)
Less
distributions
from:
Net
investment
income
.......................................
(0.16)
(0.34)
(0.36)
(0.22)
Net
asset
value,
end
of
period
...................................
$11.01
$11.26
$10.60
$10.60
Total
return
f
.................................................
(0.81)%
9.53%
3.48%
(0.18)%
Ratios
to
average
net
assets
g
Expenses
before
waiver
and
payments
by
affiliates
...................
0.54%
0.54%
0.55%
0.53%
Expenses
net
of
waiver
and
payments
by
affiliates
....................
0.53%
h
0.53%
h
0.53%
h
0.51%
Net
investment
income
........................................
2.84%
3.00%
3.40%
3.53%
Supplemental
data
Net
assets,
end
of
period
(000’s)
.................................
$18,750
$16,971
$12,562
$10,816
Portfolio
turnover
rate
.........................................
9.68%
11.37%
18.13%
17.47%
a
For
the
year
ended
February
29.
b
For
the
period
August
1,
2017
(effective
date)
to
February
28,
2018.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Amount
rounds
to
less
than
$0.01
per
share.
f
Total
return
is
not
annualized
for
periods
less
than
one
year.
g
Ratios
are
annualized
for
periods
less
than
one
year.
h
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
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.
Semiannual
Report
49
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
2019
2018
2017
2016
a
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$11.26
$10.60
$10.61
$10.81
$11.10
$11.25
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.15
0.32
0.36
0.38
0.40
0.42
Net
realized
and
unrealized
gains
(losses)
(0.25)
0.67
(0.01)
(0.19)
(0.30)
(0.15)
Total
from
investment
operations
........
(0.10)
0.99
0.35
0.19
0.10
0.27
Less
distributions
from:
Net
investment
income
..............
(0.15)
(0.33)
(0.36)
(0.39)
(0.39)
(0.42)
Net
asset
value,
end
of
period
..........
$11.01
$11.26
$10.60
$10.61
$10.81
$11.10
Total
return
d
.......................
(0.82)%
9.50%
3.36%
1.72%
0.86%
2.48%
Ratios
to
average
net
assets
e
Expenses
.........................
0.56%
f
0.56%
f
0.56%
f
0.55%
0.53%
0.52%
Net
investment
income
...............
2.81%
2.97%
3.37%
3.49%
3.57%
3.79%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$139,120
$124,881
$90,140
$86,795
$90,707
$57,674
Portfolio
turnover
rate
................
9.68%
11.37%
18.13%
17.47%
13.02%
13.28%
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
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited),
August
31,
2020
Franklin
Arizona
Tax-Free
Income
Fund
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Semiannual
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
97.9%
Arizona
96.6%
Arizona
Board
of
Regents
,
University
of
Arizona
(The)
,
COP
,
2012C
,
Refunding
,
5
%
,
6/01/31
.........................................................
$
7,025,000
$
7,515,626
Arizona
Department
of
Transportation
,
State
Highway
Fund,
Revenue,
2011A,
Pre-Refunded,
5%,
7/01/36
............
10,000,000
10,401,500
State
Highway
Fund,
Revenue,
2015,
Refunding,
5%,
7/01/31
................
10,000,000
11,589,700
State
Highway
Fund,
Revenue,
2016,
Refunding,
5%,
7/01/36
................
8,680,000
10,590,728
Arizona
Health
Facilities
Authority
,
CommonSpirit
Health
Obligated
Group,
Revenue,
2011
B-2,
AGMC
Insured,
5%,
3/01/41
........................................................
5,000,000
5,089,750
CommonSpirit
Health
Obligated
Group,
Revenue,
B-1,
5.25%,
3/01/39
..........
10,000,000
10,208,900
Phoenix
Children's
Hospital
Obligated
Group,
Revenue,
2012
A,
Refunding,
5%,
2/01/42
........................................................
8,000,000
8,372,880
Scottsdale
Healthcare
Hospitals
Obligated
Group,
Revenue,
2014A,
Refunding,
5%,
12/01/39
.......................................................
15,000,000
16,976,100
Scottsdale
Healthcare
Hospitals
Obligated
Group,
Revenue,
2014A,
Refunding,
5%,
12/01/42
.......................................................
9,535,000
10,715,910
Arizona
Industrial
Development
Authority
,
Academies
of
Math
&
Science
Obligated
Group,
Revenue,
2017A,
Refunding,
5%,
7/01/42
........................................................
2,045,000
2,374,756
Academies
of
Math
&
Science
Obligated
Group,
Revenue,
2017A,
Refunding,
5%,
7/01/51
........................................................
1,080,000
1,243,512
Arizona
Agribusiness
and
Equine
Center,
Inc.,
Revenue,
2017
A,
5%,
3/01/48
....
1,555,000
1,811,295
BASIS
Schools,
Inc.
Obligated
Group,
Revenue,
2017
F,
Refunding,
5%,
7/01/47
..
3,350,000
3,861,914
Equitable
School
Revolving
Fund
LLC
Obligated
Group,
Revenue,
2019
A,
5%,
11/01/33
.......................................................
1,000,000
1,248,090
Equitable
School
Revolving
Fund
LLC
Obligated
Group,
Revenue,
2019
A,
5%,
11/01/38
.......................................................
1,630,000
2,004,134
Equitable
School
Revolving
Fund
LLC
Obligated
Group,
Revenue,
2019
A,
5%,
11/01/39
.......................................................
1,000,000
1,225,490
Equitable
School
Revolving
Fund
LLC
Obligated
Group,
Revenue,
2019
A,
5%,
11/01/44
.......................................................
6,645,000
8,042,842
Equitable
School
Revolving
Fund
LLC
Obligated
Group,
Revenue,
2019
A,
4%,
11/01/49
.......................................................
5,115,000
5,721,434
Equitable
School
Revolving
Fund
LLC
Obligated
Group,
Revenue,
2020A,
4%,
11/01/40
.......................................................
800,000
927,304
Great
Lakes
Senior
Living
Communities
LLC,
Revenue,
2019A,
5%,
1/01/38
.....
1,175,000
1,106,051
Great
Lakes
Senior
Living
Communities
LLC,
Revenue,
2019A,
5%,
1/01/54
.....
1,250,000
1,094,850
Great
Lakes
Senior
Living
Communities
LLC,
Revenue,
Second
Tier,
2019B,
5%,
1/01/36
........................................................
1,105,000
1,015,937
Great
Lakes
Senior
Living
Communities
LLC,
Revenue,
Second
Tier,
2019B,
5%,
1/01/49
........................................................
3,500,000
2,946,475
Great
Lakes
Senior
Living
Communities
LLC,
Revenue,
Second
Tier,
2019B,
5.125%,
1/01/54
........................................................
2,000,000
1,688,540
Phoenix
Children's
Hospital
Obligated
Group,
Revenue,
2020A,
5%,
2/01/40
.....
700,000
881,965
Phoenix
Children's
Hospital
Obligated
Group,
Revenue,
2020A,
4%,
2/01/50
.....
11,595,000
13,207,633
Provident
Group-NCCU
Properties
LLC,
Revenue,
2019A,
BAM
Insured,
5%,
6/01/49
3,345,000
3,913,550
Provident
Group-NCCU
Properties
LLC,
Revenue,
2019A,
BAM
Insured,
5%,
6/01/54
3,240,000
3,776,414
Arizona
Sports
&
Tourism
Authority
,
Revenue
,
2012
A
,
Refunding
,
5
%
,
7/01/36
.....
1,550,000
1,625,981
Arizona
State
University
,
Revenue,
2014,
5%,
8/01/33
.........................................
2,200,000
2,517,196
Revenue,
2014,
5%,
8/01/34
.........................................
3,320,000
3,793,333
Revenue,
2014,
5%,
8/01/44
.........................................
4,145,000
4,666,151
Revenue,
2015
D,
5%,
7/01/41
........................................
5,000,000
5,830,300
Revenue,
2015
D,
5%,
7/01/46
........................................
5,000,000
5,795,750
Revenue,
2015B,
Refunding,
5%,
7/01/41
...............................
14,070,000
16,406,464
Revenue,
2016
B,
5%,
7/01/42
........................................
2,000,000
2,386,440
Revenue,
2016
C,
5%,
7/01/46
........................................
10,000,000
11,869,500
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Arizona
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
51
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Arizona
(continued)
Arizona
State
University,
(continued)
Revenue,
2017
B,
Refunding,
5%,
7/01/43
...............................
$
4,005,000
$
4,863,912
Revenue,
2019A,
5%,
7/01/43
........................................
2,100,000
2,661,036
Central
Arizona
Water
Conservation
District
,
Revenue
,
2016
,
5
%
,
1/01/34
.........
1,000,000
1,213,680
City
of
El
Mirage
,
GO
,
2012
,
AGMC
Insured
,
5
%
,
7/01/42
.....................
2,200,000
2,362,954
City
of
Goodyear
,
Water
&
Sewer,
Revenue,
Sub.
Lien,
2011,
Pre-Refunded,
AGMC
Insured,
5.25%,
7/01/31
........................................................
1,000,000
1,041,800
Water
&
Sewer,
Revenue,
Sub.
Lien,
2011,
Pre-Refunded,
AGMC
Insured,
5.5%,
7/01/41
........................................................
1,500,000
1,565,805
Water
&
Sewer,
Revenue,
Sub.
Lien,
2020,
Refunding,
AGMC
Insured,
4%,
7/01/39
600,000
709,962
Water
&
Sewer,
Revenue,
Sub.
Lien,
2020,
AGMC
Insured,
4%,
7/01/40
.........
650,000
767,013
Water
&
Sewer,
Revenue,
Sub.
Lien,
2020,
AGMC
Insured,
4%,
7/01/45
.........
12,135,000
14,147,468
City
of
Lake
Havasu
City
,
Wastewater
System,
Revenue,
2015B,
Refunding,
AGMC
Insured,
5%,
7/01/40
...
15,000,000
17,636,400
Wastewater
System,
Revenue,
2015B,
Refunding,
AGMC
Insured,
5%,
7/01/43
...
9,155,000
10,721,878
City
of
Mesa
,
Utility
System,
Revenue,
2018,
5%,
7/01/32
..............................
1,000,000
1,287,890
Utility
System,
Revenue,
2018,
5%,
7/01/34
..............................
1,265,000
1,611,028
Utility
System,
Revenue,
2018,
4%,
7/01/38
..............................
1,425,000
1,668,646
Utility
System,
Revenue,
2018,
4%,
7/01/39
..............................
6,135,000
7,164,944
Utility
System,
Revenue,
2018,
5%,
7/01/42
..............................
15,000,000
18,597,450
Utility
System,
Revenue,
2019A,
5%,
7/01/43
.............................
10,000,000
12,652,900
City
of
Phoenix
Civic
Improvement
Corp.
,
Airport,
Revenue,
2017
A,
5%,
7/01/42
..................................
15,090,000
17,741,313
Airport,
Revenue,
Junior
Lien,
2017
D,
Refunding,
4%,
7/01/40
...............
20,570,000
22,854,710
Airport,
Revenue,
Junior
Lien,
2019
B,
5%,
7/01/44
........................
8,500,000
10,192,520
Airport,
Revenue,
Senior
Lien,
2018,
5%,
7/01/48
..........................
5,000,000
5,927,450
City
of
Phoenix,
Revenue,
2019
A,
5%,
7/01/45
...........................
10,000,000
11,418,900
Excise
Tax,
Revenue,
2015A,
Refunding,
5%,
7/01/41
......................
10,000,000
11,778,200
Excise
Tax,
Revenue,
2020
A,
Refunding,
4%,
7/01/39
......................
1,200,000
1,454,820
Excise
Tax,
Revenue,
2020
A,
Refunding,
4%,
7/01/40
......................
800,000
962,944
Excise
Tax,
Revenue,
2020
A,
Refunding,
4%,
7/01/45
......................
2,500,000
2,969,525
State
of
Arizona
Department
of
Revenue,
Revenue,
2005
B,
NATL
Insured,
5.5%,
7/01/27
........................................................
3,945,000
5,070,193
State
of
Arizona
Department
of
Revenue,
Revenue,
2005
B,
NATL
Insured,
5.5%,
7/01/28
........................................................
2,000,000
2,632,560
State
of
Arizona
Department
of
Revenue,
Revenue,
2005
B,
NATL
Insured,
5.5%,
7/01/29
........................................................
2,000,000
2,691,960
State
of
Arizona
Department
of
Revenue,
Revenue,
2005
B,
NATL
Insured,
5.5%,
7/01/36
........................................................
5,000,000
7,516,900
State
of
Arizona
Department
of
Revenue,
Revenue,
2005
B,
NATL
Insured,
5.5%,
7/01/37
........................................................
7,000,000
10,653,580
Wastewater,
Revenue,
Junior
Lien,
2018A,
5%,
7/01/37
.....................
1,000,000
1,268,600
Wastewater,
Revenue,
Junior
Lien,
2018A,
4%,
7/01/39
.....................
5,000,000
5,839,400
Water
System,
Revenue,
Junior
Lien,
2014A,
5%,
7/01/39
...................
10,000,000
11,495,700
Water
System,
Revenue,
Junior
Lien,
2016,
Refunding,
5%,
7/01/39
............
5,000,000
6,034,700
Water
System,
Revenue,
Junior
Lien,
2020
B,
5%,
7/01/44
...................
5,000,000
6,524,700
City
of
Tempe
,
Revenue
,
2011A
,
Pre-Refunded
,
5
%
,
7/01/31
...................
2,325,000
2,418,349
City
of
Tucson
,
Water
System,
Revenue,
2011,
Pre-Refunded,
5%,
7/01/32
..................
5,000,000
5,200,750
Water
System,
Revenue,
2020,
4%,
7/01/36
..............................
650,000
799,708
Water
System,
Revenue,
2020,
4%,
7/01/37
..............................
500,000
612,795
Water
System,
Revenue,
2020,
3%,
7/01/39
..............................
1,150,000
1,268,266
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Arizona
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Semiannual
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)
Arizona
(continued)
County
of
Maricopa
,
Banner
Health
Obligated
Group
,
Revenue
,
2005
,
Pre-Refunded
,
5
%
,
4/01/35
......................................................
$
12,090,000
$
14,098,028
Glendale
Industrial
Development
Authority
,
Midwestern
University
,
Revenue
,
2007
,
Refunding
,
5
%
,
5/15/31
.............................................
3,455,000
3,609,093
Glendale
Municipal
Property
Corp.
,
Revenue,
Refunding,
5%,
7/01/38
.....................................
18,530,000
20,262,183
Industrial
Development
Authority
of
the
City
of
Phoenix
(The)
,
Downtown
Phoenix
Student
Housing
II
LLC,
Revenue,
2019
A,
5%,
7/01/44
......
1,000,000
1,051,670
Downtown
Phoenix
Student
Housing
II
LLC,
Revenue,
2019
A,
5%,
7/01/49
......
1,995,000
2,087,628
Downtown
Phoenix
Student
Housing
II
LLC,
Revenue,
2019
A,
5%,
7/01/54
......
1,330,000
1,386,804
Downtown
Phoenix
Student
Housing
LLC,
Revenue,
2018A,
Refunding,
5%,
7/01/33
600,000
651,726
Downtown
Phoenix
Student
Housing
LLC,
Revenue,
2018A,
Refunding,
5%,
7/01/37
2,000,000
2,147,120
Downtown
Phoenix
Student
Housing
LLC,
Revenue,
2018A,
Refunding,
5%,
7/01/42
8,550,000
9,060,264
GreatHearts
Arizona,
Revenue,
2016
A,
Refunding,
5%,
7/01/36
...............
4,065,000
4,436,622
GreatHearts
Arizona,
Revenue,
2016
A,
Refunding,
5%,
7/01/41
...............
1,225,000
1,324,642
GreatHearts
Arizona,
Revenue,
2016
A,
Refunding,
5%,
7/01/46
...............
1,335,000
1,435,152
JMF-
Higley
2012
LLC,
Revenue,
2012,
5%,
12/01/34
.......................
1,355,000
1,478,617
JMF-
Higley
2012
LLC,
Revenue,
2012,
5%,
12/01/39
.......................
5,610,000
6,099,472
Vista
College
Preparatory
Obligated
Group,
Revenue,
2018A,
5%,
7/01/48
.......
1,000,000
1,182,350
Industrial
Development
Authority
of
the
County
of
Pima
(The)
,
Christian
Care
Tucson,
Inc.,
Revenue,
2017C,
Refunding,
5%,
12/15/47
.........
3,840,000
4,255,565
Christian
Care
Tucson,
Inc.,
Revenue,
Senior
Lien,
2017A,
Refunding,
5%,
12/15/32
1,765,000
2,002,745
Christian
Care
Tucson,
Inc.,
Revenue,
Senior
Lien,
2017A,
Refunding,
5%,
6/15/37
2,240,000
2,514,557
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
4,992,602
Yavapai
Community
Hospital
Association
Obligated
Group,
Revenue,
2016,
Refunding,
5%,
8/01/36
............................................
1,310,000
1,529,805
Yavapai
Community
Hospital
Association
Obligated
Group,
Revenue,
2019,
Refunding,
4%,
8/01/38
............................................
1,510,000
1,726,851
Yavapai
Community
Hospital
Association
Obligated
Group,
Revenue,
2019,
Refunding,
5%,
8/01/39
............................................
1,350,000
1,666,238
Yavapai
Community
Hospital
Association
Obligated
Group,
Revenue,
2019,
Refunding,
4%,
8/01/43
............................................
3,000,000
3,383,700
Maricopa
County
High
School
District
No.
214
Tolleson
Union
High
School
,
GO
,
2018
A
,
5
%
,
7/01/37
....................................................
1,000,000
1,235,870
Maricopa
County
Industrial
Development
Authority
,
Banner
Health
Obligated
Group,
Revenue,
A,
4%,
1/01/41
...................
9,630,000
10,826,720
Banner
Health
Obligated
Group,
Revenue,
A,
5%,
1/01/41
...................
37,590,000
45,363,236
Christian
Care
Obligated
Group,
Revenue,
2016A,
Refunding,
5%,
1/01/36
......
3,885,000
4,373,228
Christian
Care
Obligated
Group,
Revenue,
2016C,
Refunding,
5%,
1/01/40
......
9,840,000
11,007,122
Creighton
University,
Revenue,
2020,
5%,
7/01/47
.........................
13,000,000
15,477,280
Creighton
University,
Revenue,
2020,
4%,
7/01/50
.........................
1,695,000
1,829,329
GreatHearts
Arizona
Obligated
Group,
Revenue,
2017A,
Refunding,
5%,
7/01/37
..
1,000,000
1,191,290
GreatHearts
Arizona
Obligated
Group,
Revenue,
2017A,
Refunding,
5%,
7/01/52
..
1,000,000
1,165,710
Highland
Prep
Obligated
Group,
Revenue,
2019,
5%,
1/01/37
................
1,000,000
1,242,760
Highland
Prep
Obligated
Group,
Revenue,
2019,
5%,
1/01/50
................
1,715,000
2,077,105
Legacy
Traditional
School
Obligated
Group,
Revenue,
2019
A,
Refunding,
5%,
7/01/49
........................................................
3,920,000
4,665,623
Reid
Traditional
Schools
Painted
Rock
Academy,
Revenue,
2016,
5%,
7/01/36
....
1,120,000
1,252,015
Reid
Traditional
Schools
Painted
Rock
Academy,
Revenue,
2016,
5%,
7/01/47
....
3,325,000
3,648,722
Scottsdale
Healthcare
Hospitals
Obligated
Group,
Revenue,
2019A,
Refunding,
5%,
9/01/37
........................................................
4,025,000
4,904,060
Scottsdale
Healthcare
Hospitals
Obligated
Group,
Revenue,
2019A,
Refunding,
5%,
9/01/42
........................................................
4,000,000
4,811,000
Western
IB
Hunt
Groves
LP,
Revenue,
2001A-1,
AMBAC
Insured,
5.3%,
12/01/22
.
620,000
620,818
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Arizona
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
53
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Arizona
(continued)
Maricopa
County
Pollution
Control
Corp.
,
El
Paso
Electric
Co.,
Revenue,
2009
B,
Refunding,
3.6%,
4/01/40
.............
$
13,500,000
$
14,573,790
El
Paso
Electric
Co.,
Revenue,
2012
A,
Refunding,
4.5%,
8/01/42
.............
10,000,000
10,377,700
a
Public
Service
Co.
of
New
Mexico,
Revenue,
2003
A,
Refunding,
Mandatory
Put,
1.05%,
6/01/22
..................................................
3,750,000
3,760,275
Southern
California
Edison
Co.,
Revenue,
2000
B,
Refunding,
5%,
6/01/35
......
14,745,000
14,788,498
Maricopa
County
School
District
No.
83-Cartwright
Elementary
,
GO
,
2011A
,
AGMC
Insured
,
5.375
%
,
7/01/30
............................................
5,415,000
5,634,849
Maricopa
County
Unified
School
District
No.
11-Peoria
,
GO,
2013,
5%,
7/01/31
.............................................
5,100,000
5,721,384
GO,
2018,
BAM
Insured,
5%,
7/01/33
...................................
1,000,000
1,243,240
Maricopa
County
Unified
School
District
No.
95
Queen
Creek
,
GO,
2018,
5%,
7/01/33
.............................................
500,000
600,430
GO,
2018,
5%,
7/01/37
.............................................
1,200,000
1,428,468
McAllister
Academic
Village
LLC
,
Arizona
State
University,
Revenue,
2016
A,
Refunding,
5%,
7/01/33
............
2,000,000
2,407,880
Arizona
State
University,
Revenue,
2016
A,
Refunding,
5%,
7/01/38
............
2,000,000
2,378,040
Arizona
State
University,
Revenue,
2016
A,
Refunding,
5%,
7/01/39
............
1,000,000
1,186,650
Mohave
County
Union
High
School
District
No.
2
Colorado
River
,
GO
,
2017
,
5
%
,
7/01/35
.........................................................
1,000,000
1,228,790
Northern
Arizona
University
,
Revenue,
2013,
5%,
8/01/26
.........................................
2,380,000
2,607,790
Revenue,
2014,
Pre-Refunded,
5%,
6/01/40
..............................
2,820,000
3,308,875
Revenue,
2014,
Refunding,
5%,
6/01/40
.................................
4,545,000
5,072,402
Revenue,
2014,
Pre-Refunded,
5%,
6/01/44
..............................
8,005,000
9,376,417
Revenue,
2020
B,
Refunding,
BAM
Insured,
5%,
6/01/38
....................
4,000,000
5,094,920
Revenue,
2020
B,
Refunding,
BAM
Insured,
5%,
6/01/39
....................
1,355,000
1,720,538
Pima
County
Unified
School
District
No.
20
Vail
,
GO
,
2016
,
Refunding
,
BAM
Insured
,
5
%
,
7/01/36
......................................................
3,305,000
4,028,365
Pima
County
Unified
School
District
No.
30
Sahuarita
,
GO,
2017,
BAM
Insured,
5%,
7/01/33
...................................
2,665,000
3,293,594
GO,
2017,
BAM
Insured,
5%,
7/01/34
...................................
2,800,000
3,451,840
Pima
County
Unified
School
District
No.
6
Marana
,
GO,
2017C,
BAM
Insured,
5%,
7/01/36
.................................
2,385,000
2,938,129
GO,
2018-D,
AGMC
Insured,
5%,
7/01/38
...............................
2,500,000
3,054,725
Pinal
County
Community
College
District
,
Revenue
,
2017
,
BAM
Insured
,
5
%
,
7/01/34
1,065,000
1,302,815
Pinal
County
Electric
District
No.
3
,
Revenue,
2011,
Pre-Refunded,
5.25%,
7/01/33
...........................
1,500,000
1,563,345
Revenue,
2011,
Pre-Refunded,
5.25%,
7/01/41
...........................
6,800,000
7,087,164
Revenue,
2016,
Refunding,
5%,
7/01/35
.................................
1,195,000
1,455,797
Salt
River
Project
Agricultural
Improvement
&
Power
District
,
Revenue,
2012
A,
Refunding,
5%,
12/01/30
..............................
4,500,000
4,861,755
Revenue,
2016
A,
Refunding,
5%,
1/01/38
...............................
9,745,000
11,934,799
Revenue,
2017A,
Refunding,
5%,
1/01/37
...............................
10,000,000
12,644,000
Revenue,
2017A,
Refunding,
5%,
1/01/38
...............................
3,310,000
4,168,481
Revenue,
2017A,
Refunding,
5%,
1/01/39
...............................
5,605,000
7,040,833
Revenue,
2019
A,
5%,
1/01/47
........................................
5,000,000
6,456,650
Salt
Verde
Financial
Corp.
,
Revenue,
2007-1,
5%,
12/01/32
.......................................
10,000,000
13,181,400
Revenue,
2007-1,
5%,
12/01/37
.......................................
5,000,000
6,845,650
Student
&
Academic
Services
LLC
,
Revenue,
2014,
BAM
Insured,
5%,
6/01/33
..............................
1,000,000
1,154,460
Revenue,
2014,
BAM
Insured,
5%,
6/01/39
..............................
1,400,000
1,604,498
Revenue,
2014,
BAM
Insured,
5%,
6/01/44
..............................
3,155,000
3,597,110
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Arizona
Tax-Free
Income
Fund
(continued)
franklintempleton.com
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accompanying
notes
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an
integral
part
of
these
financial
statements.
54
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Arizona
(continued)
Town
of
Gilbert
,
Revenue,
Sub.
Lien
,
2015
,
5
%
,
7/01/45
......................
$
10,000,000
$
11,611,300
Town
of
Queen
Creek
,
Excise
Tax,
Revenue,
2018
A,
5%,
8/01/42
...............................
2,500,000
3,115,450
Excise
Tax,
Revenue,
2018
A,
5%,
8/01/47
...............................
5,000,000
6,184,000
Excise
Tax,
Revenue,
2020,
4%,
8/01/45
................................
5,710,000
6,761,496
Excise
Tax,
Revenue,
2020,
4%,
8/01/50
................................
6,340,000
7,431,875
University
Medical
Center
Corp.
,
Banner-University
Medical
Center
Tucson
Campus
LLC,
Revenue,
2011,
Pre-
Refunded,
6%,
7/01/39
............................................
5,000,000
5,241,400
Banner-University
Medical
Center
Tucson
Campus
LLC,
Revenue,
2013,
Pre-
Refunded,
5.625%,
7/01/36
.........................................
5,000,000
5,756,000
University
of
Arizona
(The)
,
Revenue,
2013,
Pre-Refunded,
5%,
8/01/38
..............................
4,360,000
4,952,698
Revenue,
2013,
Refunding,
5%,
8/01/38
.................................
5,790,000
6,400,324
Revenue,
2016,
Refunding,
5%,
6/01/39
.................................
2,750,000
3,283,473
Revenue,
2018
A,
5%,
6/01/43
........................................
5,000,000
6,204,100
Revenue,
2019
A,
5%,
6/01/42
........................................
2,000,000
2,541,540
Revenue,
2020
A,
Refunding,
4%,
8/01/44
...............................
13,945,000
15,998,541
948,181,569
U.S.
Territories
1.3%
Guam
1.3%
Guam
Power
Authority
,
Revenue,
2014A,
AGMC
Insured,
5%,
10/01/39
...........................
6,490,000
7,219,476
Revenue,
2014A,
AGMC
Insured,
5%,
10/01/44
...........................
5,325,000
5,885,776
13,105,252
Total
U.S.
Territories
....................................................................
13,105,252
Total
Municipal
Bonds
(Cost
$891,374,913)
.....................................
961,286,821
a
a
a
a
Short
Term
Investments
1.5%
Municipal
Bonds
1.5%
Arizona
1.5%
b
Arizona
Health
Facilities
Authority
,
Banner
Health
Obligated
Group
,
Revenue
,
2015B
,
LOC
MUFG
Bank
Ltd.
,
Daily
VRDN
and
Put
,
0.02
%
,
1/01/46
.................
9,500,000
9,500,000
b
Arizona
Industrial
Development
Authority
,
Phoenix
Children's
Hospital
,
Revenue
,
2019
A
,
Refunding
,
LOC
JPMorgan
Chase
Bank
NA
,
Daily
VRDN
and
Put
,
0.02
%
,
2/01/48
5,070,000
5,070,000
14,570,000
Total
Municipal
Bonds
(Cost
$14,570,000)
......................................
14,570,000
Total
Short
Term
Investments
(Cost
$14,570,000
)
................................
14,570,000
a
Total
Investments
(Cost
$905,944,913)
99.4%
...................................
$975,856,821
Other
Assets,
less
Liabilities
0.6%
.............................................
6,146,864
Net
Assets
100.0%
...........................................................
$982,003,685
See
Abbreviations
on
page
155
.
a
The
maturity
date
shown
represents
the
mandatory
put
date.
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
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Highlights
Franklin
Colorado
Tax-Free
Income
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55
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
Year
Ended
February
28,
2019
b
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
..........................................
$11.96
$11.32
$11.28
Income
from
investment
operations
c
:
Net
investment
income
d
..................................................
0.15
0.31
0.17
Net
realized
and
unrealized
gains
(losses)
....................................
(0.19)
0.66
0.04
Total
from
investment
operations
.............................................
(0.04)
0.97
0.21
Less
distributions
from:
Net
investment
income
...................................................
(0.14)
(0.33)
(0.17)
Net
asset
value,
end
of
period
...............................................
$11.78
$11.96
$11.32
Total
return
e
............................................................
(0.28)%
8.69%
1.89%
Ratios
to
average
net
assets
f
Expenses
g
.............................................................
0.83%
0.84%
0.84%
Net
investment
income
....................................................
2.51%
2.72%
3.14%
Supplemental
data
Net
assets,
end
of
period
(000’s)
.............................................
$99,063
$87,684
$35,153
Portfolio
turnover
rate
.....................................................
13.43%
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
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The
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56
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
2019
2018
2017
2016
a
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$11.96
$11.31
$11.32
$11.66
$11.94
$12.13
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.16
0.33
0.37
0.37
0.44
0.46
Net
realized
and
unrealized
gains
(losses)
(0.20)
0.67
(0.01)
(0.32)
(0.28)
(0.20)
Total
from
investment
operations
........
(0.04)
1.00
0.36
0.05
0.16
0.26
Less
distributions
from:
Net
investment
income
..............
(0.15)
(0.35)
(0.37)
(0.39)
(0.44)
(0.45)
Net
asset
value,
end
of
period
..........
$11.77
$11.96
$11.31
$11.32
$11.66
$11.94
Total
return
d
.......................
(0.28)%
8.95%
3.28%
0.38%
1.31%
2.26%
Ratios
to
average
net
assets
e
Expenses
.........................
0.68%
f
0.69%
f
0.69%
f
0.68%
g
0.65%
0.65%
Net
investment
income
...............
2.67%
2.87%
3.29%
3.23%
3.67%
3.87%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$435,460
$477,155
$462,925
$521,249
$553,317
$553,114
Portfolio
turnover
rate
................
13.43%
15.00%
10.85%
16.78%
13.61%
5.17%
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,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
g
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Colorado
Tax-Free
Income
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57
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
2019
2018
2017
2016
a
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$12.11
$11.45
$11.46
$11.79
$12.07
$12.26
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.12
0.27
0.31
0.32
0.38
0.40
Net
realized
and
unrealized
gains
(losses)
(0.19)
0.68
(0.01)
(0.33)
(0.29)
(0.20)
Total
from
investment
operations
........
(0.07)
0.95
0.30
(0.01)
0.09
0.20
Less
distributions
from:
Net
investment
income
..............
(0.12)
(0.29)
(0.31)
(0.32)
(0.37)
(0.39)
Net
asset
value,
end
of
period
..........
$11.92
$12.11
$11.45
$11.46
$11.79
$12.07
Total
return
d
.......................
(0.55)%
8.36%
2.67%
(0.10)%
0.73%
1.67%
Ratios
to
average
net
assets
e
Expenses
.........................
1.23%
f
1.24%
f
1.24%
f
1.23%
g
1.20%
1.20%
Net
investment
income
...............
2.11%
2.32%
2.74%
2.68%
3.12%
3.32%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$56,976
$66,329
$69,045
$99,811
$115,472
$111,450
Portfolio
turnover
rate
................
13.43%
15.00%
10.85%
16.78%
13.61%
5.17%
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,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
g
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
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Colorado
Tax-Free
Income
Fund
(continued)
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of
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statements.
58
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
Year
Ended
February
28,
2018
b
2020
a
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
..............................
$11.97
$11.32
$11.33
$11.64
Income
from
investment
operations
c
:
Net
investment
income
d
......................................
0.16
0.35
0.39
0.23
Net
realized
and
unrealized
gains
(losses)
........................
(0.19)
0.66
(0.01)
(0.32)
Total
from
investment
operations
.................................
(0.03)
1.01
0.38
(0.09)
Less
distributions
from:
Net
investment
income
.......................................
(0.16)
(0.36)
(0.39)
(0.22)
Net
asset
value,
end
of
period
...................................
$11.78
$11.97
$11.32
$11.33
Total
return
e
................................................
(0.21)%
9.09%
3.40%
(0.79)%
Ratios
to
average
net
assets
f
Expenses
before
waiver
and
payments
by
affiliates
...................
0.55%
0.56%
0.58%
0.57%
Expenses
net
of
waiver
and
payments
by
affiliates
....................
0.54%
g
0.55%
g
0.55%
g
0.54%
Net
investment
income
........................................
2.80%
3.01%
3.43%
3.37%
Supplemental
data
Net
assets,
end
of
period
(000’s)
.................................
$15,190
$14,297
$8,396
$7,678
Portfolio
turnover
rate
.........................................
13.43%
15.00%
10.85%
16.78%
a
For
the
year
ended
February
29.
b
For
the
period
August
1,
2017
(effective
date)
to
February
28,
2018.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
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Trust
Financial
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Colorado
Tax-Free
Income
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statements.
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a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
2019
2018
2017
2016
a
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$11.96
$11.31
$11.32
$11.66
$11.94
$12.13
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.16
0.35
0.38
0.39
0.45
0.47
Net
realized
and
unrealized
gains
(losses)
(0.19)
0.66
(—)
d
(0.33)
(0.28)
(0.19)
Total
from
investment
operations
........
(0.03)
1.01
0.38
0.06
0.17
0.28
Less
distributions
from:
Net
investment
income
..............
(0.16)
(0.36)
(0.39)
(0.40)
(0.45)
(0.47)
Net
asset
value,
end
of
period
..........
$11.77
$11.96
$11.31
$11.32
$11.66
$11.94
Total
return
e
.......................
(0.23)%
9.06%
3.38%
0.48%
1.41%
2.36%
Ratios
to
average
net
assets
f
Expenses
.........................
0.58%
g
0.59%
g
0.59%
g
0.58%
h
0.55%
0.55%
Net
investment
income
...............
2.77%
2.97%
3.39%
3.33%
3.77%
3.97%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$122,855
$115,924
$92,530
$79,093
$73,538
$50,589
Portfolio
turnover
rate
................
13.43%
15.00%
10.85%
16.78%
13.61%
5.17%
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
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
Statement
of
Investments
(unaudited),
August
31,
2020
Franklin
Colorado
Tax-Free
Income
Fund
franklintempleton.com
Semiannual
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
96.3%
Colorado
96.1%
Adams
&
Weld
Counties
School
District
No.
27J
Brighton
,
GO
,
2015
,
5
%
,
12/01/40
..
$
7,500,000
$
9,010,275
Adams
12
Five
Star
Schools
,
GO
,
2016B
,
Refunding
,
5
%
,
12/15/36
..............
5,000,000
6,133,650
Adams
State
University
,
Revenue,
2012,
Pre-Refunded,
5%,
5/15/37
..............................
370,000
397,668
Revenue,
2012,
5%,
5/15/37
.........................................
630,000
667,926
Revenue,
2019
A,
Refunding,
4%,
5/15/42
...............................
1,515,000
1,737,675
Anthem
West
Metropolitan
District
,
GO
,
2015
,
Refunding
,
BAM
Insured
,
5
%
,
12/01/35
3,000,000
3,595,620
Arapahoe
County
School
District
No.
1
Englewood
,
GO
,
2017
,
5
%
,
12/01/42
.......
7,000,000
8,499,470
Arapahoe
County
School
District
No.
6
Littleton
,
GO
,
2019A
,
5.5
%
,
12/01/43
.......
12,980,000
16,809,100
Arapahoe
County
Water
&
Wastewater
Authority
,
Revenue
,
2019
,
Refunding
,
4
%
,
12/01/37
........................................................
1,000,000
1,221,060
Auraria
Higher
Education
Center
,
Revenue
,
2013A
,
AGMC
Insured
,
5
%
,
4/01/34
....
6,150,000
6,813,277
Board
of
Governors
of
Colorado
State
University
System
,
Revenue,
2013A,
Refunding,
5%,
3/01/43
...............................
5,000,000
7,297,950
Revenue,
Pre-Refunded,
5%,
3/01/44
..................................
5,135,000
5,745,100
Revenue,
2015A,
Pre-Refunded,
5%,
3/01/40
.............................
3,990,000
4,815,172
Revenue,
2015A,
5%,
3/01/40
........................................
3,010,000
3,380,651
Revenue,
2016B,
Refunding,
5%,
3/01/41
...............................
1,000,000
1,171,630
Revenue,
2017E,
Refunding,
4%,
3/01/43
...............................
4,500,000
5,132,205
Revenue,
2019A,
Refunding,
5%,
3/01/49
...............................
4,000,000
5,072,680
Revenue,
A,
Refunding,
4%,
3/01/40
...................................
5,000,000
5,697,200
Board
of
Water
Commissioners
City
&
County
of
Denver
(The)
,
Revenue
,
2017A
,
5
%
,
9/15/47
.........................................................
10,000,000
12,343,800
Boulder
Valley
School
District
No.
Re-2
Boulder
,
GO
,
2015
,
5
%
,
12/01/41
.........
5,000,000
5,919,000
Centennial
Water
&
Sanitation
District
,
Revenue,
2019,
5%,
12/01/43
........................................
3,000,000
3,783,030
Revenue,
2019,
5.25%,
12/01/48
......................................
6,760,000
8,572,288
City
&
County
of
Denver
,
Revenue,
2016
A,
Refunding,
4%,
8/01/46
...............................
3,500,000
3,665,585
Revenue,
2018
A-1,
5%,
8/01/48
......................................
5,000,000
5,901,900
Airport
System,
Revenue,
2013B,
5%,
11/15/43
...........................
5,000,000
5,485,800
Airport
System,
Revenue,
2018
B,
Refunding,
5%,
12/01/43
..................
5,000,000
6,089,350
Airport
System,
Revenue,
2018
B,
Refunding,
5%,
12/01/48
..................
4,440,000
5,374,620
Airport
System,
Revenue,
2019
C,
Refunding,
5%,
11/15/35
..................
3,000,000
3,828,600
City
of
Aurora
,
Water,
Revenue,
First
Lien,
2016,
Refunding,
5%,
8/01/41
...................
3,000,000
3,638,730
Water,
Revenue,
First
Lien,
2016,
Refunding,
5%,
8/01/46
...................
5,000,000
5,995,100
City
of
Colorado
Springs
,
Utilities
System,
Revenue,
2010D-1,
Pre-Refunded,
5.25%,
11/15/33
...........
5,000,000
5,051,450
Utilities
System,
Revenue,
2013B-1,
5%,
11/15/38
.........................
4,000,000
4,528,760
Utilities
System,
Revenue,
2014A-2,
5%,
11/15/44
.........................
5,000,000
5,832,100
Utilities
System,
Revenue,
2015A,
Refunding,
5%,
11/15/40
..................
3,000,000
3,588,270
Utilities
System,
Revenue,
2015A,
Refunding,
5%,
11/15/45
..................
2,665,000
3,160,877
Utilities
System,
Revenue,
2017A-2,
Refunding,
5%,
11/15/47
................
6,000,000
7,390,860
Utilities
System,
Revenue,
2018
A-4,
5%,
11/15/48
.........................
5,000,000
6,304,300
City
of
Commerce
City
,
Revenue
,
2016
,
AGMC
Insured
,
5
%
,
8/01/41
.............
4,000,000
4,844,000
City
of
Fort
Collins
,
Electric
Utility
Enterprise
,
Revenue
,
2018A
,
5
%
,
12/01/42
......
13,500,000
16,801,695
City
of
Grand
Junction
,
Revenue,
2020
B,
4%,
3/01/45
........................................
1,500,000
1,759,725
Revenue,
2020
B,
4%,
3/01/49
........................................
1,240,000
1,447,650
Colorado
Educational
&
Cultural
Facilities
Authority
,
Alexander
Dawson
School
LLC,
Revenue,
2010,
5%,
2/15/40
.................
5,280,000
5,297,582
Union
Colony
Schools,
Revenue,
2018,
Refunding,
5%,
4/01/48
...............
715,000
833,125
University
of
Denver,
Revenue,
2017,
5%,
3/01/47
.........................
3,950,000
4,596,892
West
Ridge
Academy
Charter
School,
Revenue,
2019A,
Refunding,
5%,
6/01/49
..
400,000
434,116
Windsor
Charter
Academy,
Revenue,
2020,
Refunding,
4%,
9/01/50
............
1,400,000
1,572,858
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Colorado
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
61
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Colorado
(continued)
Colorado
Health
Facilities
Authority
,
Revenue,
2010-A,
6%,
10/01/35
.......................................
$
4,010,000
$
4,028,767
Revenue,
2010-A,
Pre-Refunded,
6%,
10/01/35
...........................
1,450,000
1,456,713
Adventist
Health
System/Sunbelt
Obligated
Group,
Revenue,
2016A,
Refunding,
4%,
11/15/41
.......................................................
3,000,000
3,288,930
Adventist
Health
System/Sunbelt
Obligated
Group,
Revenue,
2019
A,
Refunding,
5%,
11/15/37
.......................................................
5,000,000
6,362,700
Boulder
Community
Health
Obligated
Group,
Revenue,
2010-A,
Pre-Refunded,
6%,
10/01/35
.......................................................
40,000
40,185
Boulder
Community
Health
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
10/01/35
.......................................................
1,575,000
1,820,527
Boulder
Community
Health
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
10/01/37
.......................................................
850,000
978,401
Boulder
Community
Health
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
10/01/38
.......................................................
705,000
808,713
Boulder
Community
Health
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
10/01/39
.......................................................
835,000
953,971
Boulder
Community
Health
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
10/01/40
.......................................................
725,000
825,057
BSLC
Obligated
Group,
Revenue,
2018
A-1,
Refunding,
5%,
9/15/48
...........
3,000,000
3,219,330
Children's
Hospital
Colorado
Obligated
Group,
Revenue,
2016A,
5%,
12/01/44
....
5,000,000
5,756,100
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-2,
Refunding,
5%,
8/01/37
3,000,000
3,680,790
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-2,
Refunding,
5%,
8/01/39
2,000,000
2,435,820
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-2,
Refunding,
4%,
8/01/49
5,000,000
5,512,200
Covenant
Retirement
Communities
Obligated
Group,
Revenue,
2013A,
5.75%,
12/01/36
.......................................................
5,000,000
5,435,100
Covenant
Retirement
Communities
Obligated
Group,
Revenue,
2015A,
Refunding,
5%,
12/01/35
...................................................
7,150,000
7,718,854
Covenant
Retirement
Communities
Obligated
Group,
Revenue,
2018
A,
5%,
12/01/48
.......................................................
5,000,000
5,471,200
Evangelical
Lutheran
Good
Samaritan
Obligated
Group,
Revenue,
2012,
Pre-
Refunded,
5%,
12/01/33
...........................................
2,500,000
2,707,800
Evangelical
Lutheran
Good
Samaritan
Obligated
Group,
Revenue,
2013,
Pre-
Refunded,
5.5%,
6/01/33
..........................................
1,000,000
1,143,340
Evangelical
Lutheran
Good
Samaritan
Obligated
Group,
Revenue,
2013,
Pre-
Refunded,
5.625%,
6/01/43
.........................................
4,000,000
4,587,040
Evangelical
Lutheran
Good
Samaritan
Obligated
Group,
Revenue,
2015A,
Pre-
Refunded,
5%,
6/01/40
............................................
4,000,000
4,872,800
Evangelical
Lutheran
Good
Samaritan
Obligated
Group,
Revenue,
2015A,
Pre-
Refunded,
5%,
6/01/45
............................................
2,750,000
3,350,050
Evangelical
Lutheran
Good
Samaritan
Obligated
Group,
Revenue,
2017,
Pre-
Refunded,
5%,
6/01/47
............................................
6,000,000
7,779,900
Parkview
Medical
Center,
Inc.
Obligated
Group,
Revenue,
2016,
5%,
9/01/46
.....
5,000,000
5,656,800
Parkview
Medical
Center,
Inc.
Obligated
Group,
Revenue,
2020A,
4%,
9/01/50
....
6,275,000
6,847,406
Sanford
Obligated
Group,
Revenue,
2019A,
Refunding,
5%,
11/01/44
...........
10,455,000
12,888,192
Sisters
of
Charity
of
Leavenworth
Health
System,
Inc.
Obligated
Group,
Revenue,
2019
A,
Refunding,
4%,
1/01/38
.....................................
3,660,000
4,266,059
Valley
View
Hospital
Association,
Revenue,
2015,
5%,
5/15/40
................
2,000,000
2,250,500
Valley
View
Hospital
Association,
Revenue,
2015,
5%,
5/15/45
................
1,000,000
1,117,580
Colorado
High
Performance
Transportation
Enterprise
,
Revenue
,
2017
,
5
%
,
12/31/47
2,555,000
2,770,003
Colorado
Housing
and
Finance
Authority
,
Revenue,
2019
B-1,
I,
3.15%,
10/01/44
.................................
1,000,000
1,060,100
Revenue,
2019
B-1,
I,
3.25%,
10/01/49
.................................
1,000,000
1,057,760
Colorado
Mesa
University
,
Revenue,
2016,
5%,
5/15/45
.........................................
4,000,000
4,661,400
Revenue,
2019
B,
5%,
5/15/44
........................................
1,000,000
1,247,410
Revenue,
2019
B,
5%,
5/15/49
........................................
1,565,000
1,940,412
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Colorado
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Semiannual
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)
Colorado
(continued)
Colorado
School
of
Mines
,
Revenue,
2012
B,
5%,
12/01/32
.......................................
$
110,000
$
119,675
Revenue,
2017
A,
5%,
12/01/42
.......................................
2,450,000
2,911,310
Revenue,
2017
A,
5%,
12/01/47
.......................................
3,000,000
3,541,650
Colorado
Water
Resources
&
Power
Development
Authority
,
Revenue,
2011C,
5%,
9/01/36
........................................
1,900,000
1,984,740
Revenue,
2013A,
AGMC
Insured,
5%,
9/01/38
............................
1,210,000
1,309,438
Commerce
City
,
Northern
Infrastructure
General
Improvement
District
,
GO
,
2013
,
Refunding
,
AGMC
Insured
,
5
%
,
12/01/31
................................
2,040,000
2,245,836
Consolidated
Bell
Mountain
Ranch
Metropolitan
District
,
GO
,
2010
,
Pre-Refunded
,
AGMC
Insured
,
5
%
,
12/01/39
.........................................
3,160,000
3,196,814
County
of
Pueblo
,
COP
,
2012
,
AGMC
Insured
,
5
%
,
9/15/42
....................
10,000,000
10,799,200
Denver
City
&
County
School
District
No.
1
,
COP,
2013C,
5%,
12/15/30
..........................................
4,000,000
4,555,960
COP,
2020
A,
5%,
12/01/42
..........................................
2,000,000
2,601,420
GO,
2017,
5%,
12/01/41
.............................................
12,440,000
15,171,326
Denver
Convention
Center
Hotel
Authority
,
Revenue,
Senior
Lien
,
2016
,
Refunding
,
5
%
,
12/01/40
.....................................................
9,775,000
10,391,118
Denver
Health
&
Hospital
Authority
,
COP,
2018,
5%,
12/01/48
............................................
5,255,000
5,949,764
Revenue,
2010,
Pre-Refunded,
5.5%,
12/01/30
...........................
1,500,000
1,519,335
Revenue,
2010,
Pre-Refunded,
5.625%,
12/01/40
.........................
4,000,000
4,052,800
Revenue,
2014A,
5.25%,
12/01/45
.....................................
9,250,000
9,896,482
Revenue,
2019
A,
Refunding,
5%,
12/01/30
..............................
1,000,000
1,215,790
Revenue,
2019
A,
Refunding,
5%,
12/01/31
..............................
1,400,000
1,687,434
Revenue,
2019
A,
Refunding,
5%,
12/01/33
..............................
3,300,000
3,913,932
Denver
International
Business
Center
Metropolitan
District
No.
1
,
GO
,
2019
A
,
4
%
,
12/01/48
........................................................
350,000
356,633
Eagle
River
Water
and
Sanitation
District
,
GO,
2016,
5%,
12/01/45
.............................................
1,360,000
1,644,090
Revenue,
2012,
Pre-Refunded,
5%,
12/01/42
.............................
3,500,000
3,868,130
Revenue,
2020
A,
AGMC
Insured,
4%,
12/01/49
...........................
7,200,000
8,467,776
Flying
Horse
Metropolitan
District
No.
2
,
GO,
2020
A,
Refunding,
AGMC
Insured,
4%,
12/01/44
......................
520,000
606,206
GO,
2020
A,
Refunding,
AGMC
Insured,
4%,
12/01/50
......................
875,000
1,016,785
Ignacio
School
District
11JT
,
GO
,
2012
,
Pre-Refunded
,
5
%
,
12/01/31
.............
1,215,000
1,287,135
Larimer
County
School
District
No.
R-1
Poudre
,
GO
,
2018
,
5
%
,
12/15/40
..........
5,000,000
6,356,100
Meridian
Metropolitan
District
,
GO
,
2011
A
,
Pre-Refunded
,
5
%
,
12/01/41
..........
5,000,000
5,287,150
Metropolitan
State
University
of
Denver
,
Revenue
,
2016
,
5
%
,
12/01/45
...........
4,000,000
4,641,400
Park
70
Metropolitan
District
,
GO,
2016,
Refunding,
5%,
12/01/36
....................................
1,000,000
1,135,380
GO,
2016,
Refunding,
5%,
12/01/46
....................................
1,500,000
1,684,980
Park
Creek
Metropolitan
District
,
Revenue,
2011A,
Pre-Refunded,
AGMC
Insured,
6%,
12/01/38
...............
2,500,000
2,535,800
Revenue,
2011A,
Pre-Refunded,
AGMC
Insured,
6.125%,
12/01/41
............
2,500,000
2,536,575
Revenue,
2017A,
5%,
12/01/41
.......................................
3,000,000
3,472,710
Revenue,
2017A,
5%,
12/01/46
.......................................
2,500,000
2,877,700
Revenue,
Senior
Lien,
2015
A,
Refunding,
5%,
12/01/45
....................
7,000,000
8,061,340
Revenue,
Senior
Lien,
2018A,
5%,
12/01/46
..............................
2,875,000
3,461,816
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Colorado
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
63
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Colorado
(continued)
Parker
Water
&
Sanitation
District
,
Revenue
,
2018
,
5
%
,
11/01/42
................
$
6,475,000
$
8,006,597
Platte
River
Power
Authority
,
Revenue
,
II
,
5
%
,
6/01/37
........................
12,000,000
12,905,520
Poudre
Tech
Metropolitan
District
,
GO
,
2010A
,
Refunding
,
AGMC
Insured
,
5
%
,
12/01/39
........................................................
7,435,000
7,523,551
Public
Authority
for
Colorado
Energy
,
Revenue
,
2008
,
6.5
%
,
11/15/38
............
9,900,000
15,784,857
Pueblo
City
Schools
,
GO
,
2020
,
5
%
,
12/15/38
..............................
3,000,000
3,912,990
Pueblo
Urban
Renewal
Authority
,
Revenue,
2011-B,
Pre-Refunded,
5.25%,
12/01/28
.........................
1,000,000
1,062,480
Revenue,
2011-B,
Pre-Refunded,
5.5%,
12/01/31
..........................
1,010,000
1,076,246
Revenue,
2011-B,
Pre-Refunded,
5.25%,
12/01/38
.........................
3,615,000
3,840,865
Regional
Transportation
District
Sales
Tax
,
Revenue,
2016
A,
5%,
11/01/41
.......................................
10,000,000
11,911,100
Revenue,
2016
A,
5%,
11/01/46
.......................................
11,000,000
13,003,430
Roaring
Fork
Transportation
Authority
,
Revenue
,
2019
,
Refunding
,
4
%
,
12/01/44
....
1,000,000
1,169,420
South
Timnath
Metropolitan
District
No.
2
,
GO
,
2016
,
Refunding
,
5
%
,
12/01/42
.....
5,690,000
6,456,045
State
of
Colorado
,
COP,
2011G,
Pre-Refunded,
5%,
3/15/32
................................
10,000,000
10,257,600
COP,
2013I,
Pre-Refunded,
5%,
3/15/36
.................................
3,000,000
3,480,630
COP,
2017
J,
5.25%,
3/15/42
.........................................
5,000,000
6,109,400
COP,
2019
O,
4%,
3/15/44
...........................................
5,000,000
5,627,900
COP,
2020,
Refunding,
4%,
6/15/39
....................................
1,000,000
1,183,840
COP,
2020,
Refunding,
4%,
6/15/40
....................................
1,315,000
1,550,806
COP,
2020,
Refunding,
4%,
6/15/41
....................................
1,275,000
1,498,393
COP,
2020
A,
4%,
12/15/39
..........................................
2,750,000
3,310,697
University
of
Colorado,
COP,
2013A,
Refunding,
5%,
11/01/29
................
3,105,000
3,513,773
Sterling
Hills
West
Metropolitan
District
,
GO
,
2017
,
Refunding
,
5
%
,
12/01/39
.......
1,125,000
1,307,408
Thompson
Crossing
Metropolitan
District
No.
2
,
GO
,
2016B
,
Refunding
,
AGMC
Insured
,
5
%
,
12/01/46
..............................................
4,500,000
5,383,620
Town
of
Castle
Rock
,
Revenue,
2013,
5%,
6/01/31
.........................................
1,800,000
2,009,916
Revenue,
2013,
5%,
6/01/32
.........................................
1,845,000
2,058,005
Revenue,
2013,
5%,
6/01/35
.........................................
2,775,000
3,090,573
Town
of
Firestone
,
Water
Enterprise
,
Revenue
,
2020
,
Refunding
,
BAM
Insured
,
4
%
,
12/01/49
........................................................
1,400,000
1,669,220
University
of
Colorado
,
Revenue,
2015A,
Pre-Refunded,
5%,
6/01/38
.............................
5,655,000
6,918,836
Revenue,
2018
B,
5%,
6/01/48
........................................
5,000,000
6,185,700
Revenue,
2019B,
Refunding,
5%,
6/01/44
...............................
3,385,000
4,304,163
Revenue,
2019B,
Refunding,
5%,
6/01/49
...............................
3,295,000
4,164,353
University
of
Northern
Colorado
,
Revenue
,
2011A
,
Pre-Refunded
,
5
%
,
6/01/30
.....
1,690,000
1,750,536
Vauxmont
Metropolitan
District
,
GO,
2019,
Refunding,
AGMC
Insured,
5%,
12/15/27
........................
380,000
451,835
GO,
2019,
Refunding,
AGMC
Insured,
5%,
12/15/32
........................
480,000
560,899
Weld
County
School
District
No.
6
Greeley
,
GO
,
2020
,
5
%
,
12/01/40
.............
8,750,000
11,381,388
Weld
County
School
District
No.
RE-4
,
GO
,
2016
,
5.25
%
,
12/01/41
..............
5,000,000
6,240,500
Winter
Farm
Metropolitan
District
No.
2
,
GO,
2019,
Refunding,
AGMC
Insured,
5%,
12/01/39
........................
630,000
780,053
GO,
2019,
Refunding,
AGMC
Insured,
5%,
12/01/44
........................
500,000
611,620
Woodmoor
Water
&
Sanitation
District
No.
1
,
Revenue
,
2011
,
5
%
,
12/01/36
........
5,000,000
5,277,250
700,932,027
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Colorado
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
64
s
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
U.S.
Territories
0.2%
Guam
0.2%
Guam
Government
Waterworks
Authority
,
Revenue
,
2020
A
,
5
%
,
1/01/50
.........
$
1,500,000
$
1,825,890
Total
Municipal
Bonds
(Cost
$650,350,374)
.....................................
702,757,917
a
a
a
a
Short
Term
Investments
0.5%
Municipal
Bonds
0.5%
Colorado
0.5%
a
City
&
County
of
Denver
,
COP
,
2008A2
,
Refunding
,
SPA
JPMorgan
Chase
Bank
NA
,
Daily
VRDN
and
Put
,
0.02
%
,
12/01/29
..................................
1,500,000
1,500,000
a
Colorado
Educational
&
Cultural
Facilities
Authority
,
Michael
Ann
Russell
Jewish
Community
Center,
Inc.
,
Revenue
,
2012-B-5
,
LOC
TD
Bank
NA
,
Daily
VRDN
and
Put
,
0.02
%
,
1/01/39
................................................
2,480,000
2,480,000
3,980,000
Total
Municipal
Bonds
(Cost
$3,980,000)
.......................................
3,980,000
Total
Short
Term
Investments
(Cost
$3,980,000
)
.................................
3,980,000
a
Total
Investments
(Cost
$654,330,374)
96.8%
...................................
$706,737,917
Other
Assets,
less
Liabilities
3.2%
.............................................
22,806,228
Net
Assets
100.0%
...........................................................
$729,544,145
See
Abbreviations
on
page
155
.
a
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
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accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
65
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
Year
Ended
February
28,
2019
b
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
..........................................
$10.39
$10.05
$10.01
Income
from
investment
operations
c
:
Net
investment
income
d
..................................................
0.14
0.29
0.14
Net
realized
and
unrealized
gains
(losses)
....................................
(0.15)
0.36
0.04
Total
from
investment
operations
.............................................
(0.01)
0.65
0.18
Less
distributions
from:
Net
investment
income
...................................................
(0.14)
(0.31)
(0.14)
Net
asset
value,
end
of
period
...............................................
$10.24
$10.39
$10.05
Total
return
e
............................................................
(0.11)%
6.54%
1.86%
Ratios
to
average
net
assets
f
Expenses
g
.............................................................
0.94%
0.93%
0.92%
Net
investment
income
....................................................
2.71%
2.83%
2.98%
Supplemental
data
Net
assets,
end
of
period
(000’s)
.............................................
$26,097
$21,670
$13,765
Portfolio
turnover
rate
.....................................................
9.42%
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)
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accompanying
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integral
part
of
these
financial
statements.
66
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
2019
2018
2017
2016
a
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$10.38
$10.04
$10.08
$10.42
$10.69
$10.86
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.15
0.30
0.31
0.32
0.37
0.39
Net
realized
and
unrealized
gains
(losses)
(0.16)
0.36
(0.03)
(0.32)
(0.28)
(0.17)
Total
from
investment
operations
........
(0.01)
0.66
0.28
—
0.09
0.22
Less
distributions
from:
Net
investment
income
..............
(0.14)
(0.32)
(0.32)
(0.34)
(0.36)
(0.39)
Net
asset
value,
end
of
period
..........
$10.23
$10.38
$10.04
$10.08
$10.42
$10.69
Total
return
d
.......................
(0.03)%
6.70%
2.86%
0.03%
0.82%
2.09%
Ratios
to
average
net
assets
e
Expenses
.........................
0.79%
f
0.78%
f
0.77%
f
0.74%
0.71%
0.69%
Net
investment
income
...............
2.88%
2.98%
3.13%
3.15%
3.42%
3.66%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$142,082
$150,081
$160,148
$187,638
$222,705
$253,012
Portfolio
turnover
rate
................
9.42%
11.63%
15.00%
4.27%
12.40%
7.86%
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,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Connecticut
Tax-Free
Income
Fund
(continued)
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accompanying
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are
an
integral
part
of
these
financial
statements.
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67
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
2019
2018
2017
2016
a
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$10.46
$10.13
$10.16
$10.50
$10.77
$10.93
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.12
0.25
0.26
0.27
0.31
0.33
Net
realized
and
unrealized
gains
(losses)
(0.14)
0.35
(0.02)
(0.32)
(0.28)
(0.16)
Total
from
investment
operations
........
(0.02)
0.60
0.24
(0.05)
0.03
0.17
Less
distributions
from:
Net
investment
income
..............
(0.12)
(0.27)
(0.27)
(0.29)
(0.30)
(0.33)
Net
asset
value,
end
of
period
..........
$10.32
$10.46
$10.13
$10.16
$10.50
$10.77
Total
return
d
.......................
(0.21)%
5.98%
2.37%
(0.52)%
0.25%
1.62%
Ratios
to
average
net
assets
e
Expenses
.........................
1.34%
f
1.33%
f
1.32%
f
1.29%
1.26%
1.24%
Net
investment
income
...............
2.32%
2.43%
2.58%
2.60%
2.87%
3.11%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$16,946
$20,421
$26,076
$45,183
$61,813
$68,311
Portfolio
turnover
rate
................
9.42%
11.63%
15.00%
4.27%
12.40%
7.86%
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,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Connecticut
Tax-Free
Income
Fund
(continued)
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The
accompanying
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are
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integral
part
of
these
financial
statements.
68
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
Year
Ended
February
28,
2018
b
2020
a
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
..............................
$10.38
$10.04
$10.08
$10.30
Income
from
investment
operations
c
:
Net
investment
income
d
......................................
0.15
0.32
0.33
0.20
Net
realized
and
unrealized
gains
(losses)
........................
(0.15)
0.36
(0.03)
(0.22)
Total
from
investment
operations
.................................
—
0.68
0.30
(0.02)
Less
distributions
from:
Net
investment
income
.......................................
(0.15)
(0.34)
(0.34)
(0.20)
Net
asset
value,
end
of
period
...................................
$10.23
$10.38
$10.04
$10.08
Total
return
e
................................................
0.04%
6.85%
2.99%
(0.19)%
Ratios
to
average
net
assets
f
Expenses
before
waiver
and
payments
by
affiliates
...................
0.70%
0.70%
0.65%
0.77%
Expenses
net
of
waiver
and
payments
by
affiliates
....................
0.64%
g
0.64%
g
0.63%
g
0.60%
Net
investment
income
........................................
3.01%
3.12%
3.27%
3.29%
Supplemental
data
Net
assets,
end
of
period
(000’s)
.................................
$326
$299
$147
$324
Portfolio
turnover
rate
.........................................
9.42%
11.63%
15.00%
4.27%
a
For
the
year
ended
February
29.
b
For
the
period
August
1,
2017
(effective
date)
to
February
28,
2018.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Connecticut
Tax-Free
Income
Fund
(continued)
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accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
69
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
2019
2018
2017
2016
a
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$10.37
$10.04
$10.08
$10.42
$10.68
$10.85
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.15
0.31
0.32
0.33
0.38
0.40
Net
realized
and
unrealized
gains
(losses)
(0.14)
0.35
(0.03)
(0.32)
(0.27)
(0.17)
Total
from
investment
operations
........
0.01
0.66
0.29
0.01
0.11
0.23
Less
distributions
from:
Net
investment
income
..............
(0.15)
(0.33)
(0.33)
(0.35)
(0.37)
(0.40)
Net
asset
value,
end
of
period
..........
$10.23
$10.37
$10.04
$10.08
$10.42
$10.68
Total
return
d
.......................
0.12%
6.71%
2.96%
0.13%
1.01%
2.19%
Ratios
to
average
net
assets
e
Expenses
.........................
0.69%
f
0.68%
f
0.67%
f
0.64%
0.61%
0.59%
Net
investment
income
...............
2.98%
3.08%
3.23%
3.25%
3.52%
3.76%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$19,934
$20,024
$19,351
$20,855
$26,253
$21,254
Portfolio
turnover
rate
................
9.42%
11.63%
15.00%
4.27%
12.40%
7.86%
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
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited),
August
31,
2020
Franklin
Connecticut
Tax-Free
Income
Fund
franklintempleton.com
Semiannual
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
98.5%
Connecticut
98.5%
City
of
Bridgeport
,
GO,
Pre-Refunded,
5%,
2/15/32
.......................................
$
10,000,000
$
10,691,400
City
of
New
Britain
,
GO
,
2017
C
,
AGMC
Insured
,
5
%
,
3/01/36
..................
1,000,000
1,204,540
City
of
New
Haven
,
GO
,
2002C
,
NATL
Insured
,
ETM,
5
%
,
11/01/22
..............
25,000
25,091
City
of
Stamford
,
Water
Pollution
Control
System
&
Facility
,
Revenue
,
2013A
,
5.25
%
,
8/15/43
.........................................................
1,000,000
1,132,970
Connecticut
Housing
Finance
Authority
,
Revenue,
10,
5%,
6/15/28
...........................................
420,000
421,499
Revenue,
13,
5%,
6/15/40
...........................................
1,500,000
1,505,325
Revenue,
2020
C-2,
Refunding,
2.2%,
11/15/34
...........................
1,250,000
1,233,300
Revenue,
2020C-1,
Refunding,
2.05%,
5/15/37
...........................
1,400,000
1,395,072
Revenue,
E-E1,
3.05%,
11/15/44
......................................
5,000,000
5,265,600
Revenue,
E-E1,
3.1%,
11/15/49
.......................................
2,000,000
2,094,100
Connecticut
Municipal
Electric
Energy
Cooperative
,
Revenue
,
2013A
,
5
%
,
1/01/38
..
3,000,000
3,275,520
Connecticut
State
Health
&
Educational
Facilities
Authority
,
Choate
Rosemary
Hall
Foundation,
Inc.
(The),
Revenue,
F,
Refunding,
4%,
7/01/34
345,000
429,166
Choate
Rosemary
Hall
Foundation,
Inc.
(The),
Revenue,
F,
Refunding,
4%,
7/01/35
310,000
382,906
Choate
Rosemary
Hall
Foundation,
Inc.
(The),
Revenue,
F,
Refunding,
4%,
7/01/36
480,000
590,064
Choate
Rosemary
Hall
Foundation,
Inc.
(The),
Revenue,
F,
Refunding,
4%,
7/01/37
300,000
367,371
Choate
Rosemary
Hall
Foundation,
Inc.
(The),
Revenue,
F,
Refunding,
4%,
7/01/38
315,000
385,046
Choate
Rosemary
Hall
Foundation,
Inc.
(The),
Revenue,
F,
Refunding,
4%,
7/01/39
380,000
462,620
Choate
Rosemary
Hall
Foundation,
Inc.
(The),
Revenue,
F,
Refunding,
4%,
7/01/42
860,000
1,038,897
Connecticut
College,
Revenue,
L-1,
Refunding,
4%,
7/01/46
..................
5,000,000
5,411,300
Connecticut
State
University
System,
Revenue,
N,
5%,
11/01/29
..............
5,060,000
5,697,358
Covenant
Retirement
Communities
Obligated
Group,
Revenue,
2018
B,
5%,
12/01/40
.......................................................
4,000,000
4,431,640
Fairfield
University,
Revenue,
Q-1,
5%,
7/01/46
...........................
9,000,000
10,231,290
Hartford
HealthCare
Obligated
Group,
Revenue,
2011A,
Pre-Refunded,
5%,
7/01/41
12,000,000
12,466,440
Nuvance
Health
Obligated
Group,
Revenue,
2019
A,
Refunding,
4%,
7/01/38
.....
1,000,000
1,104,640
Nuvance
Health
Obligated
Group,
Revenue,
2019
A,
Refunding,
4%,
7/01/41
.....
3,105,000
3,399,820
Quinnipiac
University,
Revenue,
L,
Refunding,
5%,
7/01/45
..................
8,250,000
9,140,505
Sacred
Heart
University,
Inc.,
Revenue,
2011G,
Pre-Refunded,
5.375%,
7/01/31
..
1,500,000
1,564,905
Sacred
Heart
University,
Inc.,
Revenue,
2011G,
Pre-Refunded,
5.625%,
7/01/41
..
5,500,000
5,749,370
Sacred
Heart
University,
Inc.,
Revenue,
2012H,
Pre-Refunded,
AGMC
Insured,
5%,
7/01/28
........................................................
2,290,000
2,491,634
Sacred
Heart
University,
Inc.,
Revenue,
I-1,
Refunding,
5%,
7/01/42
............
4,375,000
5,050,675
Stamford
Hospital
Obligated
Group
(The),
Revenue,
2010-1,
5%,
7/01/30
........
5,000,000
5,115,650
Stamford
Hospital
Obligated
Group
(The),
Revenue,
J,
5%,
7/01/42
............
5,000,000
5,220,850
Trinity
College,
Inc.,
Revenue,
R,
Refunding,
4%,
6/01/45
....................
2,500,000
2,839,925
Trinity
Health
Corp.
Obligated
Group,
Revenue,
2016,
5%,
12/01/41
............
5,000,000
5,871,250
Western
Connecticut
Health
Obligated
Group,
Revenue,
2011
M,
Pre-Refunded,
5.375%,
7/01/41
.................................................
7,000,000
7,299,880
Yale-New
Haven
Health
Obligated
Group,
Revenue,
N,
5%,
7/01/48
............
5,000,000
5,383,650
Connecticut
State
Higher
Education
Supplement
Loan
Authority
,
Revenue,
2020
B,
3.25%,
11/15/36
....................................
1,700,000
1,702,227
Revenue,
2020
D,
Refunding,
3%,
11/15/35
..............................
1,145,000
1,154,744
Connecticut
Transmission
Municipal
Electric
Energy
Cooperative
,
Revenue
,
2012A
,
5
%
,
1/01/42
......................................................
5,000,000
5,260,600
Metropolitan
District
(The)
,
Revenue,
2013A,
Pre-Refunded,
5%,
4/01/36
.............................
5,000,000
5,376,050
Revenue,
2014A,
5%,
11/01/42
.......................................
5,000,000
5,736,950
South
Central
Connecticut
Regional
Water
Authority
,
Revenue,
A-THIRTIETH,
Pre-Refunded,
5%,
8/01/39
.......................
1,500,000
1,774,110
Revenue,
A-THIRTIETH,
Pre-Refunded,
5%,
8/01/44
.......................
1,615,000
1,910,125
Revenue,
Second
Series,
B-THIRTY
SECOND,
Refunding,
5%,
8/01/38
.........
1,720,000
2,076,384
State
of
Connecticut
,
GO,
2020
A,
4%,
1/15/36
............................................
5,000,000
5,898,050
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Connecticut
Tax-Free
Income
Fund
(continued)
franklintempleton.com
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accompanying
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are
an
integral
part
of
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financial
statements.
Semiannual
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71
s
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Connecticut
(continued)
State
of
Connecticut,
(continued)
GO,
2020
A,
4%,
1/15/38
............................................
$
2,250,000
$
2,634,120
GO,
2020
C,
4%,
6/01/39
............................................
600,000
703,020
Special
Tax,
2013,
5%,
10/01/30
......................................
5,000,000
5,653,000
Special
Tax,
2016A,
5%,
9/01/33
......................................
1,000,000
1,210,610
Special
Tax,
2018
A,
5%,
1/01/36
......................................
1,000,000
1,226,830
Special
Tax,
2020
A,
4%,
5/01/39
......................................
1,000,000
1,161,160
Bradley
International
Airport
CFC,
Revenue,
2019
A,
5%,
7/01/49
..............
1,400,000
1,659,000
Clean
Water
Fund
-
State
Revolving
Fund,
Revenue,
2015A,
5%,
3/01/34
.......
5,000,000
5,944,400
Clean
Water
Fund
-
State
Revolving
Fund,
Revenue,
2015A,
5%,
3/01/35
.......
1,000,000
1,187,420
Clean
Water
Fund
-
State
Revolving
Fund,
Revenue,
2017A,
5%,
5/01/37
.......
3,000,000
3,716,430
Town
of
Darien
,
GO
,
2020
A
,
Refunding
,
4
%
,
8/01/39
........................
350,000
414,946
Town
of
Stratford
,
GO
,
2017
,
AGMC
Insured
,
5
%
,
7/01/33
.....................
1,000,000
1,187,130
University
of
Connecticut
,
Revenue,
2013A,
5%,
8/15/28
........................................
6,590,000
7,379,087
Revenue,
2014
A,
5%,
2/15/31
........................................
2,000,000
2,248,180
Revenue,
2017
A,
5%,
1/15/37
........................................
4,000,000
4,769,520
202,355,362
Total
Municipal
Bonds
(Cost
$190,623,959)
.....................................
202,355,362
a
a
a
a
Short
Term
Investments
0.7%
Municipal
Bonds
0.7%
Connecticut
0.7%
a
Connecticut
State
Health
&
Educational
Facilities
Authority
,
Yale
University,
Revenue,
2001
V-1,
Daily
VRDN
and
Put,
0.01%,
7/01/36
.......
1,200,000
1,200,000
Yale
University,
Revenue,
2001
V-2,
Daily
VRDN
and
Put,
0.01%,
7/01/36
.......
300,000
300,000
1,500,000
Total
Municipal
Bonds
(Cost
$1,500,000)
.......................................
1,500,000
Total
Short
Term
Investments
(Cost
$1,500,000
)
.................................
1,500,000
a
Total
Investments
(Cost
$192,123,959)
99.2%
...................................
$203,855,362
Other
Assets,
less
Liabilities
0.8%
.............................................
1,530,373
Net
Assets
100.0%
...........................................................
$205,385,735
See
Abbreviations
on
page
155
.
a
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
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Michigan
Tax-Free
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accompanying
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integral
part
of
these
financial
statements.
72
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
Year
Ended
February
28,
2019
b
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
..........................................
$12.03
$11.31
$11.19
Income
from
investment
operations
c
:
Net
investment
income
d
..................................................
0.14
0.29
0.15
Net
realized
and
unrealized
gains
(losses)
....................................
(0.10)
0.74
0.12
Total
from
investment
operations
.............................................
0.04
1.03
0.27
Less
distributions
from:
Net
investment
income
...................................................
(0.14)
(0.31)
(0.15)
Net
asset
value,
end
of
period
...............................................
$11.93
$12.03
$11.31
Total
return
e
............................................................
0.37%
9.19%
2.46%
Ratios
to
average
net
assets
f
Expenses
g
.............................................................
0.82%
0.82%
0.83%
Net
investment
income
....................................................
2.39%
2.51%
2.86%
Supplemental
data
Net
assets,
end
of
period
(000’s)
.............................................
$89,499
$74,740
$33,739
Portfolio
turnover
rate
.....................................................
2.50%
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)
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accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
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73
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
2019
2018
2017
2016
a
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$12.02
$11.30
$11.25
$11.52
$11.78
$12.02
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.15
0.31
0.34
0.36
0.40
0.42
Net
realized
and
unrealized
gains
(losses)
(0.10)
0.73
0.06
(0.26)
(0.25)
(0.25)
Total
from
investment
operations
........
0.05
1.04
0.40
0.10
0.15
0.17
Less
distributions
from:
Net
investment
income
..............
(0.15)
(0.32)
(0.35)
(0.37)
(0.41)
(0.41)
Net
asset
value,
end
of
period
..........
$11.92
$12.02
$11.30
$11.25
$11.52
$11.78
Total
return
d
.......................
0.45%
9.36%
3.59%
0.85%
1.24%
1.48%
Ratios
to
average
net
assets
e
Expenses
.........................
0.67%
f
0.67%
f
0.68%
f
0.67%
0.65%
0.64%
Net
investment
income
...............
2.55%
2.66%
3.01%
3.11%
3.43%
3.55%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$712,069
$731,568
$727,705
$797,935
$861,662
$896,978
Portfolio
turnover
rate
................
2.50%
4.08%
11.55%
12.74%
12.35%
12.04%
a
For
the
year
ended
February
29.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Michigan
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
74
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
2019
2018
2017
2016
a
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$12.21
$11.48
$11.43
$11.69
$11.95
$12.20
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.12
0.25
0.28
0.30
0.35
0.36
Net
realized
and
unrealized
gains
(losses)
(0.10)
0.74
0.05
(0.26)
(0.27)
(0.26)
Total
from
investment
operations
........
0.02
0.99
0.33
0.04
0.08
0.10
Less
distributions
from:
Net
investment
income
..............
(0.12)
(0.26)
(0.28)
(0.30)
(0.34)
(0.35)
Net
asset
value,
end
of
period
..........
$12.11
$12.21
$11.48
$11.43
$11.69
$11.95
Total
return
d
.......................
0.17%
8.74%
2.96%
0.36%
0.66%
0.83%
Ratios
to
average
net
assets
e
Expenses
.........................
1.22%
f
1.22%
f
1.23%
f
1.22%
1.20%
1.19%
Net
investment
income
...............
1.98%
2.11%
2.46%
2.56%
2.88%
3.00%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$66,204
$78,321
$80,062
$124,683
$142,248
$145,491
Portfolio
turnover
rate
................
2.50%
4.08%
11.55%
12.74%
12.35%
12.04%
a
For
the
year
ended
February
29.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Michigan
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
75
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
Year
Ended
February
28,
2018
b
2020
a
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
..............................
$12.07
$11.35
$11.29
$11.53
Income
from
investment
operations
c
:
Net
investment
income
d
......................................
0.16
0.33
0.35
0.22
Net
realized
and
unrealized
gains
(losses)
........................
(0.10)
0.73
0.07
(0.24)
Total
from
investment
operations
.................................
0.06
1.06
0.42
(0.02)
Less
distributions
from:
Net
investment
income
.......................................
(0.16)
(0.34)
(0.36)
(0.22)
Net
asset
value,
end
of
period
...................................
$11.97
$12.07
$11.35
$11.29
Total
return
e
................................................
0.52%
9.48%
3.79%
(0.21)%
Ratios
to
average
net
assets
f
Expenses
before
waiver
and
payments
by
affiliates
...................
0.55%
0.55%
0.57%
0.58%
Expenses
net
of
waiver
and
payments
by
affiliates
....................
0.53%
g
0.53%
g
0.54%
g
0.53%
Net
investment
income
........................................
2.68%
2.80%
3.15%
3.25%
Supplemental
data
Net
assets,
end
of
period
(000’s)
.................................
$4,632
$4,153
$3,042
$2,510
Portfolio
turnover
rate
.........................................
2.50%
4.08%
11.55%
12.74%
a
For
the
year
ended
February
29.
b
For
the
period
August
1,
2017
(effective
date)
to
February
28,
2018.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Michigan
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
76
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
2019
2018
2017
2016
a
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$12.06
$11.34
$11.29
$11.55
$11.81
$12.06
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.16
0.32
0.35
0.37
0.42
0.43
Net
realized
and
unrealized
gains
(losses)
(0.10)
0.74
0.06
(0.25)
(0.26)
(0.26)
Total
from
investment
operations
........
0.06
1.06
0.41
0.12
0.16
0.17
Less
distributions
from:
Net
investment
income
..............
(0.16)
(0.34)
(0.36)
(0.38)
(0.42)
(0.42)
Net
asset
value,
end
of
period
..........
$11.96
$12.06
$11.34
$11.29
$11.55
$11.81
Total
return
d
.......................
0.50%
9.44%
3.67%
1.03%
1.33%
1.50%
Ratios
to
average
net
assets
e
Expenses
.........................
0.57%
f
0.57%
f
0.58%
f
0.57%
0.55%
0.54%
Net
investment
income
...............
2.64%
2.76%
3.11%
3.21%
3.53%
3.65%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$88,612
$79,717
$63,190
$53,587
$67,672
$39,846
Portfolio
turnover
rate
................
2.50%
4.08%
11.55%
12.74%
12.35%
12.04%
a
For
the
year
ended
February
29.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited),
August
31,
2020
Franklin
Michigan
Tax-Free
Income
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
77
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
98.6%
Michigan
98.4%
Ann
Arbor
School
District
,
GO,
2015,
Refunding,
5%,
5/01/28
.....................................
$
1,000,000
$
1,200,180
GO,
2015,
Refunding,
5%,
5/01/29
.....................................
1,235,000
1,479,715
Byron
Center
Public
Schools
,
GO,
2017
I,
5%,
5/01/34
.............................................
1,000,000
1,235,690
GO,
2017
I,
5%,
5/01/35
.............................................
1,920,000
2,362,733
GO,
2017
I,
5%,
5/01/36
.............................................
650,000
797,680
GO,
2017
I,
5%,
5/01/37
.............................................
1,480,000
1,810,114
GO,
2017
I,
5%,
5/01/38
.............................................
1,330,000
1,622,693
GO,
2017
I,
5%,
5/01/39
.............................................
2,290,000
2,781,136
GO,
2017
I,
5%,
5/01/43
.............................................
2,250,000
2,708,033
GO,
2017
I,
5%,
5/01/47
.............................................
4,140,000
4,957,981
Caledonia
Community
Schools
,
GO
,
2015
,
Refunding
,
5
%
,
5/01/26
..............
1,000,000
1,243,990
Central
Michigan
University
,
Revenue,
2014,
Refunding,
5%,
10/01/30
................................
1,910,000
2,185,689
Revenue,
2014,
Refunding,
5%,
10/01/31
................................
1,055,000
1,204,979
Revenue,
2014,
Refunding,
5%,
10/01/34
................................
1,600,000
1,817,200
Revenue,
2014,
Refunding,
5%,
10/01/39
................................
2,000,000
2,255,720
Charter
Township
of
Bloomfield
,
GO,
2016,
Refunding,
5%,
5/01/29
.....................................
470,000
588,844
GO,
2016,
Refunding,
5%,
5/01/32
.....................................
1,000,000
1,240,840
Charter
Township
of
Commerce
,
GO
,
2016
,
Refunding
,
5
%
,
12/01/38
............
3,250,000
3,915,503
Chippewa
Valley
Schools
,
GO,
2013,
Refunding,
5%,
5/01/28
.....................................
6,075,000
6,817,608
GO,
2013,
Refunding,
5%,
5/01/29
.....................................
6,425,000
7,204,866
GO,
2013,
Refunding,
5%,
5/01/30
.....................................
6,420,000
7,192,005
GO,
2013,
Refunding,
5%,
5/01/31
.....................................
3,000,000
3,358,200
GO,
2013,
Refunding,
5%,
5/01/32
.....................................
6,590,000
7,373,090
City
of
Battle
Creek
,
Water
&
Wastewater
System
,
Revenue
,
2016
A
,
5
%
,
6/01/36
...
1,300,000
1,578,239
City
of
Detroit
,
Great
Lakes
Water
Authority
Sewage
Disposal
System,
Revenue,
Senior
Lien,
2012A,
Pre-Refunded,
AGMC
Insured,
5%,
7/01/39
.......................
5,000,000
5,440,250
Great
Lakes
Water
Authority
Water
Supply
System,
Revenue,
Second
Lien,
2003-B,
NATL
Insured,
5%,
7/01/34
.........................................
25,000
25,094
Great
Lakes
Water
Authority
Water
Supply
System,
Revenue,
Senior
Lien,
06A,
AGMC
Insured,
5%,
7/01/34
........................................
30,000
30,117
City
of
Grand
Rapids
,
Sanitary
Sewer
System,
Revenue,
2014,
Refunding,
5%,
1/01/28
..............
1,560,000
1,791,348
Sanitary
Sewer
System,
Revenue,
2014,
Refunding,
5%,
1/01/29
..............
1,000,000
1,148,300
Sanitary
Sewer
System,
Revenue,
2014,
Refunding,
5%,
1/01/31
..............
2,095,000
2,401,184
Sanitary
Sewer
System,
Revenue,
2014,
Refunding,
5%,
1/01/32
..............
1,175,000
1,345,046
Sanitary
Sewer
System,
Revenue,
2014,
Refunding,
5%,
1/01/33
..............
1,125,000
1,286,606
Sanitary
Sewer
System,
Revenue,
2014,
Refunding,
5%,
1/01/34
..............
1,000,000
1,142,940
Sanitary
Sewer
System,
Revenue,
2014,
Refunding,
5%,
1/01/35
..............
1,500,000
1,712,265
Sanitary
Sewer
System,
Revenue,
2014,
Refunding,
5%,
1/01/39
..............
880,000
1,003,279
Sanitary
Sewer
System,
Revenue,
2014,
Refunding,
5%,
1/01/44
..............
2,000,000
2,275,220
Sanitary
Sewer
System,
Revenue,
2016,
Refunding,
5%,
1/01/36
..............
1,250,000
1,508,413
Sanitary
Sewer
System,
Revenue,
2016,
Refunding,
5%,
1/01/38
..............
1,000,000
1,200,970
Sanitary
Sewer
System,
Revenue,
2018,
5%,
1/01/37
.......................
1,040,000
1,295,975
Sanitary
Sewer
System,
Revenue,
2018,
5%,
1/01/43
.......................
1,000,000
1,228,100
Sanitary
Sewer
System,
Revenue,
2018,
5%,
1/01/48
.......................
5,000,000
6,100,550
Sanitary
Sewer
System,
Revenue,
2020,
Refunding,
5%,
1/01/45
..............
1,500,000
1,916,940
Sanitary
Sewer
System,
Revenue,
2020,
Refunding,
4%,
1/01/50
..............
3,440,000
4,027,999
Water
Supply
System,
Revenue,
2016,
Refunding,
5%,
1/01/41
...............
2,190,000
2,617,598
Water
Supply
System,
Revenue,
2016,
Refunding,
5%,
1/01/46
...............
2,525,000
2,996,468
Water
Supply
System,
Revenue,
2018,
Refunding,
5%,
1/01/43
...............
1,500,000
1,842,150
Water
Supply
System,
Revenue,
2018,
Refunding,
5%,
1/01/48
...............
2,000,000
2,440,220
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Michigan
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
78
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Michigan
(continued)
City
of
Grand
Rapids,
(continued)
Water
Supply
System,
Revenue,
2020,
5%,
1/01/40
........................
$
2,240,000
$
2,900,083
Water
Supply
System,
Revenue,
2020,
5%,
1/01/45
........................
2,425,000
3,099,053
Water
Supply
System,
Revenue,
2020,
5%,
1/01/50
........................
3,000,000
3,811,080
County
of
Kent
,
GO,
2016,
5%,
6/01/32
.............................................
1,305,000
1,623,759
GO,
2016,
5%,
6/01/33
.............................................
1,275,000
1,580,745
County
of
Muskegon
,
GO,
2015,
Refunding,
5%,
11/01/33
....................................
1,360,000
1,645,695
GO,
2015,
Refunding,
5%,
11/01/36
....................................
1,735,000
2,093,625
Detroit
City
School
District
,
GO
,
2001A
,
AGMC
Insured
,
6
%
,
5/01/29
.............
10,000,000
12,776,700
DeWitt
Public
Schools
,
GO,
2017,
5%,
5/01/30
.............................................
500,000
634,295
GO,
2017,
5%,
5/01/33
.............................................
815,000
1,017,568
GO,
2017,
5%,
5/01/34
.............................................
1,000,000
1,242,190
GO,
2017,
5%,
5/01/35
.............................................
1,000,000
1,237,770
GO,
2017,
5%,
5/01/36
.............................................
1,000,000
1,234,360
Downriver
Utility
Wastewater
Authority
,
Revenue,
2018,
Refunding,
AGMC
Insured,
5%,
4/01/34
....................
510,000
636,475
Revenue,
2018,
Refunding,
AGMC
Insured,
5%,
4/01/36
....................
1,600,000
1,975,280
Revenue,
2018,
Refunding,
AGMC
Insured,
5%,
4/01/38
....................
1,500,000
1,836,090
Revenue,
2018,
Refunding,
AGMC
Insured,
5%,
4/01/43
....................
3,000,000
3,628,380
East
Lansing
School
District
,
GO,
2017
I,
5%,
5/01/35
.............................................
1,500,000
1,864,245
GO,
2017
I,
5%,
5/01/37
.............................................
1,100,000
1,353,198
GO,
2017
I,
5%,
5/01/42
.............................................
3,500,000
4,220,195
Farmington
Public
School
District
,
GO,
2015,
Refunding,
AGMC
Insured,
5%,
5/01/27
.........................
1,000,000
1,200,180
GO,
2015,
Refunding,
AGMC
Insured,
5%,
5/01/28
.........................
2,000,000
2,395,280
GO,
2015,
Refunding,
AGMC
Insured,
5%,
5/01/32
.........................
4,035,000
4,803,829
GO,
2015,
Refunding,
AGMC
Insured,
5%,
5/01/33
.........................
2,900,000
3,445,229
GO,
2015,
Refunding,
AGMC
Insured,
5%,
5/01/34
.........................
3,000,000
3,559,500
GO,
2015,
Refunding,
AGMC
Insured,
5%,
5/01/35
.........................
1,000,000
1,184,490
GO,
2018,
BAM
Insured,
4.5%,
5/01/38
.................................
7,225,000
8,686,979
Grand
Traverse
County
Hospital
Finance
Authority
,
Munson
Healthcare
Obligated
Group,
Revenue,
2014A,
5%,
7/01/44
...........
2,000,000
2,212,700
Munson
Healthcare
Obligated
Group,
Revenue,
2014A,
5%,
7/01/47
...........
2,500,000
2,760,775
Munson
Healthcare
Obligated
Group,
Revenue,
2019A,
5%,
7/01/44
...........
1,110,000
1,334,597
Munson
Healthcare
Obligated
Group,
Revenue,
2019B,
5%,
7/01/39
...........
1,625,000
1,976,585
Grand
Valley
State
University
,
Revenue,
2016
A,
Refunding,
5%,
12/01/32
..............................
4,295,000
5,019,309
Revenue,
2018,
5%,
12/01/38
........................................
900,000
1,089,963
Revenue,
2018,
5%,
12/01/43
........................................
1,800,000
2,153,016
Grandville
Public
Schools
,
GO,
II,
AGMC
Insured,
5%,
5/01/29
....................................
750,000
896,317
GO,
II,
AGMC
Insured,
5%,
5/01/30
....................................
1,000,000
1,192,050
GO,
II,
AGMC
Insured,
5%,
5/01/31
....................................
1,150,000
1,367,373
GO,
II,
AGMC
Insured,
5%,
5/01/32
....................................
1,165,000
1,382,855
GO,
II,
AGMC
Insured,
5%,
5/01/34
....................................
1,315,000
1,554,304
GO,
II,
AGMC
Insured,
5%,
5/01/35
....................................
1,225,000
1,444,863
GO,
II,
AGMC
Insured,
5%,
5/01/37
....................................
2,915,000
3,423,638
GO,
II,
AGMC
Insured,
5%,
5/01/40
....................................
6,215,000
7,253,278
Gull
Lake
Community
School
District
,
GO
,
2018
-I
,
5
%
,
5/01/48
.................
5,000,000
6,078,000
Holly
Area
School
District
,
GO,
2014,
Refunding,
5%,
5/01/30
.....................................
1,045,000
1,213,673
GO,
2014,
Refunding,
5%,
5/01/32
.....................................
1,040,000
1,205,402
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Michigan
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
79
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Michigan
(continued)
Hudsonville
Public
Schools
,
GO,
2017,
Refunding,
5%,
5/01/37
.....................................
$
1,550,000
$
1,901,246
GO,
2017,
Refunding,
5%,
5/01/39
.....................................
2,500,000
3,046,775
GO,
2017,
Refunding,
5%,
5/01/41
.....................................
2,500,000
3,020,750
Kelloggsville
Public
Schools
,
GO,
2015,
AGMC
Insured,
5%,
5/01/33
.................................
1,045,000
1,242,004
GO,
2015,
AGMC
Insured,
5%,
5/01/35
.................................
1,150,000
1,357,552
GO,
2015,
AGMC
Insured,
5%,
5/01/38
.................................
3,815,000
4,476,864
Kentwood
Public
Schools
,
GO,
2016,
5%,
5/01/35
.............................................
1,205,000
1,463,786
GO,
2016,
5%,
5/01/36
.............................................
1,205,000
1,459,364
GO,
2016,
5%,
5/01/38
.............................................
1,210,000
1,457,312
GO,
2016,
5%,
5/01/41
.............................................
1,120,000
1,339,430
GO,
2016,
5%,
5/01/44
.............................................
1,800,000
2,142,918
L'Anse
Creuse
Public
Schools
,
GO,
2015,
Refunding,
5%,
5/01/28
.....................................
5,230,000
6,287,663
GO,
2015,
Refunding,
5%,
5/01/30
.....................................
5,560,000
6,644,700
GO,
2015,
Refunding,
5%,
5/01/32
.....................................
5,890,000
7,009,277
GO,
2015,
Refunding,
5%,
5/01/34
.....................................
6,220,000
7,376,920
GO,
2015,
Refunding,
5%,
5/01/35
.....................................
2,840,000
3,365,372
Lansing
Board
of
Water
&
Light
,
Revenue,
2011
A,
Pre-Refunded,
5.5%,
7/01/41
...........................
10,000,000
10,443,000
Revenue,
2019
A,
5%,
7/01/48
........................................
10,000,000
12,659,200
Lansing
Community
College
,
GO,
2012,
Pre-Refunded,
5%,
5/01/32
..................................
2,310,000
2,492,883
GO,
2012,
5%,
5/01/32
.............................................
690,000
742,122
GO,
2017,
Refunding,
5%,
5/01/32
.....................................
2,000,000
2,556,580
Lansing
School
District
,
GO,
2016
I,
5%,
5/01/37
.............................................
1,490,000
1,810,901
GO,
2016
I,
5%,
5/01/39
.............................................
2,125,000
2,570,974
GO,
2016
I,
5%,
5/01/40
.............................................
2,200,000
2,655,004
Lenawee
County
Hospital
Finance
Authority
,
Promedica
Healthcare
Obligated
Group
,
Revenue
,
2011B
,
Pre-Refunded
,
6
%
,
11/15/35
............................
5,000,000
5,342,500
Livonia
Public
Schools
,
GO,
2013
I,
AGMC
Insured,
5%,
5/01/36
................................
5,725,000
6,313,759
GO,
2013
I,
AGMC
Insured,
5%,
5/01/38
................................
6,000,000
6,605,340
GO,
2013
I,
AGMC
Insured,
5%,
5/01/43
................................
16,850,000
18,470,633
Macomb
Interceptor
Drain
Drainage
District
,
Special
Assessment,
2017
A,
Refunding,
5%,
5/01/34
.......................
2,000,000
2,490,180
Special
Assessment,
2017
A,
Refunding,
5%,
5/01/42
.......................
7,500,000
9,069,525
Mason
County
Central
School
District
,
GO
,
2014
,
Refunding
,
5
%
,
5/01/26
.........
1,100,000
1,325,269
Mattawan
Consolidated
School
District
,
GO,
2015
I,
5%,
5/01/30
.............................................
1,000,000
1,206,330
GO,
2015
I,
5%,
5/01/31
.............................................
1,915,000
2,306,177
GO,
2015
I,
5%,
5/01/32
.............................................
1,110,000
1,333,909
GO,
2015
I,
5%,
5/01/34
.............................................
2,325,000
2,784,513
GO,
2015
I,
5%,
5/01/39
.............................................
3,375,000
4,007,846
Meridian
Public
School
District
,
GO,
2015,
Refunding,
5%,
5/01/27
.....................................
735,000
891,570
GO,
2015,
Refunding,
5%,
5/01/29
.....................................
775,000
936,494
GO,
2015,
Refunding,
5%,
5/01/31
.....................................
1,130,000
1,360,825
Michigan
Finance
Authority
,
Beaumont
Health
Obligated
Group,
Revenue,
2012,
Refunding,
AGMC
Insured,
5%,
11/01/32
.......................................................
10,005,000
10,749,072
Beaumont
Health
Obligated
Group,
Revenue,
2012,
Refunding,
AGMC
Insured,
5%,
11/01/42
.......................................................
12,000,000
12,773,040
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Michigan
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
80
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Michigan
(continued)
Michigan
Finance
Authority,
(continued)
Beaumont
Health
Obligated
Group,
Revenue,
2013,
Refunding,
5%,
8/15/28
.....
$
5,585,000
$
6,193,653
Beaumont
Health
Obligated
Group,
Revenue,
2013,
Refunding,
5%,
8/15/29
.....
5,865,000
6,489,095
Clean
Water
Revolving
Fund,
Revenue,
2012,
Pre-Refunded,
5%,
10/01/28
......
3,000,000
3,298,830
Clean
Water
Revolving
Fund,
Revenue,
2012,
Pre-Refunded,
5%,
10/01/29
......
3,000,000
3,298,830
Clean
Water
Revolving
Fund,
Revenue,
2012,
Pre-Refunded,
5%,
10/01/32
......
2,000,000
2,199,220
Clean
Water
Revolving
Fund,
Revenue,
2016
B,
Refunding,
4%,
10/01/30
.......
2,750,000
3,267,275
Clean
Water
Revolving
Fund,
Revenue,
2018B,
Refunding,
5%,
10/01/38
........
8,055,000
10,282,852
Henry
Ford
Health
System
Obligated
Group,
Revenue,
2016,
Refunding,
5%,
11/15/32
.......................................................
2,725,000
3,252,860
Henry
Ford
Health
System
Obligated
Group,
Revenue,
2016,
Refunding,
5%,
11/15/37
.......................................................
4,235,000
4,984,341
Henry
Ford
Health
System
Obligated
Group,
Revenue,
2016,
Refunding,
5%,
11/15/41
.......................................................
22,015,000
25,746,102
Henry
Ford
Health
System
Obligated
Group,
Revenue,
2019A,
4%,
11/15/50
.....
3,630,000
4,088,614
Kalamazoo
College,
Revenue,
2018,
Refunding,
4%,
12/01/47
................
2,610,000
2,816,738
Kettering
University,
Revenue,
2020,
Refunding,
4%,
9/01/35
.................
400,000
450,192
Kettering
University,
Revenue,
2020,
Refunding,
4%,
9/01/36
.................
565,000
633,015
Kettering
University,
Revenue,
2020,
Refunding,
4%,
9/01/37
.................
640,000
714,522
Kettering
University,
Revenue,
2020,
Refunding,
4%,
9/01/38
.................
675,000
751,133
Kettering
University,
Revenue,
2020,
Refunding,
4%,
9/01/39
.................
645,000
715,563
Kettering
University,
Revenue,
2020,
Refunding,
4%,
9/01/45
.................
3,780,000
4,129,650
Kettering
University,
Revenue,
2020,
Refunding,
4%,
9/01/50
.................
3,000,000
3,259,200
Michigan
Finance
Authority
Clean
Water
Revolving
Fund,
Revenue,
2018B,
Refunding,
5%,
10/01/39
...........................................
6,000,000
7,639,440
Sparrow
Health
Obligated
Group,
Revenue,
2012,
AGMC
Insured,
5%,
11/15/42
..
8,000,000
8,497,360
Trinity
Health
Corp.
Obligated
Group,
Revenue,
2016
MI,
Pre-Refunded,
5%,
12/01/45
.......................................................
290,000
364,965
Trinity
Health
Corp.
Obligated
Group,
Revenue,
2016
MI,
5%,
12/01/45
.........
19,710,000
23,027,587
Michigan
State
Building
Authority
,
Revenue,
2011
I-A,
Refunding,
5.5%,
10/15/45
............................
2,000,000
2,117,020
Revenue,
2013
A-1,
Refunding,
5%,
10/15/33
.............................
5,000,000
5,665,950
Revenue,
2013
A-1,
Refunding,
5.25%,
10/15/47
..........................
5,000,000
5,671,200
Revenue,
2016
I,
Refunding,
5%,
4/15/41
................................
13,000,000
15,638,090
Revenue,
2016
I,
Refunding,
5%,
10/15/46
...............................
9,910,000
11,831,549
Revenue,
2016
I,
Refunding,
5%,
10/15/51
...............................
1,000,000
1,197,760
Revenue,
2019
I,
Refunding,
4%,
10/15/49
...............................
2,500,000
2,876,200
Michigan
State
Hospital
Finance
Authority
,
Ascension
Health
Credit
Group,
Revenue,
1999B-3,
4%,
11/15/32
.............
5,000,000
5,923,500
Ascension
Health
Credit
Group,
Revenue,
1999B-3,
4%,
11/15/33
.............
5,370,000
6,326,021
Ascension
Health
Credit
Group,
Revenue,
2010F-7,
Refunding,
5%,
11/15/47
.....
10,000,000
11,875,200
Ascension
Health
Credit
Group,
Revenue,
2010F-8,
Refunding,
5%,
11/15/46
.....
5,000,000
5,941,050
McLaren
Health
Care
Corp.
Obligated
Group,
Revenue,
2012
A,
Refunding,
5%,
6/01/26
........................................................
2,065,000
2,213,226
McLaren
Health
Care
Corp.
Obligated
Group,
Revenue,
2012
A,
Refunding,
5%,
6/01/27
........................................................
2,285,000
2,445,795
McLaren
Health
Care
Corp.
Obligated
Group,
Revenue,
2012
A,
Refunding,
5%,
6/01/28
........................................................
2,615,000
2,793,840
McLaren
Health
Care
Corp.
Obligated
Group,
Revenue,
2012
A,
Refunding,
5%,
6/01/35
........................................................
2,250,000
2,383,560
Trinity
Health
Corp.
Obligated
Group,
Revenue,
2009B,
Pre-Refunded,
5%,
12/01/48
20,000,000
21,662,400
Michigan
State
Housing
Development
Authority
,
Revenue,
2019B,
3.1%,
12/01/44
......................................
15,000,000
15,740,700
Revenue,
2020
A,
2.8%,
12/01/45
.....................................
4,350,000
4,378,623
Revenue,
2020
A,
2.85%,
6/01/50
.....................................
5,150,000
5,182,548
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Michigan
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
81
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Michigan
(continued)
Michigan
State
University
,
Revenue
,
2015A
,
5
%
,
8/15/40
......................
$
8,500,000
$
9,852,520
Michigan
Strategic
Fund
,
DTE
Electric
Co.,
Revenue,
BB,
Refunding,
AMBAC
Insured,
7%,
5/01/21
.......
3,000,000
3,129,660
State
of
Michigan
Department
of
Transportation,
Revenue,
2018,
5%,
12/31/43
...
7,000,000
7,854,700
Michigan
Technological
University
,
Revenue
,
2015A
,
5
%
,
10/01/45
..............
2,400,000
2,854,200
Oakland
School
District
,
GO,
2016,
Refunding,
5%,
5/01/35
.....................................
1,500,000
1,833,225
GO,
2016,
Refunding,
5%,
5/01/36
.....................................
1,005,000
1,224,542
Oakland
University
,
Revenue,
2014,
Refunding,
5%,
3/01/27
.................................
1,000,000
1,127,280
Revenue,
2014,
Refunding,
5%,
3/01/30
.................................
1,010,000
1,128,483
Revenue,
2014,
Refunding,
5%,
3/01/31
.................................
1,260,000
1,403,993
Revenue,
2014,
Refunding,
5%,
3/01/32
.................................
1,000,000
1,111,110
Revenue,
2014,
Refunding,
5%,
3/01/33
.................................
1,285,000
1,423,908
Revenue,
2014,
Refunding,
5%,
3/01/34
.................................
1,000,000
1,106,190
Revenue,
2014,
Refunding,
5%,
3/01/39
.................................
3,000,000
3,293,160
Revenue,
2016,
5%,
3/01/47
.........................................
7,230,000
8,202,941
Revenue,
2019,
5%,
3/01/50
.........................................
3,500,000
4,191,110
Rochester
Community
School
District
,
GO,
2016
I,
5%,
5/01/32
.............................................
5,575,000
6,861,877
GO,
2016
I,
5%,
5/01/35
.............................................
6,450,000
7,882,868
GO,
2016
I,
5%,
5/01/36
.............................................
2,800,000
3,411,660
Roseville
Community
Schools
,
GO,
2014,
Refunding,
5%,
5/01/26
.....................................
1,400,000
1,688,862
GO,
2014,
Refunding,
5%,
5/01/27
.....................................
1,370,000
1,647,754
GO,
2014,
Refunding,
5%,
5/01/28
.....................................
3,040,000
3,648,547
GO,
2014,
Refunding,
5%,
5/01/29
.....................................
3,300,000
3,953,895
GO,
2014,
Refunding,
5%,
5/01/30
.....................................
1,620,000
1,937,698
GO,
2014,
Refunding,
5%,
5/01/31
.....................................
1,585,000
1,892,617
Royal
Oak
Hospital
Finance
Authority
,
Beaumont
Health
Obligated
Group,
Revenue,
2014D,
Refunding,
5%,
9/01/27
....
3,350,000
3,811,730
Beaumont
Health
Obligated
Group,
Revenue,
2014D,
Refunding,
5%,
9/01/28
....
2,500,000
2,835,000
Beaumont
Health
Obligated
Group,
Revenue,
2014D,
Refunding,
5%,
9/01/39
....
17,500,000
19,429,375
Saginaw
Valley
State
University
,
Revenue,
2016
A,
Refunding,
5%,
7/01/30
...............................
1,750,000
2,144,100
Revenue,
2016
A,
Refunding,
5%,
7/01/31
...............................
2,170,000
2,650,438
Revenue,
2016
A,
Refunding,
5%,
7/01/33
...............................
1,240,000
1,505,930
Saline
Area
Schools
Historic
Preservation
Foundation
,
GO,
2016,
5%,
5/01/34
.............................................
2,750,000
3,369,410
GO,
2016,
5%,
5/01/36
.............................................
2,950,000
3,594,427
South
Haven
Public
Schools
,
GO,
2015B,
AGMC
Insured,
5%,
5/01/33
................................
350,000
415,450
GO,
2015B,
AGMC
Insured,
5%,
5/01/35
................................
1,575,000
1,863,194
Sparta
Area
Schools
,
GO
,
II
,
5
%
,
5/01/48
.................................
5,750,000
6,962,330
a
State
of
Michigan
,
Trunk
Line
,
Revenue
,
2020
B
,
4
%
,
11/15/45
.................
12,000,000
14,123,280
Trenton
Public
Schools
School
District
,
GO,
2018,
5%,
5/01/42
.............................................
4,920,000
6,023,163
GO,
2018,
5%,
5/01/45
.............................................
11,480,000
14,022,016
University
of
Michigan
,
Revenue,
2015,
Refunding,
5%,
4/01/46
.................................
2,000,000
2,386,260
Revenue,
2017
A,
Refunding,
5%,
4/01/37
...............................
2,700,000
3,341,601
Revenue,
2017
A,
Refunding,
5%,
4/01/42
...............................
26,635,000
32,594,315
Revenue,
2017
A,
Refunding,
5%,
4/01/47
...............................
5,000,000
6,076,850
Revenue,
2020A,
Refunding,
4%,
4/01/45
...............................
1,600,000
1,915,984
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Michigan
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Semiannual
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The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
82
s
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Michigan
(continued)
Warren
Consolidated
Schools
,
GO
,
2012
,
5
%
,
5/01/32
.......................
$
2,500,000
$
2,656,075
Wayne
County
Airport
Authority
,
Detroit
Metropolitan
Wayne
County
Airport
,
Revenue
,
2018A
,
5
%
,
12/01/43
...............................................
7,750,000
9,386,258
Wayne
State
University
,
Revenue,
2015A,
Refunding,
5%,
11/15/31
...............................
1,860,000
2,126,185
Revenue,
2015A,
Refunding,
5%,
11/15/33
...............................
1,500,000
1,704,510
Revenue,
2018A,
5%,
11/15/43
.......................................
4,500,000
5,423,355
Revenue,
2018A,
4%,
11/15/48
.......................................
10,000,000
11,197,000
Western
Michigan
University
,
Revenue,
2015A,
Refunding,
5%,
11/15/26
...............................
1,500,000
1,799,415
Revenue,
2015A,
Refunding,
5%,
11/15/27
...............................
2,160,000
2,584,505
Revenue,
2015A,
Refunding,
5%,
11/15/28
...............................
1,635,000
1,952,975
Revenue,
2015A,
Refunding,
5%,
11/15/29
...............................
2,000,000
2,386,920
Revenue,
2015A,
Refunding,
5%,
11/15/30
...............................
2,500,000
2,974,725
Revenue,
2015A,
Refunding,
5%,
11/15/40
...............................
1,560,000
1,841,221
Revenue,
2015A,
Refunding,
5%,
11/15/45
...............................
2,000,000
2,350,480
Revenue,
2019
A,
Refunding,
5%,
11/15/49
..............................
5,100,000
6,164,217
Zeeland
Public
Schools
,
GO,
2015A,
AGMC
Insured,
5%,
5/01/31
................................
1,530,000
1,824,617
GO,
2015A,
AGMC
Insured,
5%,
5/01/33
................................
2,000,000
2,373,000
GO,
2015A,
Pre-Refunded,
AGMC
Insured,
5%,
5/01/34
.....................
2,000,000
2,428,800
GO,
2015A,
Pre-Refunded,
AGMC
Insured,
5%,
5/01/35
.....................
2,000,000
2,428,800
945,740,290
U.S.
Territories
0.2%
Guam
0.2%
Guam
Government
Waterworks
Authority
,
Revenue
,
2020
A
,
5
%
,
1/01/50
.........
1,750,000
2,130,205
Total
Municipal
Bonds
(Cost
$871,347,409)
.....................................
947,870,495
a
a
a
a
Short
Term
Investments
1.5%
Municipal
Bonds
1.5%
Michigan
1.5%
b
Green
Lake
Township
Economic
Development
Corp.
,
Interlochen
Center
for
the
Arts
,
Revenue
,
2004
,
Refunding
,
LOC
BMO
Harris
Bank
NA
,
Daily
VRDN
and
Put
,
0.02
%
,
6/01/34
.........................................................
700,000
700,000
b
Michigan
Strategic
Fund
,
Edison
Institute
(The)
,
Revenue
,
2002
,
LOC
Comerica
Bank
,
Daily
VRDN
and
Put
,
0.03
%
,
12/01/33
..................................
3,870,000
3,870,000
b
University
of
Michigan
,
Revenue,
2008A,
SPA
Wells
Fargo
Bank
NA,
Daily
VRDN
and
Put,
0.02%,
4/01/38
5,500,000
5,500,000
Revenue,
2012B,
Daily
VRDN
and
Put,
0.02%,
4/01/42
.....................
2,600,000
2,600,000
Revenue,
2012D-1,
Daily
VRDN
and
Put,
0.02%,
12/01/24
...................
1,600,000
1,600,000
14,270,000
Total
Municipal
Bonds
(Cost
$14,270,000)
......................................
14,270,000
Total
Short
Term
Investments
(Cost
$14,270,000
)
................................
14,270,000
a
Total
Investments
(Cost
$885,617,409)
100.1%
..................................
$962,140,495
Other
Assets,
less
Liabilities
(0.1)%
...........................................
(1,124,230)
Net
Assets
100.0%
...........................................................
$961,016,265
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Michigan
Tax-Free
Income
Fund
(continued)
franklintempleton.com
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notes
are
an
integral
part
of
these
financial
statements.
Semiannual
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83
See
Abbreviations
on
page
155
.
a
Security
purchased
on
a
when-issued
basis.
See
Note
1(b).
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
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Trust
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Minnesota
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statements.
84
0
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
Year
Ended
February
28,
2019
b
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
..........................................
$12.82
$12.10
$11.97
Income
from
investment
operations
c
:
Net
investment
income
d
..................................................
0.13
0.30
0.16
Net
realized
and
unrealized
gains
(losses)
....................................
(0.08)
0.72
0.13
Total
from
investment
operations
.............................................
0.05
1.02
0.29
Less
distributions
from:
Net
investment
income
...................................................
(0.13)
(0.30)
(0.16)
Net
asset
value,
end
of
period
...............................................
$12.74
$12.82
$12.10
Total
return
e
............................................................
0.42%
8.56%
2.45%
Ratios
to
average
net
assets
f
Expenses
g
.............................................................
0.83%
0.83%
0.83%
Net
investment
income
....................................................
2.06%
2.42%
2.81%
Supplemental
data
Net
assets,
end
of
period
(000’s)
.............................................
$129,953
$96,802
$39,129
Portfolio
turnover
rate
.....................................................
3.98%
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
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Tax-Free
Income
Fund
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statements.
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a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
2019
2018
2017
2016
a
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$12.82
$12.09
$12.07
$12.27
$12.63
$12.69
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.14
0.32
0.35
0.35
0.37
0.40
Net
realized
and
unrealized
gains
(losses)
(0.08)
0.73
0.02
(0.20)
(0.35)
(0.06)
Total
from
investment
operations
........
0.06
1.05
0.37
0.15
0.02
0.34
Less
distributions
from:
Net
investment
income
..............
(0.14)
(0.32)
(0.35)
(0.35)
(0.38)
(0.40)
Net
asset
value,
end
of
period
..........
$12.74
$12.82
$12.09
$12.07
$12.27
$12.63
Total
return
d
.......................
0.49%
8.82%
3.16%
1.23%
0.11%
2.71%
Ratios
to
average
net
assets
e
Expenses
.........................
0.68%
f
0.68%
f
0.68%
f
0.66%
0.65%
0.64%
Net
investment
income
...............
2.23%
2.57%
2.96%
2.87%
2.99%
3.16%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$592,899
$606,559
$588,878
$657,415
$695,040
$731,215
Portfolio
turnover
rate
................
3.98%
16.45%
13.97%
13.77%
13.80%
8.61%
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,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
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Trust
Financial
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Tax-Free
Income
Fund
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of
these
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statements.
86
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
2019
2018
2017
2016
a
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$12.97
$12.23
$12.21
$12.40
$12.76
$12.82
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.11
0.25
0.29
0.29
0.31
0.33
Net
realized
and
unrealized
gains
(losses)
(0.08)
0.75
0.02
(0.20)
(0.37)
(0.06)
Total
from
investment
operations
........
0.03
1.00
0.31
0.09
(0.06)
0.27
Less
distributions
from:
Net
investment
income
..............
(0.11)
(0.26)
(0.29)
(0.28)
(0.30)
(0.33)
Net
asset
value,
end
of
period
..........
$12.89
$12.97
$12.23
$12.21
$12.40
$12.76
Total
return
d
.......................
0.21%
8.23%
2.56%
0.74%
(0.45)%
2.12%
Ratios
to
average
net
assets
e
Expenses
.........................
1.23%
f
1.23%
f
1.23%
f
1.21%
1.20%
1.19%
Net
investment
income
...............
1.67%
2.02%
2.41%
2.32%
2.44%
2.61%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$117,733
$138,417
$148,269
$203,925
$223,444
$217,904
Portfolio
turnover
rate
................
3.98%
16.45%
13.97%
13.77%
13.80%
8.61%
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,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
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Minnesota
Tax-Free
Income
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part
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financial
statements.
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a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
Year
Ended
February
28,
2018
b
2020
a
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
..............................
$12.84
$12.11
$12.09
$12.40
Income
from
investment
operations
c
:
Net
investment
income
d
......................................
0.15
0.34
0.37
0.22
Net
realized
and
unrealized
gains
(losses)
........................
(0.08)
0.73
0.02
(0.32)
Total
from
investment
operations
.................................
0.07
1.07
0.39
(0.10)
Less
distributions
from:
Net
investment
income
.......................................
(0.15)
(0.34)
(0.37)
(0.21)
Net
asset
value,
end
of
period
...................................
$12.76
$12.84
$12.11
$12.09
Total
return
e
................................................
0.57%
8.97%
3.30%
(0.80)%
Ratios
to
average
net
assets
f
Expenses
before
waiver
and
payments
by
affiliates
...................
0.55%
0.55%
0.56%
0.54%
Expenses
net
of
waiver
and
payments
by
affiliates
....................
0.53%
g
0.53%
g
0.53%
g
0.51%
Net
investment
income
........................................
2.38%
2.72%
3.11%
3.02%
Supplemental
data
Net
assets,
end
of
period
(000’s)
.................................
$10,482
$9,693
$7,177
$8,342
Portfolio
turnover
rate
.........................................
3.98%
16.45%
13.97%
13.77%
a
For
the
year
ended
February
29.
b
For
the
period
August
1,
2017
(effective
date)
to
February
28,
2018.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
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Trust
Financial
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of
these
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statements.
88
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
2019
2018
2017
2016
a
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$12.83
$12.11
$12.09
$12.28
$12.64
$12.70
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.15
0.33
0.37
0.37
0.39
0.41
Net
realized
and
unrealized
gains
(losses)
(0.08)
0.73
0.02
(0.19)
(0.36)
(0.06)
Total
from
investment
operations
........
0.07
1.06
0.39
0.18
0.03
0.35
Less
distributions
from:
Net
investment
income
..............
(0.15)
(0.34)
(0.37)
(0.37)
(0.39)
(0.41)
Net
asset
value,
end
of
period
..........
$12.75
$12.83
$12.11
$12.09
$12.28
$12.64
Total
return
d
.......................
0.54%
8.83%
3.26%
1.41%
0.20%
2.81%
Ratios
to
average
net
assets
e
Expenses
.........................
0.58%
f
0.58%
f
0.58%
f
0.56%
0.55%
0.54%
Net
investment
income
...............
2.32%
2.67%
3.06%
2.97%
3.09%
3.26%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$211,668
$203,230
$156,683
$160,199
$169,533
$121,685
Portfolio
turnover
rate
................
3.98%
16.45%
13.97%
13.77%
13.80%
8.61%
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
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited),
August
31,
2020
Franklin
Minnesota
Tax-Free
Income
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
89
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
98.7%
Minnesota
98.7%
Alexandria
Independent
School
District
No.
206
,
GO,
2011-A,
Refunding,
5%,
2/01/37
...................................
$
11,700,000
$
11,921,832
GO,
2017
A,
Refunding,
3%,
2/01/37
...................................
29,905,000
32,229,217
Anoka-Hennepin
Independent
School
District
No.
11
,
GO,
2018A,
3.25%,
2/01/37
..........................................
5,355,000
5,856,549
GO,
2018A,
3.375%,
2/01/43
.........................................
6,020,000
6,541,573
GO,
2020
A,
3%,
2/01/45
............................................
2,000,000
2,138,800
Big
Lake
Independent
School
District
No.
727
,
GO,
2012B,
Refunding,
5%,
2/01/23
....................................
2,990,000
3,190,539
GO,
2012B,
Refunding,
5%,
2/01/24
....................................
3,000,000
3,200,760
GO,
2012B,
Refunding,
5%,
2/01/25
....................................
1,225,000
1,306,806
Brainerd
Independent
School
District
No.
181
,
GO,
2018
A,
4%,
2/01/32
............................................
3,065,000
3,592,149
GO,
2018
A,
4%,
2/01/39
............................................
10,600,000
12,141,452
GO,
2018
A,
4%,
2/01/42
............................................
1,900,000
2,161,953
GO,
2018
C,
Refunding,
5%,
2/01/28
...................................
3,735,000
4,573,881
Cambridge-Isanti
Independent
School
District
No.
911
,
GO,
2012A,
Refunding,
3%,
2/01/27
....................................
3,410,000
3,524,542
GO,
2012A,
Refunding,
3%,
2/01/30
....................................
5,585,000
5,722,000
Centennial
Independent
School
District
No.
12
,
GO,
2015A,
Zero
Cpn
.,
2/01/32
.......................................
1,450,000
1,042,086
GO,
2015A,
Zero
Cpn
.,
2/01/34
.......................................
1,600,000
1,044,320
GO,
2015A,
Zero
Cpn
.,
2/01/35
.......................................
350,000
218,299
Central
Minnesota
Municipal
Power
Agency
,
Revenue,
2012,
5%,
1/01/32
.........................................
1,150,000
1,220,058
Revenue,
2012,
5%,
1/01/42
.........................................
1,615,000
1,707,814
City
of
Bemidji
,
GO
,
2011
,
Pre-Refunded
,
5.25
%
,
2/01/38
.....................
12,055,000
12,307,191
City
of
Center
City
,
Hazelden
Betty
Ford
Foundation
,
Revenue
,
2019
,
Refunding
,
4
%
,
11/01/41
........................................................
1,000,000
1,100,900
City
of
Fridley
,
Fridley
Leased
Housing
Associates
I
LLLP
,
Revenue
,
2018
,
FNMA
Insured
,
3.75
%
,
11/01/34
............................................
9,804,287
11,088,355
City
of
Lakeville
,
GO
,
2012B
,
Refunding
,
3
%
,
2/01/30
........................
4,690,000
4,821,742
City
of
Minneapolis
,
GO,
2018,
4%,
12/01/43
.............................................
5,000,000
5,692,200
GO,
2018,
4%,
12/01/46
.............................................
3,500,000
3,948,210
GO,
2019,
3%,
12/01/28
.............................................
1,400,000
1,584,072
GO,
2019,
3%,
12/01/40
.............................................
5,000,000
5,306,100
Revenue,
2018
A,
Refunding,
AGMC
Insured,
5%,
11/15/49
..................
6,000,000
7,173,480
14th
and
Central
LLLP,
Revenue,
2020,
FNMA
Insured,
2.35%,
2/01/38
.........
10,000,000
10,194,000
Fairview
Health
Services
Obligated
Group,
Revenue,
2015
A,
Refunding,
AGMC
Insured,
5%,
11/15/44
.............................................
10,000,000
11,340,400
City
of
Minneapolis/St.
Paul
Housing
&
Redevelopment
Authority
,
Allina
Health
Obligated
Group,
Revenue,
2017
A,
Refunding,
5%,
11/15/26
.......
2,000,000
2,493,280
Allina
Health
Obligated
Group,
Revenue,
2017
A,
Refunding,
5%,
11/15/27
.......
2,000,000
2,512,540
City
of
Ramsey
,
GO,
2012A,
3%,
12/15/28
...........................................
1,105,000
1,135,476
GO,
2012A,
3.375%,
12/15/31
........................................
1,215,000
1,247,149
City
of
Rochester
,
Electric
Utility,
Revenue,
2013B,
5%,
12/01/43
............................
1,000,000
1,124,340
Electric
Utility,
Revenue,
2017
A,
Refunding,
5%,
12/01/42
...................
2,000,000
2,409,840
Electric
Utility,
Revenue,
2017
A,
Refunding,
5%,
12/01/47
...................
9,210,000
11,030,540
Mayo
Clinic,
Revenue,
2016B,
Refunding,
5%,
11/15/33
.....................
4,425,000
6,260,800
Mayo
Clinic,
Revenue,
2016B,
Refunding,
5%,
11/15/34
.....................
10,235,000
14,703,294
Mayo
Clinic,
Revenue,
2016B,
Refunding,
5%,
11/15/35
.....................
5,000,000
7,270,100
Mayo
Clinic,
Revenue,
2016B,
Refunding,
5%,
11/15/36
.....................
4,200,000
6,175,848
Mayo
Clinic,
Revenue,
2018,
4%,
11/15/48
...............................
6,000,000
6,750,180
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Minnesota
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Semiannual
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)
Minnesota
(continued)
City
of
St.
Cloud
,
CentraCare
Health
System
Obligated
Group,
Revenue,
2010A,
5.125%,
5/01/30
..
$
750,000
$
752,317
CentraCare
Health
System
Obligated
Group,
Revenue,
2016A,
Refunding,
4%,
5/01/37
........................................................
12,310,000
13,508,994
CentraCare
Health
System
Obligated
Group,
Revenue,
2016A,
Refunding,
5%,
5/01/46
........................................................
4,650,000
5,363,078
City
of
St.
Paul
,
Sales
&
Use
Tax,
Revenue,
2014G,
5%,
11/01/31
..........................
1,000,000
1,172,660
Sales
&
Use
Tax,
Revenue,
2014G,
5%,
11/01/32
..........................
1,000,000
1,175,810
Sewer,
Revenue,
2020
D,
Refunding,
4%,
12/01/23
........................
1,020,000
1,144,634
Sewer,
Revenue,
2020
D,
Refunding,
5%,
12/01/26
........................
1,165,000
1,489,860
City
of
Virginia
,
GO,
2020
A,
AGMC
Insured,
4%,
2/01/36
................................
1,000,000
1,154,240
GO,
2020
A,
AGMC
Insured,
4%,
2/01/40
................................
1,160,000
1,324,082
City
of
Willmar
,
GO
,
2012A
,
Refunding
,
3
%
,
2/01/29
.........................
500,000
504,035
Cloquet
Independent
School
District
No.
94
,
GO
,
2015B
,
5
%
,
2/01/32
............
3,615,000
4,309,044
County
of
Hennepin
,
GO,
2019
B,
5%,
12/15/33
...........................................
2,280,000
3,000,754
GO,
2019
B,
5%,
12/15/34
...........................................
1,055,000
1,385,299
GO,
2019
B,
5%,
12/15/36
...........................................
12,680,000
16,519,884
Dakota
County
Community
Development
Agency
,
Revenue
,
2011
A
,
GNMA
Insured
,
4.875
%
,
12/01/33
..................................................
625,000
630,150
Dawson-Boyd
Independent
School
District
No.
378
,
GO
,
2019
A
,
3.125
%
,
2/01/40
...
2,965,000
3,225,297
Dilworth
Glyndon
Felton
Independent
School
District
No.
2164
,
GO,
2020
A,
3%,
2/01/37
............................................
1,000,000
1,065,240
GO,
2020
A,
3%,
2/01/39
............................................
1,000,000
1,060,840
GO,
2020
A,
3%,
2/01/41
............................................
1,225,000
1,294,568
Duluth
Economic
Development
Authority
,
Essentia
Health
Obligated
Group,
Revenue,
2018
A,
Refunding,
5.25%,
2/15/53
...
15,900,000
18,673,278
Essentia
Health
Obligated
Group,
Revenue,
2018
A,
Refunding,
5.25%,
2/15/58
...
13,035,000
15,303,351
Duluth
Independent
School
District
No.
709
,
COP,
2016
A,
Refunding,
5%,
2/01/25
..................................
1,015,000
1,198,197
COP,
2016
A,
Refunding,
5%,
2/01/26
..................................
2,740,000
3,327,812
COP,
2016
A,
Refunding,
4%,
2/01/27
..................................
3,750,000
4,326,338
COP,
2016
A,
Refunding,
4%,
2/01/28
..................................
1,500,000
1,724,235
GO,
2015B,
Refunding,
4%,
2/01/25
....................................
3,450,000
3,923,478
GO,
2015B,
Refunding,
2.5%,
2/01/26
..................................
2,840,000
3,030,110
Edina
Independent
School
District
No.
273
,
GO
,
2019A
,
3
%
,
2/01/36
.............
1,630,000
1,760,221
Elk
River
Independent
School
District
No.
728
,
GO
,
2015A
,
4
%
,
2/01/32
..........
6,130,000
6,703,400
Farmington
Independent
School
District
No.
192
,
GO
,
2016
A
,
4
%
,
2/01/28
........
3,830,000
4,483,781
Fridley
Independent
School
District
No.
14
,
GO
,
2016
A
,
4
%
,
2/01/29
............
2,220,000
2,572,758
Hastings
Independent
School
District
No.
200
,
GO,
2018A,
Zero
Cpn
.,
2/01/38
.......................................
4,685,000
2,793,103
GO,
2018A,
Zero
Cpn
.,
2/01/39
.......................................
4,685,000
2,672,465
GO,
2018A,
Zero
Cpn
.,
2/01/40
.......................................
4,685,000
2,555,995
Hennepin
County
Regional
Railroad
Authority
,
GO,
2019A,
5%,
12/01/35
...........................................
4,480,000
5,808,320
GO,
2019A,
5%,
12/01/36
...........................................
5,220,000
6,742,309
Hermantown
Independent
School
District
No.
700
,
GO
,
2014A
,
Refunding
,
4
%
,
2/01/29
2,310,000
2,601,753
Hopkins
Independent
School
District
No.
270
,
GO,
2019A,
3%,
2/01/33
............................................
5,640,000
6,122,671
GO,
2019A,
3%,
2/01/34
............................................
2,450,000
2,650,900
Jordan
Independent
School
District
No.
717
,
GO,
2014A,
Refunding,
5%,
2/01/31
....................................
1,460,000
1,617,067
GO,
Refunding,
5%,
2/01/32
.........................................
2,000,000
2,215,160
GO,
2014A,
Refunding,
5%,
2/01/33
....................................
1,700,000
1,882,886
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Minnesota
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
91
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Minnesota
(continued)
Jordan
Independent
School
District
No.
717,
(continued)
GO,
2014A,
Refunding,
5%,
2/01/34
....................................
$
1,805,000
$
1,999,182
GO,
2014A,
Refunding,
5%,
2/01/35
....................................
1,000,000
1,107,580
Lakeville
Independent
School
District
No.
194
,
GO
,
2012B
,
3
%
,
2/01/25
..........
3,560,000
3,694,639
Maple
River
Independent
School
District
No.
2135
,
GO,
2020
A,
4%,
2/01/45
............................................
6,000,000
7,116,300
GO,
2020
A,
4%,
2/01/50
............................................
10,000,000
11,788,400
Metropolitan
Council
,
GO,
2016
C,
Refunding,
3%,
3/01/30
...................................
3,305,000
3,640,689
GO,
2019A,
3%,
3/01/29
............................................
6,400,000
7,117,056
GO,
2020
B,
2.125%,
3/01/36
.........................................
4,500,000
4,546,305
GO,
2020
B,
2.125%,
3/01/37
.........................................
4,000,000
4,023,760
GO,
2020
B,
2.125%,
3/01/38
.........................................
4,000,000
4,009,120
Minneapolis
Special
School
District
No.
1
,
GO
,
2017
B
,
5
%
,
2/01/30
.............
2,590,000
3,353,351
Minneapolis-St.
Paul
Metropolitan
Airports
Commission
,
Revenue,
2012B,
Refunding,
5%,
1/01/27
...............................
1,500,000
1,581,885
Revenue,
2012B,
Refunding,
5%,
1/01/28
...............................
2,250,000
2,371,275
Revenue,
2019
A,
Refunding,
5%,
1/01/44
...............................
4,750,000
5,773,625
Revenue,
Senior
Lien,
2016
C,
5%,
1/01/34
..............................
2,870,000
3,452,438
Revenue,
Senior
Lien,
2016
C,
5%,
1/01/35
..............................
4,025,000
4,830,120
Revenue,
Senior
Lien,
2016
C,
5%,
1/01/41
..............................
19,655,000
23,237,124
Revenue,
Senior
Lien,
2016
C,
5%,
1/01/46
..............................
15,500,000
18,174,990
Minnesota
Higher
Education
Facilities
Authority
,
Carleton
College,
Revenue,
2017,
Refunding,
4%,
3/01/47
...................
3,575,000
4,030,848
Macalester
College,
Revenue,
2017,
Refunding,
3%,
3/01/33
.................
3,010,000
3,252,245
Macalester
College,
Revenue,
2017,
Refunding,
4%,
3/01/42
.................
900,000
1,011,906
St.
Olaf
College,
Revenue,
EIGHT
N,
Refunding,
4%,
10/01/33
................
1,500,000
1,678,665
St.
Olaf
College,
Revenue,
EIGHT
N,
Refunding,
4%,
10/01/35
................
500,000
556,020
University
of
St.
Thomas,
Revenue,
2016
8-L,
Refunding,
4%,
4/01/31
..........
4,200,000
4,657,380
University
of
St.
Thomas,
Revenue,
2016
8-L,
Refunding,
5%,
4/01/35
..........
1,720,000
1,990,900
University
of
St.
Thomas,
Revenue,
2017A,
Refunding,
4%,
10/01/36
...........
750,000
833,505
University
of
St.
Thomas,
Revenue,
2017A,
Refunding,
4%,
10/01/37
...........
750,000
831,240
University
of
St.
Thomas,
Revenue,
2019,
5%,
10/01/40
.....................
3,260,000
3,934,037
University
of
St.
Thomas,
Revenue,
2019,
4%,
10/01/44
.....................
2,745,000
3,023,206
Minnesota
Housing
Finance
Agency
,
Revenue,
2009,
4%,
8/01/29
.........................................
3,675,000
3,684,004
Revenue,
2011,
5%,
8/01/31
.........................................
2,225,000
2,314,289
Revenue,
2011-E,
GNMA
Insured,
4.45%,
7/01/31
.........................
2,110,000
2,160,260
Revenue,
2011G,
GNMA
Insured,
4%,
7/01/26
............................
1,115,000
1,143,031
Revenue,
2011G,
GNMA
Insured,
4.4%,
7/01/32
..........................
1,905,000
1,947,596
Revenue,
2019
C,
4%,
8/01/39
........................................
1,000,000
1,184,580
Revenue,
2020
B,
GNMA
Insured,
2.8%,
1/01/44
..........................
4,730,000
4,887,178
Revenue,
2020
E,
GNMA
Insured,
2.5%,
7/01/40
..........................
2,500,000
2,562,475
Revenue,
2020
E,
GNMA
Insured,
2.7%,
7/01/44
..........................
3,500,000
3,584,350
a
Revenue,
2020B,
4%,
8/01/39
........................................
2,055,000
2,473,316
a
Revenue,
2020B,
4%,
8/01/40
........................................
3,405,000
4,082,322
a
Revenue,
2020B,
4%,
8/01/41
........................................
3,100,000
3,706,329
a
Revenue,
2020D,
4%,
8/01/41
........................................
1,000,000
1,195,590
a
Revenue,
2020D,
4%,
8/01/42
........................................
1,000,000
1,192,270
a
Revenue,
2020D,
4%,
8/01/43
........................................
1,000,000
1,189,170
Minnesota
Municipal
Power
Agency
,
Revenue,
2010-A,
5.25%,
10/01/35
....................................
12,000,000
12,046,920
Revenue,
2014A,
Refunding,
4%,
10/01/31
..............................
1,265,000
1,402,796
Revenue,
2014A,
Refunding,
4%,
10/01/32
..............................
1,200,000
1,324,956
Revenue,
2014A,
Refunding,
4%,
10/01/33
..............................
1,000,000
1,100,450
Revenue,
2014A,
Refunding,
5%,
10/01/34
..............................
1,000,000
1,169,990
Revenue,
2014A,
Refunding,
5%,
10/01/35
..............................
1,005,000
1,175,840
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Minnesota
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Semiannual
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)
Minnesota
(continued)
Minnesota
Municipal
Power
Agency,
(continued)
Revenue,
2016,
4%,
10/01/41
........................................
$
4,680,000
$
5,199,293
Revenue,
2016,
5%,
10/01/47
........................................
4,650,000
5,597,949
Minnesota
Public
Facilities
Authority
,
Revenue
,
2010A
,
5
%
,
3/01/24
..............
17,010,000
19,841,655
Minnesota
State
Colleges
And
Universities
Foundation
,
Revenue,
2011A,
5%,
10/01/28
.......................................
2,135,000
2,240,042
Revenue,
2012A,
Refunding,
5%,
10/01/22
..............................
1,410,000
1,541,624
Moorhead
Independent
School
District
No.
152
,
GO
,
2020A
,
2.5
%
,
2/01/37
........
9,295,000
9,703,701
New
Prague
Independent
School
District
No.
721
,
GO,
2012-A,
Refunding,
4%,
2/01/22
...................................
3,090,000
3,138,668
GO,
2012-A,
Refunding,
4%,
2/01/23
...................................
3,045,000
3,091,375
GO,
2012-A,
Refunding,
4%,
2/01/24
...................................
3,245,000
3,293,967
GO,
2012-A,
Refunding,
4%,
2/01/25
...................................
2,000,000
2,029,340
North
St.
Paul-Maplewood-Oakdale
Independent
School
District
No.
622
,
GO,
2019
A,
3%,
2/01/42
............................................
5,975,000
6,453,119
GO,
2019
A,
3%,
2/01/46
............................................
23,965,000
25,697,670
Northern
Municipal
Power
Agency
,
Revenue,
2013A,
5%,
1/01/30
........................................
1,190,000
1,303,919
Revenue,
2017,
Refunding,
5%,
1/01/41
.................................
800,000
947,896
Prior
Lake-Savage
Independent
School
District
No.
719
,
GO,
2018B,
Zero
Cpn
.,
2/01/27
.......................................
10,545,000
9,891,210
GO,
2018B,
Zero
Cpn
.,
2/01/28
.......................................
13,055,000
11,995,979
GO,
2018B,
Zero
Cpn
.,
2/01/30
.......................................
9,010,000
7,699,315
GO,
2018B,
Zero
Cpn
.,
2/01/31
.......................................
5,310,000
4,371,245
Rochester
Independent
School
District
No.
535
,
GO,
2020A,
4%,
2/01/28
............................................
4,300,000
5,346,491
GO,
2020A,
4%,
2/01/29
............................................
6,565,000
8,101,276
Rosemount-Apple
Valley-Eagan
Independent
School
District
No.
196
,
GO
,
2012C
,
Refunding
,
4
%
,
2/01/21
.............................................
1,365,000
1,386,785
Roseville
Independent
School
District
No.
623
,
GO,
2018A,
5%,
2/01/30
............................................
3,700,000
4,608,350
GO,
2018A,
4%,
2/01/34
............................................
9,535,000
10,919,959
Sartell-St.
Stephen
Independent
School
District
No.
748
,
GO,
2016B,
Zero
Cpn
.,
2/01/36
.......................................
3,000,000
1,944,090
GO,
2016B,
Zero
Cpn
.,
2/01/37
.......................................
2,820,000
1,753,842
GO,
2016B,
Zero
Cpn
.,
2/01/38
.......................................
5,220,000
3,124,640
GO,
2016B,
Zero
Cpn
.,
2/01/39
.......................................
3,020,000
1,739,218
South
Washington
County
Independent
School
District
No.
833
,
GO
,
2016
C
,
4
%
,
2/01/29
.........................................................
5,260,000
6,074,774
Southern
Minnesota
Municipal
Power
Agency
,
Revenue,
1994A,
NATL
Insured,
Zero
Cpn
.,
1/01/23
........................
4,000,000
3,947,040
Revenue,
1994A,
NATL
Insured,
Zero
Cpn
.,
1/01/26
........................
5,395,000
5,138,252
Revenue,
1994A,
NATL
Insured,
Zero
Cpn
.,
1/01/27
........................
6,600,000
6,163,740
Revenue,
2015
A,
Refunding,
5%,
1/01/46
...............................
9,345,000
11,031,866
Revenue,
2017
A,
5%,
1/01/42
........................................
1,315,000
1,602,985
Revenue,
2019
A,
5%,
1/01/32
........................................
700,000
927,080
Revenue,
2019
A,
5%,
1/01/33
........................................
560,000
736,602
Revenue,
2019
A,
5%,
1/01/34
........................................
610,000
798,685
St.
Cloud
Independent
School
District
No.
742
,
COP,
2017
A,
4%,
2/01/38
...........................................
1,000,000
1,084,740
GO,
2015A,
4%,
2/01/28
............................................
2,080,000
2,362,817
GO,
2017
B,
4%,
2/01/30
............................................
4,060,000
4,680,815
GO,
2017
B,
4%,
2/01/36
............................................
2,500,000
2,823,700
GO,
2017
B,
4%,
2/01/37
............................................
2,250,000
2,534,895
St.
Francis
Independent
School
District
No.
15
,
GO,
2018A,
4%,
2/01/37
............................................
1,025,000
1,084,460
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Minnesota
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
93
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Minnesota
(continued)
St.
Francis
Independent
School
District
No.
15,
(continued)
GO,
2018A,
3.5%,
2/01/41
...........................................
$
6,350,000
$
6,554,851
St.
Michael-Albertville
Independent
School
District
No.
885
,
GO
,
2011-A
,
Refunding
,
4.25
%
,
2/01/32
...................................................
10,295,000
10,759,716
St.
Paul
Independent
School
District
No.
625
,
GO,
2012A,
3%,
2/01/30
............................................
1,385,000
1,395,623
GO,
2012A,
3%,
2/01/31
............................................
1,195,000
1,203,748
GO,
2013B,
Refunding,
5%,
2/01/24
....................................
2,925,000
3,252,746
State
of
Minnesota
,
COP,
2014,
5%,
6/01/36
.............................................
3,615,000
4,147,381
GO,
2013F,
Refunding,
4%,
10/01/25
...................................
15,000,000
16,698,600
GO,
2016
A,
5%,
8/01/28
............................................
4,215,000
5,320,763
GO,
2018
A,
5%,
8/01/31
............................................
5,000,000
6,567,700
GO,
2019
A,
5%,
8/01/29
............................................
10,000,000
13,688,400
GO,
2019
A,
5%,
8/01/38
............................................
3,540,000
4,633,648
GO,
2020
A,
5%,
8/01/38
............................................
10,000,000
13,392,000
Revenue,
2012B,
Refunding,
4%,
3/01/26
...............................
3,000,000
3,153,720
Revenue,
2012B,
Refunding,
3%,
3/01/30
...............................
5,000,000
5,141,350
Revenue,
2014A,
5%,
6/01/38
........................................
8,500,000
9,349,320
University
of
Minnesota
,
Revenue,
2011B,
5%,
8/01/36
........................................
5,000,000
5,205,350
Revenue,
2014B,
5%,
1/01/38
........................................
4,500,000
5,116,050
Revenue,
2015
A,
Refunding,
5%,
8/01/25
...............................
5,000,000
6,072,800
Revenue,
2015
A,
Refunding,
5%,
8/01/28
...............................
7,225,000
8,589,658
Revenue,
2016
A,
5%,
4/01/41
........................................
5,000,000
6,073,900
Revenue,
2017
B,
Refunding,
5%,
12/01/30
..............................
5,575,000
7,118,773
Revenue,
2017A,
5%,
9/01/42
........................................
4,410,000
5,386,065
Revenue,
2019A,
5%,
4/01/39
........................................
1,805,000
2,309,967
Revenue,
2019A,
5%,
4/01/41
........................................
6,045,000
7,692,988
Revenue,
2019A,
5%,
4/01/44
........................................
8,505,000
10,761,887
Virginia
Independent
School
District
No.
706
,
Rock
Ridge
Independent
School
District
No.
2909,
GO,
2019A,
5%,
2/01/30
......
3,600,000
4,661,028
Rock
Ridge
Independent
School
District
No.
2909,
GO,
2019A,
3%,
2/01/40
......
3,295,000
3,555,865
Watertown-Mayer
Independent
School
District
No.
111
,
GO,
2020
A,
Zero
Cpn
.,
2/01/33
.......................................
2,470,000
1,956,734
GO,
2020
A,
Zero
Cpn
.,
2/01/34
.......................................
2,470,000
1,892,884
GO,
2020
A,
Zero
Cpn
.,
2/01/36
.......................................
1,470,000
1,052,138
GO,
2020
A,
Zero
Cpn
.,
2/01/37
.......................................
2,470,000
1,704,473
Waterville-Elysian-Morristown
Independent
School
District
No.
2143
,
GO
,
2019
A
,
3
%
,
2/01/32
.........................................................
1,995,000
2,202,360
West
St.
Paul-Mendota
Heights-Eagan
Independent
School
District
No.
197
,
GO
,
2018
A
,
4
%
,
2/01/34
....................................................
2,655,000
3,077,490
Western
Minnesota
Municipal
Power
Agency
,
Revenue,
2012A,
Refunding,
5%,
1/01/24
...............................
5,000,000
5,542,550
Revenue,
2012A,
Refunding,
5%,
1/01/25
...............................
3,370,000
3,733,185
Revenue,
2012A,
Refunding,
5%,
1/01/29
...............................
1,200,000
1,323,396
Revenue,
2014A,
Pre-Refunded,
5%,
1/01/40
.............................
8,075,000
9,337,607
Revenue,
2014A,
Pre-Refunded,
5%,
1/01/46
.............................
11,870,000
13,725,993
Revenue,
2015A,
Refunding,
5%,
1/01/35
...............................
3,000,000
3,616,740
Revenue,
2015A,
Refunding,
5%,
1/01/36
...............................
2,035,000
2,446,314
Revenue,
2018
A,
5%,
1/01/49
........................................
5,000,000
6,164,850
1,048,456,224
Total
Municipal
Bonds
(Cost
$975,848,902)
.....................................
1,048,456,224
a
a
a
a
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Minnesota
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
94
s
Short
Term
Investments
2.0%
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
2.0%
Minnesota
2.0%
b
City
of
Minneapolis/St.
Paul
Housing
&
Redevelopment
Authority
,
Allina
Health
Obligated
Group,
Revenue,
2009-B-1,
LOC
JPMorgan
Chase
Bank
NA,
Daily
VRDN
and
Put,
0.02%,
11/15/35
.................................
$
4,900,000
$
4,900,000
Allina
Health
Obligated
Group,
Revenue,
B-2,
LOC
JPMorgan
Chase
Bank
NA,
Daily
VRDN
and
Put,
0.02%,
11/15/35
.....................................
11,125,000
11,125,000
b
Minnesota
Higher
Education
Facilities
Authority
,
Concordia
University
St.
Paul
,
Revenue
,
6Q
,
LOC
US
Bank
NA
,
Daily
VRDN
and
Put
,
0.04
%
,
4/01/37
.........
5,445,000
5,445,000
21,470,000
Total
Municipal
Bonds
(Cost
$21,470,000)
......................................
21,470,000
Total
Short
Term
Investments
(Cost
$21,470,000
)
................................
21,470,000
a
Total
Investments
(Cost
$997,318,902)
100.7%
..................................
$1,069,926,224
Other
Assets,
less
Liabilities
(0.7)%
...........................................
(7,192,361)
Net
Assets
100.0%
...........................................................
$1,062,733,864
See
Abbreviations
on
page
155
.
a
Security
purchased
on
a
when-issued
basis.
See
Note
1(b).
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
Ohio
Tax-Free
Income
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
95
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
Year
Ended
February
28,
2019
b
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
..........................................
$13.20
$12.49
$12.38
Income
from
investment
operations
c
:
Net
investment
income
d
..................................................
0.16
0.35
0.17
Net
realized
and
unrealized
gains
(losses)
....................................
(0.08)
0.71
0.11
Total
from
investment
operations
.............................................
0.08
1.06
0.28
Less
distributions
from:
Net
investment
income
...................................................
(0.16)
(0.35)
(0.17)
Net
asset
value,
end
of
period
...............................................
$13.12
$13.20
$12.49
Total
return
e
............................................................
0.65%
8.60%
2.30%
Ratios
to
average
net
assets
f
Expenses
g
.............................................................
0.80%
0.81%
0.80%
Net
investment
income
....................................................
2.44%
2.69%
2.88%
Supplemental
data
Net
assets,
end
of
period
(000’s)
.............................................
$210,408
$160,174
$75,132
Portfolio
turnover
rate
.....................................................
7.67%
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
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
96
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
2019
2018
2017
2016
a
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$13.20
$12.49
$12.46
$12.56
$12.90
$12.91
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.17
0.37
0.38
0.38
0.41
0.44
Net
realized
and
unrealized
gains
(losses)
(0.09)
0.71
0.03
(0.10)
(0.34)
(0.01)
Total
from
investment
operations
........
0.08
1.08
0.41
0.28
0.07
0.43
Less
distributions
from:
Net
investment
income
..............
(0.17)
(0.37)
(0.38)
(0.38)
(0.41)
(0.44)
Net
asset
value,
end
of
period
..........
$13.11
$13.20
$12.49
$12.46
$12.56
$12.90
Total
return
d
.......................
0.65%
8.76%
3.34%
2.26%
0.52%
3.43%
Ratios
to
average
net
assets
e
Expenses
.........................
0.66%
f
0.66%
f
0.65%
f
0.64%
0.63%
0.63%
Net
investment
income
...............
2.61%
2.84%
3.03%
3.02%
3.17%
3.41%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$969,162
$996,280
$985,590
$1,090,194
$1,120,704
$1,186,318
Portfolio
turnover
rate
................
7.67%
4.56%
13.09%
15.46%
14.17%
6.53%
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,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Ohio
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
97
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
2019
2018
2017
2016
a
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$13.38
$12.66
$12.63
$12.72
$13.06
$13.07
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.14
0.30
0.31
0.32
0.34
0.37
Net
realized
and
unrealized
gains
(losses)
(0.09)
0.72
0.03
(0.10)
(0.34)
(0.01)
Total
from
investment
operations
........
0.05
1.02
0.34
0.22
—
0.36
Less
distributions
from:
Net
investment
income
..............
(0.14)
(0.30)
(0.31)
(0.31)
(0.34)
(0.37)
Net
asset
value,
end
of
period
..........
$13.29
$13.38
$12.66
$12.63
$12.72
$13.06
Total
return
d
.......................
0.36%
8.16%
2.72%
1.75%
(0.05)%
2.82%
Ratios
to
average
net
assets
e
Expenses
.........................
1.20%
f
1.21%
f
1.20%
f
1.19%
1.18%
1.18%
Net
investment
income
...............
2.04%
2.29%
2.48%
2.47%
2.62%
2.86%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$181,172
$203,367
$215,045
$308,088
$330,566
$322,560
Portfolio
turnover
rate
................
7.67%
4.56%
13.09%
15.46%
14.17%
6.53%
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,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Ohio
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
98
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
Year
Ended
February
28,
2018
b
2020
a
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
..............................
$13.22
$12.50
$12.47
$12.73
Income
from
investment
operations
c
:
Net
investment
income
d
......................................
0.18
0.38
0.39
0.23
Net
realized
and
unrealized
gains
(losses)
........................
(0.09)
0.73
0.03
(0.26)
Total
from
investment
operations
.................................
0.09
1.11
0.42
(0.03)
Less
distributions
from:
Net
investment
income
.......................................
(0.18)
(0.39)
(0.39)
(0.23)
Net
asset
value,
end
of
period
...................................
$13.13
$13.22
$12.50
$12.47
Total
return
e
................................................
0.79%
8.90%
3.47%
(0.24)%
Ratios
to
average
net
assets
f
Expenses
before
waiver
and
payments
by
affiliates
...................
0.53%
0.53%
0.53%
0.52%
Expenses
net
of
waiver
and
payments
by
affiliates
....................
0.52%
g
0.52%
g
0.51%
g
0.50%
Net
investment
income
........................................
2.73%
2.98%
3.17%
3.16%
Supplemental
data
Net
assets,
end
of
period
(000’s)
.................................
$12,981
$10,638
$6,942
$7,847
Portfolio
turnover
rate
.........................................
7.67%
4.56%
13.09%
15.46%
a
For
the
year
ended
February
29.
b
For
the
period
August
1,
2017
(effective
date)
to
February
28,
2018.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Ohio
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
99
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
2019
2018
2017
2016
a
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$13.21
$12.50
$12.47
$12.57
$12.91
$12.92
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.18
0.38
0.39
0.40
0.42
0.45
Net
realized
and
unrealized
gains
(losses)
(0.09)
0.71
0.03
(0.10)
(0.34)
(0.01)
Total
from
investment
operations
........
0.09
1.09
0.42
0.30
0.08
0.44
Less
distributions
from:
Net
investment
income
..............
(0.18)
(0.38)
(0.39)
(0.40)
(0.42)
(0.45)
Net
asset
value,
end
of
period
..........
$13.12
$13.21
$12.50
$12.47
$12.57
$12.91
Total
return
d
.......................
0.77%
8.86%
3.43%
2.36%
0.62%
3.53%
Ratios
to
average
net
assets
e
Expenses
.........................
0.56%
f
0.56%
f
0.55%
f
0.54%
0.53%
0.53%
Net
investment
income
...............
2.70%
2.94%
3.13%
3.12%
3.27%
3.51%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$263,674
$243,913
$179,427
$170,329
$143,603
$80,279
Portfolio
turnover
rate
................
7.67%
4.56%
13.09%
15.46%
14.17%
6.53%
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
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited),
August
31,
2020
Franklin
Ohio
Tax-Free
Income
Fund
franklintempleton.com
Semiannual
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
98.2%
Ohio
98.2%
American
Municipal
Power,
Inc.
,
Revenue,
2015A,
Refunding,
5%,
2/15/28
...............................
$
5,000,000
$
5,714,100
Revenue,
2015A,
Pre-Refunded,
BAM
Insured,
5.25%,
2/15/31
...............
10,000,000
10,735,300
Revenue,
2016
A,
4%,
2/15/36
........................................
1,000,000
1,117,450
Revenue,
2016
A,
5%,
2/15/46
........................................
5,000,000
5,812,300
Revenue,
2016A,
Refunding,
5%,
2/15/46
...............................
7,500,000
8,680,500
Revenue,
2017
A,
Refunding,
5%,
2/15/37
...............................
3,700,000
4,550,075
Revenue,
2017
A,
Refunding,
5%,
2/15/38
...............................
3,500,000
4,292,400
Revenue,
2019
A,
5%,
2/15/44
........................................
3,345,000
4,132,346
Revenue,
2019
C,
Refunding,
4%,
2/15/39
...............................
18,795,000
22,219,261
Revenue,
2020A,
4%,
2/15/44
........................................
1,215,000
1,398,611
Anthony
Wayne
Local
School
District
,
GO
,
2017
A
,
4
%
,
12/01/39
................
3,000,000
3,326,430
Apollo
Joint
Vocational
School
District
,
GO
,
2017
,
Refunding
,
4
%
,
12/01/39
........
6,530,000
7,518,120
Ashland
City
School
District
,
GO
,
2013-2
,
4
%
,
11/01/49
.......................
6,685,000
6,700,777
Bath
Local
School
District
,
GO,
2012,
AGMC
Insured,
4%,
12/01/44
................................
1,295,000
1,307,225
GO,
2012,
AGMC
Insured,
5%,
12/01/49
................................
5,380,000
5,444,076
Beaver
Local
School
District
,
GO
,
2012
,
4
%
,
12/01/40
........................
3,000,000
3,120,660
Big
Walnut
Local
School
District
,
GO
,
2019
,
5
%
,
12/01/53
.....................
9,155,000
11,225,220
Bloom-Carroll
Local
School
District
,
GO
,
2018A
,
5
%
,
11/01/55
..................
7,025,000
8,575,277
Bowling
Green
State
University
,
Revenue
,
2017
B
,
Refunding
,
5
%
,
6/01/42
........
3,250,000
3,837,470
Brecksville-Broadview
Heights
City
School
District
,
GO
,
2018
,
Pre-Refunded
,
5.25
%
,
12/01/54
........................................................
7,390,000
8,592,057
Brooklyn
City
School
District
,
GO,
2013,
Pre-Refunded,
AGMC
Insured,
5.25%,
12/01/43
..................
3,000,000
3,037,950
GO,
2017,
Refunding,
AGMC
Insured,
5%,
12/01/38
........................
1,905,000
2,313,775
GO,
2017,
Refunding,
AGMC
Insured,
5%,
12/01/49
........................
9,000,000
10,750,410
Canal
Winchester
Local
School
District
,
GO,
2005,
NATL
Insured,
Zero
Cpn
.,
12/01/32
............................
3,955,000
3,103,607
GO,
2005,
NATL
Insured,
Zero
Cpn
.,
12/01/33
............................
2,000,000
1,520,220
Central
Ohio
Solid
Waste
Authority
,
GO,
2012,
Pre-Refunded,
4%,
12/01/32
.................................
16,945,000
18,054,193
Chillicothe
City
School
District
,
GO,
2006,
Refunding,
NATL
Insured,
Zero
Cpn
.,
12/01/22
...................
1,905,000
1,885,016
GO,
2006,
Refunding,
NATL
Insured,
Zero
Cpn
.,
12/01/23
...................
1,905,000
1,869,415
GO,
2006,
Refunding,
NATL
Insured,
Zero
Cpn
.,
12/01/24
...................
1,905,000
1,851,317
Cincinnati
City
School
District
,
GO,
2006,
Refunding,
NATL
Insured,
5.25%,
12/01/27
......................
14,900,000
19,698,396
GO,
2006,
Refunding,
NATL
Insured,
5.25%,
12/01/28
......................
8,180,000
11,083,000
City
of
Akron
,
Community
Learning
Center,
Revenue,
2014,
Pre-Refunded,
5%,
12/01/33
......
4,250,000
4,607,170
Waterworks
System,
Revenue,
2009,
Refunding,
AGMC
Insured,
5%,
3/01/34
....
1,000,000
1,003,680
City
of
Chillicothe
,
Adena
Health
System
Obligated
Group
,
Revenue
,
2017
,
Refunding
,
5
%
,
12/01/37
.....................................................
5,000,000
5,937,350
City
of
Cincinnati
,
GO
,
2015A
,
Pre-Refunded
,
5.25
%
,
12/01/40
.................
6,500,000
8,029,255
City
of
Cleveland
,
GO,
2012,
Pre-Refunded,
5%,
12/01/30
.................................
2,965,000
3,283,945
GO,
2012,
5%,
12/01/30
.............................................
35,000
38,482
GO,
2020
A,
4%,
12/01/35
...........................................
1,000,000
1,232,220
GO,
2020
A,
2%,
12/01/36
...........................................
1,215,000
1,217,807
Airport
System,
Revenue,
2012A,
Pre-Refunded,
AGMC
Insured,
5%,
1/01/30
....
3,000,000
3,192,060
Airport
System,
Revenue,
2012A,
Pre-Refunded,
AGMC
Insured,
5%,
1/01/31
....
1,500,000
1,596,030
Water
Pollution
Control,
Revenue,
2016,
5%,
11/15/41
......................
2,000,000
2,379,920
City
of
Columbus
,
GO,
2014A,
5%,
2/15/25
............................................
5,000,000
5,812,650
GO,
2016-3,
Refunding,
5%,
2/15/27
...................................
5,000,000
6,421,700
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Ohio
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
101
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Ohio
(continued)
City
of
Columbus,
(continued)
GO,
2018
A,
5%,
4/01/34
............................................
$
7,000,000
$
9,084,250
Sewerage,
Revenue,
2014,
Refunding,
4%,
6/01/31
........................
15,000,000
16,836,450
Sewerage,
Revenue,
2015,
Refunding,
5%,
6/01/29
........................
5,000,000
6,240,500
City
of
Marysville
,
Wastewater
Treatment
System,
Revenue,
2015,
Refunding,
BAM
Insured,
4%,
12/01/40
.......................................................
3,015,000
3,271,607
Wastewater
Treatment
System,
Revenue,
2015,
Refunding,
BAM
Insured,
5%,
12/01/47
.......................................................
5,035,000
5,876,298
Wastewater
Treatment
System,
Revenue,
2016,
Refunding,
BAM
Insured,
4%,
12/01/46
.......................................................
9,370,000
10,239,442
City
of
Middleburg
Heights
,
Southwest
General
Health
Center
Obligated
Group
,
Revenue
,
2020
A
,
Refunding
,
4
%
,
8/01/47
...............................
4,425,000
5,034,234
City
of
St.
Bernard
,
Income
Tax
,
Revenue
,
2013
,
AGMC
Insured
,
5
%
,
12/01/43
.....
3,760,000
4,214,734
City
of
Toledo
,
GO,
2010,
Refunding,
AGMC
Insured,
5%,
12/01/28
........................
3,000,000
3,033,960
Water
System,
Revenue,
2012A,
4%,
11/15/36
............................
9,125,000
9,407,601
Water
System,
Revenue,
2013,
Refunding,
5%,
11/15/38
....................
19,395,000
21,488,884
City
of
Westerville
,
Revenue
,
2014
,
5
%
,
12/01/30
...........................
2,765,000
3,224,432
Cleveland
Department
of
Public
Utilities
Division
of
Public
Power
,
Revenue,
2020A,
Refunding,
AGMC
Insured,
4%,
11/15/38
..................
600,000
696,192
Revenue,
B-2,
NATL
Insured,
Zero
Cpn
.,
11/15/38
.........................
10,000,000
6,312,100
Cleveland
Department
of
Public
Utilities
Division
of
Water
,
Revenue,
2020
FF,
Refunding,
5%,
1/01/32
..............................
1,000,000
1,350,490
Revenue,
2020
FF,
Refunding,
5%,
1/01/33
..............................
1,000,000
1,341,240
Cleveland
Municipal
School
District
,
GO,
2013,
Refunding,
5%,
12/01/25
....................................
3,600,000
3,973,500
GO,
2013,
Refunding,
5%,
12/01/27
....................................
1,000,000
1,102,320
Cleveland
Public
Library
,
Revenue
,
2019
A
,
4
%
,
12/01/45
.....................
5,000,000
5,861,200
Columbus
Metropolitan
Library
,
Revenue,
2012-1,
4%,
12/01/28
.......................................
2,970,000
2,998,037
Revenue,
2012-1,
4%,
12/01/29
.......................................
4,125,000
4,163,940
Revenue,
2012-1,
4%,
12/01/37
.......................................
6,620,000
6,682,493
a
Revenue,
2020,
Refunding,
2%,
12/01/35
................................
4,525,000
4,413,323
a
Revenue,
2020,
Refunding,
2%,
12/01/36
................................
4,620,000
4,485,142
a
Revenue,
2020,
Refunding,
2%,
12/01/37
................................
4,705,000
4,532,232
County
of
Butler
,
Cincinnati
Children's
Hospital
Medical
Center
Obligated
Group,
Revenue,
2016
X,
Refunding,
5%,
5/15/29
............................................
6,750,000
8,874,562
Kettering
Health
Network
Obligated
Group,
Revenue,
2011,
6.375%,
4/01/36
.....
5,000,000
5,133,500
Kettering
Health
Network
Obligated
Group,
Revenue,
2011,
5.625%,
4/01/41
.....
5,000,000
5,111,700
UC
Health
Obligated
Group,
Revenue,
2016,
Refunding,
5%,
11/15/45
..........
20,270,000
23,436,782
UC
Health
Obligated
Group,
Revenue,
2017,
Refunding,
4%,
11/15/35
..........
2,000,000
2,235,880
UC
Health
Obligated
Group,
Revenue,
2017,
Refunding,
4%,
11/15/36
..........
2,140,000
2,384,217
UC
Health
Obligated
Group,
Revenue,
2017,
Refunding,
4%,
11/15/37
..........
1,500,000
1,666,605
County
of
Cuyahoga
,
Revenue,
2010F,
5%,
12/01/27
.......................................
15,000,000
15,155,850
Revenue,
2015,
Pre-Refunded,
5%,
12/01/25
.............................
500,000
575,530
County
of
Franklin
,
Nationwide
Children's
Hospital,
Inc.,
Revenue,
2016
C,
Refunding,
5%,
11/01/34
..
2,600,000
3,164,252
Nationwide
Children's
Hospital,
Inc.,
Revenue,
2016
C,
Refunding,
4%,
11/01/40
..
5,000,000
5,644,100
Nationwide
Children's
Hospital,
Inc.,
Revenue,
2017A,
Refunding,
4%,
11/01/44
...
7,050,000
7,904,742
OhioHealth
Obligated
Group,
Revenue,
2015,
5%,
5/15/33
...................
6,290,000
7,282,311
Sales
Tax,
Revenue,
2018,
5%,
6/01/43
.................................
6,000,000
7,509,240
Trinity
Health
Corp.
Obligated
Group,
Revenue,
2017,
5%,
12/01/46
............
7,500,000
8,902,125
Trinity
Health
Corp.
Obligated
Group,
Revenue,
2019
A,
4%,
12/01/44
..........
5,075,000
5,819,350
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Ohio
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Semiannual
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)
Ohio
(continued)
County
of
Hamilton
,
Cincinnati
Children's
Hospital
Medical
Center
Obligated
Group,
Revenue,
2019
CC,
5%,
11/15/49
...................................................
$
10,000,000
$
15,971,500
Sewer
System,
Revenue,
2019A,
Refunding,
5%,
12/01/33
..................
6,965,000
9,317,150
TriHealth
Obligated
Group,
Revenue,
2017A,
5%,
8/15/42
...................
5,000,000
5,973,500
University
of
Cincinnati,
Revenue,
2010,
Refunding,
AGMC
Insured,
5%,
6/01/30
..
7,000,000
7,025,620
University
of
Cincinnati,
Revenue,
2010,
Refunding,
AGMC
Insured,
4.75%,
6/01/39
7,000,000
7,021,490
County
of
Mahoning
,
Western
Reserve
Care
System
,
Revenue
,
1995
,
NATL
Insured
,
ETM,
5.5
%
,
10/15/25
...............................................
3,150,000
3,558,271
County
of
Miami
,
Kettering
Health
Network
Obligated
Group
,
Revenue
,
2019
,
Refunding
,
5
%
,
8/01/49
.............................................
12,000,000
14,371,080
County
of
Ross
,
Adena
Health
System
Obligated
Group
,
Revenue
,
2019
,
Refunding
,
5
%
,
12/01/49
............................................
5,000,000
6,020,100
County
of
Union
,
GO
,
2018
,
5
%
,
12/01/47
.................................
5,000,000
6,018,400
Coventry
Local
School
District
,
GO
,
2013
,
5.25
%
,
11/01/47
....................
5,000,000
5,264,900
Cuyahoga
Community
College
District
,
Revenue
,
2012D
,
Refunding
,
5
%
,
8/01/32
...
2,310,000
2,507,690
Dayton
City
School
District
,
GO
,
2014
,
Refunding
,
5
%
,
11/01/30
................
5,000,000
6,813,550
a
Dayton
Metro
Library
,
GO
,
2013A
,
Pre-Refunded
,
4.75
%
,
12/01/38
..............
20,000,000
21,138,200
Deer
Park
Community
City
School
District
,
GO
,
2017
A
,
5.25
%
,
12/01/53
.........
3,000,000
3,541,740
Defiance
City
School
District
,
GO
,
2014
,
Pre-Refunded
,
5
%
,
12/01/46
............
6,635,000
7,340,765
Delaware
City
School
District
,
GO
,
2013
,
Pre-Refunded
,
5.75
%
,
12/01/49
.........
6,000,000
6,910,020
Dublin
City
School
District
,
GO
,
2019
A
,
4
%
,
12/01/44
........................
10,000,000
11,817,400
Elyria
City
School
District
,
GO
,
2017A
,
5
%
,
12/01/43
.........................
5,500,000
6,637,950
Franklin
County
Convention
Facilities
Authority
,
Revenue
,
2014
,
Refunding
,
5
%
,
12/01/35
.....................................................
20,000,000
22,744,600
Fremont
City
School
District
,
GO
,
2017A
,
5
%
,
1/15/49
........................
13,970,000
16,489,489
Grandview
Heights
City
School
District
,
GO,
2019,
4%,
12/01/51
.............................................
1,980,000
2,273,555
GO,
2019,
5%,
12/01/53
.............................................
2,150,000
2,684,189
Greenville
City
School
District
,
GO
,
2013
,
Pre-Refunded
,
5.25
%
,
1/01/41
.........
2,000,000
2,133,300
Groveport-Madison
Local
School
District
,
GO
,
2014
,
Pre-Refunded
,
5
%
,
10/01/44
...
6,205,000
6,816,255
Highland
Local
School
District
,
GO
,
2018A
,
Pre-Refunded
,
5.25
%
,
12/01/54
.......
12,000,000
13,620,360
Hilliard
School
District
,
GO,
2005,
Refunding,
NATL
Insured,
Zero
Cpn
.,
12/01/20
...................
4,525,000
4,522,195
GO,
2017,
4%,
12/01/46
.............................................
10,000,000
11,217,800
Hillsdale
Local
School
District
,
COP,
2020,
BAM
Insured,
4%,
12/01/38
.................................
2,465,000
2,895,167
COP,
2020,
BAM
Insured,
4%,
12/01/40
.................................
1,435,000
1,673,612
Hudson
City
School
District
,
GO
,
2018
,
4
%
,
12/01/45
........................
18,870,000
20,958,154
Indian
Creek
Local
School
District
,
GO,
2018
A,
5%,
11/01/55
...........................................
3,000,000
3,641,910
GO,
2018B,
BAM
Insured,
5%,
11/01/55
.................................
3,910,000
4,733,602
JobsOhio
Beverage
System
,
Revenue,
Senior
Lien
,
2013A
,
Pre-Refunded
,
5
%
,
1/01/38
......................................................
26,010,000
28,911,416
Lakewood
City
School
District
,
GO
,
2014A
,
Pre-Refunded
,
5
%
,
11/01/43
..........
10,895,000
12,011,084
Lakota
Local
School
District
,
GO,
2005,
Refunding,
NATL
Insured,
5.25%,
12/01/26
......................
2,000,000
2,574,220
GO,
2014
C,
Refunding,
5%,
12/01/30
..................................
4,035,000
4,800,076
Lancaster
City
School
District
,
GO,
2012,
Pre-Refunded,
5%,
10/01/49
.................................
10,000,000
10,995,088
Little
Miami
Local
School
District
,
GO,
2018,
5%,
11/01/43
.............................................
1,000,000
1,189,990
GO,
2018,
5%,
11/01/48
.............................................
2,460,000
2,911,115
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Ohio
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
103
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Ohio
(continued)
Madeira
City
School
District
,
GO
,
Refunding
,
AGMC
Insured
,
5.25
%
,
12/01/32
.....
$
9,605,000
$
13,305,999
Marysville
Exempted
Village
School
District
,
GO,
2002,
Refunding,
NATL
Insured,
Zero
Cpn
.,
12/01/20
...................
1,000,000
999,110
GO,
2002,
Refunding,
NATL
Insured,
Zero
Cpn
.,
12/01/21
...................
1,000,000
995,110
Miami
University
,
Revenue,
2011,
Refunding,
5%,
9/01/31
.................................
4,000,000
4,184,160
Revenue,
2014,
Refunding,
5%,
9/01/31
.................................
2,320,000
2,721,128
Revenue,
2014,
Refunding,
5%,
9/01/34
.................................
3,500,000
4,088,525
Revenue,
2017,
Refunding,
5%,
9/01/41
.................................
5,000,000
5,969,450
Revenue,
2020A,
Refunding,
4%,
9/01/45
...............................
6,025,000
7,040,695
Miami
Valley
Career
Technology
Center
,
GO
,
2018
,
5
%
,
12/01/44
...............
20,000,000
24,551,000
Middletown
City
School
District
,
GO,
2014,
Pre-Refunded,
5.25%,
12/01/40
...............................
2,625,000
2,918,921
GO,
2014,
Pre-Refunded,
5.25%,
12/01/48
...............................
15,000,000
16,679,550
Napoleon
Area
City
School
District
,
GO
,
2012
,
Pre-Refunded
,
5
%
,
12/01/49
.......
11,460,000
12,423,098
New
Albany
Community
Authority
,
Revenue,
2012C,
Refunding,
5%,
10/01/23
..............................
1,100,000
1,205,105
Revenue,
2012C,
Refunding,
5%,
10/01/24
..............................
1,250,000
1,367,513
New
Albany
Plain
Local
School
District
,
GO
,
2013
,
Refunding
,
4
%
,
12/01/49
.......
10,000,000
10,467,900
Northeast
Ohio
Regional
Sewer
District
,
Revenue,
2014,
Pre-Refunded,
5%,
11/15/32
.............................
5,500,000
6,589,000
Revenue,
2014,
Refunding,
4%,
11/15/49
................................
6,000,000
6,478,080
Revenue,
2017,
Refunding,
4%,
11/15/43
................................
10,000,000
11,531,600
Revenue,
2019,
Refunding,
3%,
11/15/35
................................
4,500,000
5,041,620
Northeastern
Local
School
District
,
GO,
2018,
AGMC
Insured,
5.25%,
12/01/45
..............................
5,420,000
6,844,864
GO,
2018,
AGMC
Insured,
4%,
12/01/55
................................
5,000,000
5,627,000
Northmont
City
School
District
,
GO
,
2012A
,
Pre-Refunded
,
5
%
,
11/01/49
..........
5,130,000
5,417,947
Northwest
Local
School
District
,
GO,
2015,
Pre-Refunded,
5%,
12/01/45
.................................
3,760,000
4,334,603
GO,
2015,
4%,
12/01/50
.............................................
5,000,000
5,353,050
Norwood
City
School
District
,
GO,
2017
A,
5%,
11/01/46
...........................................
5,000,000
5,943,600
GO,
2017
A,
5.25%,
11/01/51
.........................................
7,645,000
9,204,962
Oakwood
City
School
District
,
GO
,
2019
,
4
%
,
12/01/48
.......................
6,340,000
7,275,974
Ohio
Air
Quality
Development
Authority
,
Buckeye
Power,
Inc.
,
Revenue
,
2010
,
6
%
,
12/01/40
........................................................
6,020,000
6,103,317
Ohio
Center
Local
Government
Capital
Asset
Financing
Program
,
GO
,
2003
,
Pre-
Refunded
,
AGMC
Insured
,
5.25
%
,
12/01/23
..............................
445,000
446,784
Ohio
Higher
Educational
Facility
Commission
,
Case
Western
Reserve
University,
Revenue,
2016,
Refunding,
5%,
12/01/40
.....
6,000,000
7,012,020
Denison
University,
Revenue,
2012,
5%,
11/01/26
.........................
1,445,000
1,548,390
Kenyon
College,
Revenue,
2016,
Refunding,
5%,
7/01/42
...................
10,500,000
12,104,085
Kenyon
College,
Revenue,
2017,
5%,
7/01/42
............................
1,250,000
1,471,350
Kenyon
College,
Revenue,
2017,
4%,
7/01/47
............................
5,000,000
5,472,100
Summa
Health
System
Obligated
Group,
Revenue,
2010,
AGMC
Insured,
5.25%,
11/15/40
.......................................................
21,805,000
21,860,821
Summa
Health
System
Obligated
Group,
Revenue,
2010,
AGMC
Insured,
5.75%,
11/15/40
.......................................................
1,665,000
1,669,928
University
of
Dayton,
Revenue,
2018
A,
4%,
12/01/43
.......................
11,885,000
13,205,899
Ohio
State
University
(The)
,
Revenue
,
2014A
,
4
%
,
12/01/30
...................
4,325,000
4,856,369
Ohio
Turnpike
&
Infrastructure
Commission
,
Revenue,
2018
A,
5%,
2/15/43
........................................
33,350,000
41,197,922
Revenue,
Junior
Lien,
2013
A-1,
5.25%,
2/15/33
...........................
4,200,000
4,608,114
Revenue,
Junior
Lien,
2013
A-2,
BAM
Insured,
Zero
Cpn
.,
2/15/38
.............
3,665,000
2,516,059
Revenue,
Junior
Lien,
2013
A-2,
Zero
Cpn
.,
2/15/43
........................
10,485,000
5,865,938
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Ohio
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Semiannual
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)
Ohio
(continued)
Ohio
University
,
Revenue
,
2017
A
,
Refunding
,
5
%
,
12/01/44
...................
$
7,000,000
$
8,399,650
Ohio
Water
Development
Authority
,
Revenue,
2019,
5%,
6/01/44
.........................................
4,000,000
5,179,400
Drinking
Water
Assistance
Fund,
Revenue,
2019,
5%,
12/01/29
...............
12,655,000
17,261,040
Water
Pollution
Control
Loan
Fund,
Revenue,
2019
B,
Refunding,
5%,
12/01/44
...
15,000,000
19,404,150
Water
Pollution
Control
Loan
Fund,
Revenue,
2020
A,
5%,
6/01/33
.............
7,250,000
9,844,848
Water
Pollution
Control
Loan
Fund,
Revenue,
2020
A,
5%,
12/01/38
............
5,405,000
7,196,109
Water
Pollution
Control
Loan
Fund,
Revenue,
2020
A,
5%,
12/01/39
............
5,000,000
6,615,300
Water
Pollution
Control
Loan
Fund,
Revenue,
2020
A,
5%,
12/01/50
............
2,500,000
3,240,000
Olentangy
Local
School
District
,
GO,
2016,
4%,
12/01/46
.............................................
15,235,000
16,993,729
GO,
2020
A,
3%,
12/01/38
...........................................
500,000
552,070
GO,
2020
A,
2.5%,
12/01/49
..........................................
6,935,000
6,968,912
Perrysburg
Exempted
Village
School
District
,
GO
,
2015
,
5
%
,
12/01/38
............
3,225,000
3,793,310
Princeton
City
School
District
,
COP,
2012,
Pre-Refunded,
4.5%,
12/01/41
...............................
3,000,000
3,161,370
GO,
2014,
Pre-Refunded,
5%,
12/01/39
.................................
12,000,000
14,400,960
GO,
2014,
Refunding,
Zero
Cpn
.,
12/01/40
...............................
6,000,000
3,841,860
GO,
2014,
Refunding,
Zero
Cpn
.,
12/01/41
...............................
6,000,000
3,718,140
Reading
Community
City
School
District
,
GO
,
2016A
,
5
%
,
11/01/46
..............
2,000,000
2,327,440
Revere
Local
School
District
,
GO,
2017
A,
Pre-Refunded,
5%,
12/01/42
...............................
3,025,000
3,279,221
GO,
2017
A,
Pre-Refunded,
5%,
12/01/45
...............................
2,560,000
2,775,142
Riverside
Local
School
District
,
GO
,
2017
A
,
Pre-Refunded
,
BAM
Insured
,
5
%
,
10/01/47
........................................................
5,000,000
5,840,200
Sandusky
City
School
District
,
GO
,
2017-1
,
Pre-Refunded
,
5
%
,
11/01/50
..........
6,000,000
6,475,020
South-Western
City
School
District
,
GO,
2012,
Pre-Refunded,
4%,
12/01/42
.................................
10,000,000
10,666,100
GO,
2019
A,
4%,
12/01/48
...........................................
3,500,000
4,105,885
Springboro
Community
City
School
District
,
GO,
2007,
Refunding,
AGMC
Insured,
5.25%,
12/01/27
.....................
5,175,000
6,722,635
GO,
2007,
Refunding,
AGMC
Insured,
5.25%,
12/01/28
.....................
2,000,000
2,655,340
State
of
Ohio
,
GO,
2017
A,
5%,
3/15/36
............................................
5,000,000
5,762,850
GO,
2018
A,
5%,
6/15/38
............................................
10,000,000
12,170,700
GO,
2019
A,
5%,
5/01/36
............................................
11,000,000
13,657,270
GO,
2019
A,
5%,
6/15/38
............................................
6,500,000
8,440,315
GO,
V,
5%,
5/01/33
................................................
1,000,000
1,289,380
GO,
V,
5%,
5/01/34
................................................
4,000,000
5,141,320
GO,
W,
5%,
5/01/32
................................................
1,035,000
1,416,656
GO,
W,
5%,
5/01/33
................................................
1,600,000
2,176,048
GO,
W,
5%,
5/01/35
................................................
1,125,000
1,517,918
Cleveland
Clinic
Health
System
Obligated
Group,
Revenue,
2017A,
Refunding,
3.25%,
1/01/35
..................................................
10,000,000
10,928,100
University
Hospitals
Health
System,
Inc.
Obligated
Group,
Revenue,
2020
A,
Refunding,
3%,
1/15/45
............................................
5,000,000
5,128,500
Strongsville
City
School
District
,
GO
,
2013
,
4
%
,
12/01/45
.....................
17,515,000
17,680,342
Summit
County
Development
Finance
Authority
,
University
of
Akron
(The),
Revenue,
2011,
Pre-Refunded,
6%,
1/01/42
..........
11,580,000
11,801,410
a
Switzerland
of
Ohio
Local
School
District
,
GO
,
2013
,
Pre-Refunded
,
4
%
,
12/01/37
...
5,500,000
6,062,705
Sycamore
Community
City
School
District
,
GO
,
2020
,
4
%
,
12/01/45
.............
6,500,000
7,592,520
Sylvania
City
School
District
,
GO
,
2015
,
Refunding
,
BAM
Insured
,
5
%
,
12/01/36
....
9,700,000
11,477,913
Three
Rivers
Local
School
District
,
GO
,
2014
,
Refunding
,
5
%
,
12/01/39
...........
5,885,000
6,873,680
Toledo
City
School
District
,
GO
,
2012B
,
Pre-Refunded
,
5
%
,
12/01/32
............
7,830,000
8,672,273
University
of
Akron
(The)
,
Revenue,
2015A,
Refunding,
5%,
1/01/31
...............................
4,365,000
5,000,806
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Ohio
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
105
s
See
Abbreviations
on
page
155
.
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Ohio
(continued)
University
of
Akron
(The),
(continued)
Revenue,
2016A,
Refunding,
BAM
Insured,
5%,
1/01/34
.....................
$
6,000,000
$
7,096,560
Revenue,
2016A,
Refunding,
5%,
1/01/36
...............................
11,065,000
12,952,136
Revenue,
2016A,
Refunding,
5%,
1/01/38
...............................
13,225,000
15,404,612
Revenue,
2018
A,
Refunding,
5%,
1/01/42
...............................
5,725,000
6,896,049
University
of
Cincinnati
,
Revenue,
2010-F,
5%,
6/01/32
........................................
140,000
141,525
Revenue,
Pre-Refunded,
5%,
6/01/32
..................................
5,665,000
5,730,997
Revenue,
2013
C,
Pre-Refunded,
5%,
6/01/39
............................
6,255,000
7,221,898
Revenue,
2018A,
Refunding,
4%,
6/01/48
...............................
10,000,000
11,338,300
Upper
Arlington
City
School
District
,
GO
,
2018
A
,
5
%
,
12/01/48
.................
13,000,000
15,967,640
Village
of
Bluffton
,
Blanchard
Valley
Health
System
Obligated
Group,
Revenue,
2017,
Refunding,
4%,
12/01/33
.......................................................
1,655,000
1,878,276
Blanchard
Valley
Health
System
Obligated
Group,
Revenue,
2017,
Refunding,
4%,
12/01/34
.......................................................
1,900,000
2,150,591
Warrensville
Heights
City
School
District
,
GO,
2019
A,
BAM
Insured,
5%,
12/01/44
................................
650,000
746,031
GO,
2019
A,
BAM
Insured,
5.25%,
12/01/55
..............................
1,740,000
2,003,279
West
Carrollton
City
School
District
,
GO,
2020
A,
3%,
12/01/44
...........................................
2,540,000
2,686,710
GO,
2020
A,
3%,
12/01/49
...........................................
1,645,000
1,731,198
GO,
2020
A,
4%,
12/01/56
...........................................
3,500,000
3,939,740
Westerville
City
School
District
,
GO
,
2006
,
Refunding
,
XLCA
Insured
,
5
%
,
12/01/27
..
3,820,000
4,877,605
Willoughby-Eastlake
City
School
District
,
GO
,
2016
,
Pre-Refunded
,
5
%
,
12/01/46
...
10,000,000
12,368,500
Winton
Woods
City
School
District
,
GO
,
2017
,
Refunding
,
4
%
,
11/01/43
...........
7,000,000
7,927,290
Wyoming
City
School
District
,
GO
,
2012
,
Pre-Refunded
,
5
%
,
12/01/42
............
7,250,000
7,859,290
Xenia
Community
School
District
,
GO
,
2014
,
Refunding
,
5
%
,
12/01/40
...........
7,285,000
8,406,890
1,607,963,387
Total
Municipal
Bonds
(Cost
$1,485,206,188)
...................................
1,607,963,387
a
a
a
a
Short
Term
Investments
0.5%
Municipal
Bonds
0.5%
Ohio
0.5%
b
County
of
Allen
,
Bon
Secours
Mercy
Health,
Inc.
,
Revenue
,
2010-C
,
LOC
Bank
of
Montreal
,
Daily
VRDN
and
Put
,
0.05
%
,
6/01/34
...........................
6,800,000
6,800,000
b
Ohio
Higher
Educational
Facility
Commission
,
Cleveland
Clinic
Health
System
Obligated
Group
,
Revenue
,
2013B-1
,
SPA
Wells
Fargo
Bank
NA
,
Daily
VRDN
and
Put
,
0.03
%
,
1/01/39
................................................
875,000
875,000
7,675,000
Total
Municipal
Bonds
(Cost
$7,675,000)
.......................................
7,675,000
Total
Short
Term
Investments
(Cost
$7,675,000
)
.................................
7,675,000
a
Total
Investments
(Cost
$1,492,881,188)
98.7%
..................................
$1,615,638,387
Other
Assets,
less
Liabilities
1.3%
.............................................
21,759,725
Net
Assets
100.0%
...........................................................
$1,637,398,112
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Ohio
Tax-Free
Income
Fund
(continued)
franklintempleton.com
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The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
106
a
Security
purchased
on
a
when-issued
basis.
See
Note
1(b).
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
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Franklin
Oregon
Tax
-
Free
Income
Fund
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accompanying
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are
an
integral
part
of
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statements.
Semiannual
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107
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
Year
Ended
February
28,
2019
b
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
..........................................
$12.00
$11.37
$11.30
Income
from
investment
operations
c
:
Net
investment
income
d
..................................................
0.14
0.30
0.16
Net
realized
and
unrealized
gains
(losses)
....................................
(0.15)
0.64
0.07
Total
from
investment
operations
.............................................
(0.01)
0.94
0.23
Less
distributions
from:
Net
investment
income
...................................................
(0.14)
(0.31)
(0.16)
Net
asset
value,
end
of
period
...............................................
$11.85
$12.00
$11.37
Total
return
e
............................................................
(0.09)%
8.39%
2.09%
Ratios
to
average
net
assets
f
Expenses
g
.............................................................
0.80%
0.80%
0.80%
Net
investment
income
....................................................
2.32%
2.58%
3.05%
Supplemental
data
Net
assets,
end
of
period
(000’s)
.............................................
$191,620
$162,664
$62,119
Portfolio
turnover
rate
.....................................................
11.80%
15.49%
9.09%
a
For
the
year
ended
February
29.
b
For
the
period
September
10,
2018
(effective
date)
to
February
28,
2019.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Oregon
Tax
-
Free
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
108
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
2019
2018
2017
2016
a
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$11.99
$11.36
$11.37
$11.60
$11.89
$12.02
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.15
0.32
0.36
0.37
0.40
0.42
Net
realized
and
unrealized
gains
(losses)
(0.15)
0.64
(0.01)
(0.22)
(0.29)
(0.12)
Total
from
investment
operations
........
—
0.96
0.35
0.15
0.11
0.30
Less
distributions
from:
Net
investment
income
..............
(0.15)
(0.33)
(0.36)
(0.38)
(0.40)
(0.43)
Net
asset
value,
end
of
period
..........
$11.84
$11.99
$11.36
$11.37
$11.60
$11.89
Total
return
d
.......................
(0.01)%
8.56%
3.13%
1.29%
0.90%
2.54%
Ratios
to
average
net
assets
e
Expenses
.........................
0.65%
f
0.65%
f
0.65%
f
0.64%
0.63%
0.63%
Net
investment
income
...............
2.48%
2.73%
3.20%
3.22%
3.37%
3.55%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$838,024
$866,593
$843,042
$932,929
$962,953
$960,516
Portfolio
turnover
rate
................
11.80%
15.49%
9.09%
12.63%
16.89%
11.84%
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,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Oregon
Tax
-
Free
Income
Fund
(continued)
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accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
109
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
2019
2018
2017
2016
a
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$12.19
$11.54
$11.55
$11.77
$12.06
$12.19
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.11
0.26
0.30
0.32
0.34
0.36
Net
realized
and
unrealized
gains
(losses)
(0.16)
0.66
(0.01)
(0.22)
(0.30)
(0.13)
Total
from
investment
operations
........
(0.05)
0.92
0.29
0.10
0.04
0.23
Less
distributions
from:
Net
investment
income
..............
(0.11)
(0.27)
(0.30)
(0.32)
(0.33)
(0.36)
Net
asset
value,
end
of
period
..........
$12.03
$12.19
$11.54
$11.55
$11.77
$12.06
Total
return
d
.......................
(0.36)%
8.05%
2.51%
0.80%
0.32%
1.95%
Ratios
to
average
net
assets
e
Expenses
.........................
1.20%
f
1.20%
f
1.20%
f
1.19%
1.18%
1.18%
Net
investment
income
...............
1.91%
2.18%
2.65%
2.67%
2.82%
3.00%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$109,187
$127,898
$128,133
$175,054
$197,041
$190,047
Portfolio
turnover
rate
................
11.80%
15.49%
9.09%
12.63%
16.89%
11.84%
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,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Oregon
Tax
-
Free
Income
Fund
(continued)
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The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
110
In
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
Year
Ended
February
28,
2018
b
2020
a
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
..............................
$12.00
$11.37
$11.38
$11.66
Income
from
investment
operations
c
:
Net
investment
income
d
......................................
0.15
0.33
0.38
0.23
Net
realized
and
unrealized
gains
(losses)
........................
(0.15)
0.64
(0.02)
(0.29)
Total
from
investment
operations
.................................
—
0.97
0.36
(0.06)
Less
distributions
from:
Net
investment
income
.......................................
(0.15)
(0.34)
(0.37)
(0.22)
Net
asset
value,
end
of
period
...................................
$11.85
$12.00
$11.37
$11.38
Total
return
e
................................................
0.06%
8.69%
3.24%
(0.50)%
Ratios
to
average
net
assets
f
Expenses
before
waiver
and
payments
by
affiliates
...................
0.53%
0.53%
0.53%
0.53%
Expenses
net
of
waiver
and
payments
by
affiliates
....................
0.52%
g
0.52%
g
0.52%
g
0.51%
Net
investment
income
........................................
2.61%
2.86%
3.33%
3.35%
Supplemental
data
Net
assets,
end
of
period
(000’s)
.................................
$20,551
$19,823
$13,308
$13,217
Portfolio
turnover
rate
.........................................
11.80%
15.49%
9.09%
12.63%
a
For
the
year
ended
February
29.
b
For
the
period
August
1,
2017
(effective
date)
to
February
28,
2018.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Oregon
Tax
-
Free
Income
Fund
(continued)
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accompanying
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are
an
integral
part
of
these
financial
statements.
Semiannual
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111
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
2019
2018
2017
2016
a
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$12.01
$11.37
$11.38
$11.61
$11.90
$12.03
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.15
0.33
0.37
0.39
0.41
0.43
Net
realized
and
unrealized
gains
(losses)
(0.15)
0.65
(0.01)
(0.23)
(0.29)
(0.12)
Total
from
investment
operations
........
—
0.98
0.36
0.16
0.12
0.31
Less
distributions
from:
Net
investment
income
..............
(0.15)
(0.34)
(0.37)
(0.39)
(0.41)
(0.44)
Net
asset
value,
end
of
period
..........
$11.86
$12.01
$11.37
$11.38
$11.61
$11.90
Total
return
d
.......................
0.04%
8.75%
3.22%
1.38%
0.99%
2.64%
Ratios
to
average
net
assets
e
Expenses
.........................
0.55%
f
0.55%
f
0.55%
f
0.54%
0.53%
0.53%
Net
investment
income
...............
2.57%
2.83%
3.30%
3.32%
3.47%
3.65%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$156,418
$145,073
$107,253
$101,300
$96,539
$51,607
Portfolio
turnover
rate
................
11.80%
15.49%
9.09%
12.63%
16.89%
11.84%
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
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited),
August
31,
2020
Franklin
Oregon
Tax-Free
Income
Fund
franklintempleton.com
Semiannual
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
92.9%
Oregon
92.0%
Astoria
Hospital
Facilities
Authority
,
Columbia
Lutheran
Charities
Obligated
Group,
Revenue,
2012,
Refunding,
5%,
8/01/28
........................................................
$
1,325,000
$
1,416,677
Columbia
Lutheran
Charities
Obligated
Group,
Revenue,
2016,
5%,
8/01/41
......
4,250,000
4,910,705
Columbia
Lutheran
Charities
Obligated
Group,
Revenue,
2016,
4%,
8/01/46
......
1,750,000
1,896,720
Benton
&
Polk
School
District
No.
17J
,
GO
,
2010B
,
Zero
Cpn
.,
6/15/31
...........
1,000,000
850,370
Central
Lincoln
People's
Utility
District
JATC,
Inc.
,
Revenue
,
2016
,
5
%
,
12/01/45
....
2,900,000
3,449,666
City
of
Beaverton
,
Water,
Revenue,
2020,
5%,
4/01/35
....................................
1,675,000
2,222,223
Water,
Revenue,
2020,
5%,
4/01/36
....................................
1,760,000
2,324,326
Water,
Revenue,
2020,
5%,
4/01/37
....................................
1,850,000
2,433,620
Water,
Revenue,
2020,
5%,
4/01/38
....................................
1,940,000
2,533,368
Water,
Revenue,
2020,
5%,
4/01/39
....................................
2,040,000
2,655,631
Water,
Revenue,
2020,
5%,
4/01/40
....................................
2,140,000
2,777,677
City
of
Eugene
,
Electric
Utility
System,
Revenue,
2011
A,
Pre-Refunded,
5%,
8/01/40
...........
6,745,000
7,042,387
Electric
Utility
System,
Revenue,
2017,
5%,
8/01/47
........................
3,580,000
4,353,065
Electric
Utility
System,
Revenue,
2020
A,
4%,
8/01/45
......................
4,170,000
4,966,887
Electric
Utility
System,
Revenue,
2020
A,
4%,
8/01/49
......................
2,500,000
2,957,675
Water
Utility
System,
Revenue,
2011,
Pre-Refunded,
5%,
8/01/40
.............
4,425,000
4,620,099
City
of
Forest
Grove
,
Oak
Tree
Foundation,
Inc.,
Revenue,
2017,
Refunding,
4%,
3/01/37
............
3,500,000
3,251,395
Pacific
University,
Revenue,
2015A,
Refunding,
5%,
5/01/36
..................
2,500,000
2,691,750
City
of
Keizer
,
Special
Assessment
,
2008
,
5.2
%
,
6/01/31
......................
1,600,000
1,606,080
City
of
Portland
,
GO,
2001-B,
Zero
Cpn
.,
6/01/21
.......................................
1,000,000
998,430
GO,
2011
A,
Refunding,
5%,
6/01/28
...................................
7,840,000
8,112,361
GO,
2011
A,
Refunding,
5%,
6/01/29
...................................
8,330,000
8,618,718
GO,
2011
A,
Refunding,
5%,
6/01/30
...................................
8,750,000
9,049,250
Tax
Allocation,
2011B,
5%,
6/15/29
.....................................
1,000,000
1,035,330
Tax
Allocation,
2011B,
5%,
6/15/30
.....................................
1,000,000
1,035,090
Tax
Allocation,
2011B,
5%,
6/15/31
.....................................
1,000,000
1,034,690
Tax
Allocation,
2012B,
Refunding,
5%,
6/15/22
............................
1,035,000
1,123,917
Tax
Allocation,
2012C,
5%,
6/15/28
....................................
1,000,000
1,079,920
Tax
Allocation,
2012C,
5%,
6/15/30
....................................
1,000,000
1,079,360
Water
System,
Revenue,
Second
Lien,
2019
A,
5%,
5/01/44
..................
5,500,000
7,087,740
City
of
Sherwood
,
GO
,
2011
,
AGMC
Insured
,
5
%
,
6/01/36
.....................
4,240,000
4,379,496
City
of
Tigard
,
Water,
Revenue,
2012,
5%,
8/01/37
....................................
11,050,000
11,962,509
Water,
Revenue,
2012,
5%,
8/01/42
....................................
20,915,000
22,600,331
Water,
Revenue,
2015,
5%,
8/01/45
....................................
23,545,000
27,781,687
Clackamas
Community
College
District
,
GO,
2017A,
5%,
6/15/38
............................................
760,000
927,694
GO,
2017A,
5%,
6/15/39
............................................
1,000,000
1,217,850
GO,
2017A,
5%,
6/15/40
............................................
1,250,000
1,519,063
Clackamas
County
School
District
No.
12
North
Clackamas
,
GO,
2017A,
Zero
Cpn
.,
6/15/40
.......................................
10,000,000
4,883,000
GO,
2017A,
Zero
Cpn
.,
6/15/41
.......................................
17,030,000
7,923,718
GO,
2017A,
Zero
Cpn
.,
6/15/42
.......................................
16,625,000
7,369,364
GO,
2017B,
5%,
6/15/34
............................................
8,000,000
9,998,480
GO,
2017B,
5%,
6/15/37
............................................
10,000,000
12,381,900
GO,
2018,
5%,
6/15/42
.............................................
1,750,000
2,189,373
Clackamas
County
School
District
No.
46
Oregon
Trail
,
GO,
Zero
Cpn
.,
6/15/37
.............................................
12,130,000
8,558,200
GO,
Zero
Cpn
.,
6/15/38
.............................................
12,495,000
8,526,213
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Oregon
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
113
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Oregon
(continued)
Clackamas
County
School
District
No.
7J
Lake
Oswego
,
GO
,
2005
,
Refunding
,
AGMC
Insured
,
5.25
%
,
6/01/25
.............................................
$
3,075,000
$
3,779,944
Clackamas
County
School
District
No.
86
Canby
,
GO,
2020
A,
Refunding,
4%,
6/15/35
...................................
580,000
720,157
GO,
2020
A,
Refunding,
4%,
6/15/36
...................................
3,000,000
3,707,250
GO,
2020
A,
Refunding,
4%,
6/15/38
...................................
2,815,000
3,447,418
GO,
2020
A,
Refunding,
4%,
6/15/40
...................................
2,670,000
3,246,800
Clackamas
River
Water
,
Revenue
,
2016
,
5
%
,
11/01/43
.......................
1,970,000
2,318,651
Coos
County
School
District
No.
13
North
Bend
,
GO
,
2002
,
AGMC
Insured
,
5
%
,
6/15/22
.........................................................
55,000
55,212
Coos
County
School
District
No.
9
Coos
Bay
,
GO,
2018,
5%,
6/15/43
.............................................
5,005,000
6,248,592
GO,
2020,
5%,
6/15/42
.............................................
1,770,000
2,292,203
GO,
2020,
5%,
6/15/43
.............................................
1,155,000
1,491,983
Crook
County
School
District
,
GO,
2013,
Pre-Refunded,
5%,
6/15/34
..................................
4,475,000
5,063,463
GO,
2013,
Pre-Refunded,
5%,
6/15/37
..................................
8,090,000
9,153,835
Deschutes
&
Jefferson
Counties
School
District
No.
2J
Redmond
,
GO
,
2004A
,
Pre-
Refunded
,
NATL
Insured
,
5
%
,
6/15/21
..................................
85,000
85,332
Deschutes
County
Hospital
Facilities
Authority
,
St.
Charles
Health
System,
Inc.
,
Revenue
,
2016
A
,
Refunding
,
5
%
,
1/01/48
...............................
8,440,000
9,607,168
Hospital
Facilities
Authority
of
Multnomah
County
Oregon
,
Terwilliger
Plaza,
Inc.
,
Revenue
,
2012
,
Refunding
,
5
%
,
12/01/29
................................
3,690,000
3,839,261
Jackson
County
School
District
No.
5
Ashland
,
GO,
2019,
5%,
6/15/42
.............................................
5,970,000
7,620,407
GO,
2019,
5%,
6/15/43
.............................................
6,495,000
8,271,447
GO,
2019,
5%,
6/15/44
.............................................
6,000,000
7,624,020
Jackson
County
School
District
No.
6
Central
Point
,
GO,
2019
B,
Zero
Cpn
.,
6/15/40
.......................................
705,000
403,359
GO,
2019
B,
Zero
Cpn
.,
6/15/41
.......................................
710,000
389,286
GO,
2019
B,
Zero
Cpn
.,
6/15/42
.......................................
610,000
320,878
GO,
2019
B,
Zero
Cpn
.,
6/15/43
.......................................
820,000
413,928
GO,
2019
B,
Zero
Cpn
.,
6/15/44
.......................................
1,115,000
539,626
GO,
2019
B,
Zero
Cpn
.,
6/15/45
.......................................
985,000
458,153
GO,
2019
B,
Zero
Cpn
.,
6/15/46
.......................................
1,190,000
529,324
GO,
2019
B,
Zero
Cpn
.,
6/15/47
.......................................
1,170,000
499,801
GO,
2019
B,
Zero
Cpn
.,
6/15/48
.......................................
1,320,000
541,042
GO,
2019
B,
Zero
Cpn
.,
6/15/49
.......................................
1,270,000
500,316
Jefferson
County
School
District
No.
509J
,
GO,
2013,
Pre-Refunded,
5%,
6/15/30
..................................
1,000,000
1,131,500
GO,
2013,
Pre-Refunded,
5%,
6/15/31
..................................
1,410,000
1,595,415
GO,
2013B,
Pre-Refunded,
5%,
6/15/30
.................................
2,000,000
2,263,000
Klamath
County
School
District
,
GO,
2013,
5%,
6/15/29
.............................................
1,155,000
1,299,052
GO,
2013,
5%,
6/15/30
.............................................
1,095,000
1,230,922
GO,
2013,
5%,
6/15/31
.............................................
1,000,000
1,122,940
Klamath
Falls
Intercommunity
Hospital
Authority
,
Sky
Lakes
Medical
Center,
Inc.
,
Revenue
,
2016
,
Refunding
,
5
%
,
9/01/46
.................................
1,000,000
1,133,140
Lane
&
Douglas
Counties
School
District
No.
28J
Fern
Ridge
,
GO,
2014
A,
5%,
6/15/30
............................................
3,175,000
3,924,046
GO,
2014
A,
5%,
6/15/33
............................................
2,115,000
2,595,168
GO,
2014
A,
5%,
6/15/36
............................................
2,000,000
2,433,940
Lane
Community
College
,
GO,
2020
A,
4%,
6/15/37
............................................
5,345,000
6,524,962
GO,
2020
A,
4%,
6/15/38
............................................
2,500,000
3,048,950
GO,
2020
A,
4%,
6/15/39
............................................
1,400,000
1,701,924
GO,
2020
A,
4%,
6/15/40
............................................
1,200,000
1,455,600
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Oregon
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Semiannual
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)
Oregon
(continued)
Lebanon
Rural
Fire
Protection
District
,
GO
,
2020
,
BAM
Insured
,
4
%
,
6/15/45
.......
$
5,000,000
$
5,549,100
Marion
&
Linn
Counties
School
District
No.
14J
Jefferson
,
GO
,
2017
B
,
5
%
,
6/15/41
.
1,360,000
1,653,488
Marion
County
School
District
No.
103
Woodburn
,
GO,
2015,
5%,
6/15/33
.............................................
2,930,000
3,485,938
GO,
2015,
5%,
6/15/34
.............................................
3,200,000
3,800,576
GO,
2015,
5%,
6/15/35
.............................................
2,075,000
2,458,024
Medford
Hospital
Facilities
Authority
,
Asante
Health
System
Obligated
Group,
Revenue,
2020A,
Refunding,
5%,
8/15/45
4,500,000
5,666,985
Rogue
Valley
Manor,
Revenue,
2013A,
Refunding,
5%,
10/01/33
..............
1,500,000
1,597,785
Rogue
Valley
Manor,
Revenue,
2013A,
Refunding,
5%,
10/01/42
..............
9,420,000
9,949,027
Metro
,
County
of
Multnomah,
Revenue,
2017,
5%,
6/15/42
........................
7,500,000
9,073,125
County
of
Multnomah,
Revenue,
2017,
5%,
6/15/47
........................
10,950,000
13,157,411
Multnomah
&
Clackamas
Counties
School
District
No.
10JT
Gresham-Barlow
,
GO,
2017B,
5%,
6/15/37
............................................
7,885,000
9,792,066
GO,
2019A,
Zero
Cpn
.,
6/15/39
.......................................
9,500,000
5,507,435
Multnomah
County
School
District
No.
3
Parkrose
,
GO,
2011A,
Pre-Refunded,
5%,
6/30/35
.................................
2,000,000
2,079,360
GO,
2011A,
Pre-Refunded,
5%,
6/30/36
.................................
1,500,000
1,559,520
Multnomah
County
School
District
No.
40
,
GO,
2012B,
Zero
Cpn
.,
6/15/24
.......................................
1,640,000
1,607,577
GO,
2012B,
Zero
Cpn
.,
6/15/25
.......................................
1,325,000
1,285,303
GO,
2012B,
Zero
Cpn
.,
6/15/26
.......................................
2,585,000
2,465,883
GO,
2012B,
Zero
Cpn
.,
6/15/27
.......................................
2,655,000
2,485,770
GO,
2012B,
Zero
Cpn
.,
6/15/28
.......................................
2,495,000
2,286,618
GO,
2012B,
Zero
Cpn
.,
6/15/29
.......................................
2,595,000
2,327,897
GO,
2012B,
Zero
Cpn
.,
6/15/30
.......................................
1,885,000
1,646,491
GO,
2012B,
Zero
Cpn
.,
6/15/31
.......................................
2,030,000
1,726,251
GO,
2012B,
Zero
Cpn
.,
6/15/32
.......................................
2,000,000
1,651,440
Multnomah
County
School
District
No.
7
Reynolds
,
GO
,
2010
,
Refunding
,
5
%
,
6/01/35
6,605,000
6,620,720
Oregon
City
School
District
No.
62
,
GO,
2014,
Pre-Refunded,
MAC
Insured,
5%,
6/01/29
.......................
440,000
516,278
GO,
2014,
MAC
Insured,
5%,
6/01/29
...................................
560,000
651,689
GO,
2014,
Pre-Refunded,
MAC
Insured,
5%,
6/01/34
.......................
780,000
915,221
GO,
2014,
MAC
Insured,
5%,
6/01/34
...................................
990,000
1,145,697
GO,
2014,
Pre-Refunded,
MAC
Insured,
5%,
6/01/39
.......................
550,000
645,348
GO,
2014,
MAC
Insured,
5%,
6/01/39
...................................
700,000
812,910
GO,
2018
B,
Refunding,
5%,
6/15/49
...................................
20,000,000
24,865,400
Oregon
Health
&
Science
University
,
Oregon
Health
&
Science
University
Obligated
Group,
Revenue,
1995A&B,
NATL
Insured,
Zero
Cpn
.,
7/01/21
........................................
2,320,000
2,314,803
Oregon
Health
&
Science
University
Obligated
Group,
Revenue,
2017
A,
5%,
7/01/42
10,000,000
12,102,400
Oregon
State
Facilities
Authority
,
CHF-Ashland
LLC,
Revenue,
2012,
AGMC
Insured,
5%,
7/01/44
..............
8,910,000
9,551,342
a
CHNW
Clifton
House
LLC,
Revenue,
144A,
A,
4%,
10/01/26
.................
1,675,000
1,658,903
a
CHNW
Clifton
House
LLC,
Revenue,
144A,
A,
5%,
10/01/36
.................
1,670,000
1,666,276
a
CHNW
Clifton
House
LLC,
Revenue,
144A,
A,
5%,
10/01/48
.................
4,000,000
3,922,920
Legacy
Health
Obligated
Group,
Revenue,
2016
A,
Refunding,
5%,
6/01/46
......
8,000,000
9,196,240
Lewis
&
Clark
College,
Revenue,
2011
A,
Pre-Refunded,
5.75%,
10/01/41
.......
30,000,000
31,789,500
Linfield
University,
Revenue,
2010A,
5%,
10/01/31
.........................
2,000,000
2,004,480
Linfield
University,
Revenue,
2010A,
5%,
10/01/34
.........................
2,975,000
2,981,039
Linfield
University,
Revenue,
2010A,
5.25%,
10/01/40
.......................
3,750,000
3,757,575
Providence
St.
Joseph
Health
Obligated
Group,
Revenue,
2015
C,
5%,
10/01/45
..
4,000,000
4,555,880
Samaritan
Health
Services,
Inc.
Obligated
Group,
Revenue,
2010A,
Pre-Refunded,
5.25%,
10/01/40
.................................................
13,990,000
14,046,659
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Oregon
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
115
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Oregon
(continued)
Oregon
State
Facilities
Authority,
(continued)
Samaritan
Health
Services,
Inc.
Obligated
Group,
Revenue,
2016
A,
Refunding,
5%,
10/01/41
.......................................................
$
7,800,000
$
8,945,820
Samaritan
Health
Services,
Inc.
Obligated
Group,
Revenue,
2016
A,
Refunding,
5%,
10/01/46
.......................................................
3,500,000
3,986,465
Samaritan
Health
Services,
Inc.
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
10/01/40
.......................................................
8,125,000
9,976,444
Willamette
University,
Revenue,
2016
B,
Refunding,
5%,
10/01/40
.............
1,950,000
2,213,172
Oregon
State
Lottery
,
Revenue,
2013A,
5%,
4/01/28
........................................
5,800,000
6,484,168
Revenue,
2013A,
5%,
4/01/32
........................................
5,000,000
5,562,400
Oregon
State
University
,
Revenue
,
2015A
,
5
%
,
4/01/45
.......................
12,500,000
14,291,375
Port
of
Portland
,
Airport,
Revenue,
TWENTY-
FOUR
A,
5%,
7/01/47
.........................
4,700,000
5,495,428
Airport,
Revenue,
TWENTY-
FOUR
B,
5%,
7/01/47
.........................
9,395,000
10,751,450
Airport,
Revenue,
TWENTY
SIX
B,
Refunding,
5%,
7/01/33
..................
650,000
838,617
Airport,
Revenue,
TWENTY
SIX
B,
Refunding,
5%,
7/01/37
..................
800,000
1,015,608
Airport,
Revenue,
TWENTY
SIX
B,
Refunding,
5%,
7/01/40
..................
675,000
848,920
Airport,
Revenue,
TWENTY
SIX
C,
Refunding,
5%,
7/01/28
..................
1,300,000
1,635,218
Airport,
Revenue,
TWENTY-FIVE
A,
5%,
7/01/49
..........................
12,425,000
14,999,336
Airport,
Revenue,
TWENTY-FIVE
B,
5%,
7/01/44
..........................
16,250,000
19,485,700
Airport,
Revenue,
TWENTY-SIX
A,
Refunding,
5%,
7/01/33
..................
500,000
645,090
Airport,
Revenue,
TWENTY-SIX
A,
Refunding,
4%,
7/01/37
..................
600,000
696,690
Airport,
Revenue,
TWENTY-SIX
A,
Refunding,
4%,
7/01/40
..................
500,000
575,010
Salem
Hospital
Facility
Authority
,
Capital
Manor,
Inc.
Obligated
Group,
Revenue,
2018,
5%,
5/15/33
.............
555,000
607,081
Capital
Manor,
Inc.
Obligated
Group,
Revenue,
2018,
5%,
5/15/38
.............
500,000
540,420
Capital
Manor,
Inc.
Obligated
Group,
Revenue,
2018,
5%,
5/15/43
.............
2,250,000
2,410,245
Capital
Manor,
Inc.
Obligated
Group,
Revenue,
2018,
5%,
5/15/48
.............
2,700,000
2,879,172
Capital
Manor,
Inc.
Obligated
Group,
Revenue,
2018,
5%,
5/15/53
.............
1,000,000
1,062,950
Salem
Health
Obligated
Group,
Revenue,
2016
A,
Refunding,
5%,
5/15/46
.......
40,500,000
47,055,735
Salem-Keizer
School
District
No.
24J
,
GO,
2009B,
Zero
Cpn
.,
6/15/30
.......................................
8,500,000
7,388,540
GO,
2020
A,
Zero
Cpn
.,
6/15/39
.......................................
2,805,000
1,755,481
GO,
2020
A,
Zero
Cpn
.,
6/15/40
.......................................
4,500,000
2,718,090
GO,
2020
C,
4%,
6/15/37
............................................
5,000,000
6,149,650
GO,
2020
C,
4%,
6/15/38
............................................
10,000,000
12,206,000
Santiam
Canyon
School
District
129J
,
GO,
2019,
5%,
6/15/39
.............................................
1,000,000
1,277,700
GO,
2019,
5%,
6/15/44
.............................................
2,330,000
2,928,158
Seaside
School
District
No.
10
,
GO,
2017B,
5%,
6/15/35
............................................
2,000,000
2,491,660
GO,
2017B,
5%,
6/15/36
............................................
2,500,000
3,104,050
State
of
Oregon
,
GO,
2007
A,
4.7%,
8/01/42
...........................................
3,050,000
3,057,442
GO,
2015
M,
5%,
8/01/45
............................................
3,315,000
3,894,197
GO,
2015
O,
5%,
8/01/40
............................................
7,005,000
8,283,833
GO,
2017
A,
5%,
5/01/42
............................................
10,000,000
12,276,700
GO,
2017
H,
5%,
8/01/42
............................................
15,000,000
18,528,150
GO,
2019
A,
5%,
5/01/44
............................................
5,000,000
6,388,550
GO,
2019
G,
5%,
8/01/44
............................................
25,370,000
32,562,649
GO,
2020
E,
Refunding,
5%,
6/01/39
...................................
1,785,000
2,365,196
GO,
2020
E,
Refunding,
5%,
6/01/40
...................................
1,640,000
2,166,686
GO,
H,
Pre-Refunded,
5%,
5/01/36
....................................
1,000,000
1,080,040
GO,
L,
Refunding,
5%,
8/01/42
........................................
3,270,000
4,039,137
Department
of
Transportation,
Revenue,
Sub.
Lien,
2019A,
Refunding,
5%,
11/15/37
12,500,000
16,389,750
Department
of
Transportation,
Revenue,
Sub.
Lien,
2019A,
Refunding,
5%,
11/15/42
30,000,000
38,767,800
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Oregon
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Semiannual
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)
Oregon
(continued)
State
of
Oregon,
(continued)
Housing
&
Community
Services
Department,
Revenue,
2010C,
4.75%,
7/01/42
...
$
65,000
$
65,076
Housing
&
Community
Services
Department,
Revenue,
2018
B,
2.9%,
7/01/43
....
29,020,000
30,123,630
Housing
&
Community
Services
Department,
Revenue,
2019A,
2.9%,
7/01/43
....
13,905,000
14,606,507
Tillamook
&
Yamhill
Counties
School
District
No.
101
Nestucca
Valley
,
GO,
2018
B,
5%,
6/15/36
............................................
2,850,000
3,647,316
GO,
2018
B,
5%,
6/15/37
............................................
2,520,000
3,214,966
Tri-County
Metropolitan
Transportation
District
of
Oregon
,
Revenue,
2012
A,
Pre-Refunded,
5%,
9/01/37
............................
11,000,000
12,054,240
Revenue,
2015
A,
Pre-Refunded,
5%,
9/01/40
............................
6,000,000
7,404,360
Revenue,
2018
A,
5%,
10/01/32
.......................................
6,865,000
8,598,756
Revenue,
2018
A,
4%,
9/01/48
........................................
7,850,000
8,903,234
Revenue,
2018
A,
5%,
9/01/48
........................................
18,505,000
22,667,885
Revenue,
Senior
Lien,
2017
A,
5%,
9/01/41
..............................
18,650,000
22,976,800
Umatilla
County
School
District
No.
16R
Pendleton
,
GO
,
2014A
,
Pre-Refunded
,
5
%
,
6/15/37
.........................................................
4,970,000
5,861,071
University
of
Oregon
,
Revenue,
2015A,
5%,
4/01/45
........................................
20,000,000
22,828,400
Revenue,
2016
A,
5%,
4/01/46
........................................
11,690,000
13,612,888
Revenue,
2020A,
5%,
4/01/50
........................................
20,000,000
25,334,200
a
Warm
Springs
Reservation
Confederated
Tribe
,
Revenue,
144A,
2019
B,
Refunding,
5%,
11/01/33
.........................
250,000
307,855
Revenue,
144A,
2019
B,
Refunding,
5%,
11/01/34
.........................
200,000
244,862
Revenue,
144A,
2019
B,
Refunding,
5%,
11/01/36
.........................
750,000
908,145
Revenue,
144A,
2019
B,
Refunding,
5%,
11/01/39
.........................
700,000
840,182
Washington
&
Clackamas
Counties
School
District
No.
23J
Tigard-Tualatin
,
GO,
2017,
5%,
6/15/36
.............................................
9,400,000
11,705,820
GO,
2017,
5%,
6/15/37
.............................................
6,000,000
7,451,160
Washington
&
Multnomah
Counties
School
District
No.
48J
Beaverton
,
GO,
2014B,
Pre-Refunded,
5%,
6/15/33
.................................
8,000,000
9,434,320
GO,
2014B,
Pre-Refunded,
5%,
6/15/34
.................................
11,000,000
12,972,190
GO,
2017D,
5%,
6/15/35
............................................
10,000,000
12,495,200
GO,
2017D,
5%,
6/15/36
............................................
10,000,000
12,453,000
Washington
Clackamas
&
Yamhill
Counties
School
District
No.
88J
,
GO,
2018
A,
Zero
Cpn
.,
6/15/38
.......................................
2,350,000
1,323,755
GO,
2018
A,
Zero
Cpn
.,
6/15/39
.......................................
3,275,000
1,761,819
Washington
County
School
District
No.
15
Forest
Grove
,
GO,
2012B,
Zero
Cpn
.,
6/15/29
.......................................
2,545,000
2,257,288
GO,
2012B,
Zero
Cpn
.,
6/15/30
.......................................
2,490,000
2,149,741
GO,
2012B,
Zero
Cpn
.,
6/15/31
.......................................
3,140,000
2,641,745
Yachats
Rural
Fire
Protection
District
,
GO
,
2017
,
AGMC
Insured
,
5
%
,
6/15/47
......
1,600,000
1,915,776
1,210,181,930
U.S.
Territories
0.9%
Puerto
Rico
0.9%
Children's
Trust
Fund
,
Revenue
,
2002
,
5.625
%
,
5/15/43
......................
6,000,000
6,030,480
b
Puerto
Rico
Electric
Power
Authority
,
Revenue
,
WW-RSA-1
,
5.25
%
,
7/01/33
.......
9,690,000
6,698,213
12,728,693
Total
U.S.
Territories
....................................................................
12,728,693
Total
Municipal
Bonds
(Cost
$1,133,207,787)
...................................
1,222,910,623
a
a
a
a
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Oregon
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
117
s
Short
Term
Investments
5.0%
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
5.0%
Oregon
5.0%
c
Oregon
State
Facilities
Authority
,
PeaceHealth
Obligated
Group,
Revenue,
2018
A,
Refunding,
LOC
US
Bank
NA,
Daily
VRDN
and
Put,
0.03%,
8/01/34
.................................
$
22,500,000
$
22,500,000
PeaceHealth
Obligated
Group,
Revenue,
2018
B,
Refunding,
LOC
TD
Bank
NA,
Daily
VRDN
and
Put,
0.02%,
8/01/34
.................................
32,900,000
32,900,000
c
State
of
Oregon
,
GO,
2020
J,
Refunding,
SPA
US
Bank
NA,
Daily
VRDN
and
Put,
0.03%,
6/01/39
..
4,565,000
4,565,000
GO,
2020
M,
SPA
US
Bank
NA,
Daily
VRDN
and
Put,
0.03%,
12/01/44
..........
6,035,000
6,035,000
66,000,000
Total
Municipal
Bonds
(Cost
$66,000,000)
......................................
66,000,000
Total
Short
Term
Investments
(Cost
$66,000,000
)
................................
66,000,000
a
Total
Investments
(Cost
$1,199,207,787)
97.9%
..................................
$1,288,910,623
Other
Assets,
less
Liabilities
2.1%
.............................................
26,888,566
Net
Assets
100.0%
...........................................................
$1,315,799,189
See
Abbreviations
on
page
155
.
a
Security
was
purchased
pursuant
to
Rule
144A
under
the
Securities
Act
of
1933
and
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.
At
August
31,
2020,
the
aggregate
value
of
these
securities
was
$9,549,143,
representing
0.7%
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
Pennsylvania
Tax-Free
Income
Fund
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
118
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
Year
Ended
February
28,
2019
b
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
..........................................
$10.11
$9.73
$9.74
Income
from
investment
operations
c
:
Net
investment
income
d
..................................................
0.13
0.29
0.16
Net
realized
and
unrealized
gains
(losses)
....................................
(0.17)
0.39
(0.01)
Total
from
investment
operations
.............................................
(0.04)
0.68
0.15
Less
distributions
from:
Net
investment
income
...................................................
(0.14)
(0.30)
(0.16)
Net
asset
value,
end
of
period
...............................................
$9.93
$10.11
$9.73
Total
return
e
............................................................
(0.33)%
7.14%
1.59%
Ratios
to
average
net
assets
f
Expenses
g
.............................................................
0.81%
0.82%
0.83%
Net
investment
income
....................................................
2.59%
2.98%
3.40%
Supplemental
data
Net
assets,
end
of
period
(000’s)
.............................................
$132,622
$105,032
$52,673
Portfolio
turnover
rate
.....................................................
12.68%
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.
Semiannual
Report
119
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
2019
2018
2017
2016
a
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$10.11
$9.73
$9.78
$10.12
$10.33
$10.51
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.14
0.31
0.34
0.35
0.39
0.40
Net
realized
and
unrealized
gains
(losses)
(0.18)
0.39
(0.04)
(0.32)
(0.22)
(0.18)
Total
from
investment
operations
........
(0.04)
0.70
0.30
0.03
0.17
0.22
Less
distributions
from:
Net
investment
income
..............
(0.14)
(0.32)
(0.35)
(0.37)
(0.38)
(0.40)
Net
asset
value,
end
of
period
..........
$9.93
$10.11
$9.73
$9.78
$10.12
$10.33
Total
return
d
.......................
(0.25)%
7.29%
3.17%
0.31%
1.62%
2.15%
Ratios
to
average
net
assets
e
Expenses
.........................
0.67%
f
0.67%
f
0.68%
f
0.66%
0.64%
0.64%
Net
investment
income
...............
2.79%
3.13%
3.55%
3.49%
3.73%
3.92%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$736,162
$772,506
$784,367
$860,737
$942,320
$965,479
Portfolio
turnover
rate
................
12.68%
13.61%
6.40%
13.33%
10.88%
4.73%
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,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Pennsylvania
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
120
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
2019
2018
2017
2016
a
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$10.24
$9.86
$9.91
$10.24
$10.45
$10.63
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.11
0.26
0.30
0.30
0.33
0.35
Net
realized
and
unrealized
gains
(losses)
(0.16)
0.39
(0.05)
(0.31)
(0.22)
(0.19)
Total
from
investment
operations
........
(0.05)
0.65
0.25
(0.01)
0.11
0.16
Less
distributions
from:
Net
investment
income
..............
(0.12)
(0.27)
(0.30)
(0.32)
(0.32)
(0.34)
Net
asset
value,
end
of
period
..........
$10.07
$10.24
$9.86
$9.91
$10.24
$10.45
Total
return
d
.......................
(0.52)%
6.64%
2.56%
(0.15)%
1.04%
1.56%
Ratios
to
average
net
assets
e
Expenses
.........................
1.21%
f
1.22%
f
1.23%
f
1.21%
1.19%
1.19%
Net
investment
income
...............
2.23%
2.58%
3.00%
2.94%
3.18%
3.37%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$121,938
$146,042
$173,240
$245,520
$283,260
$282,541
Portfolio
turnover
rate
................
12.68%
13.61%
6.40%
13.33%
10.88%
4.73%
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,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Pennsylvania
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
121
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
Year
Ended
February
28,
2018
b
2020
a
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
..............................
$10.12
$9.75
$9.80
$10.06
Income
from
investment
operations
c
:
Net
investment
income
d
......................................
0.14
0.32
0.36
0.21
Net
realized
and
unrealized
gains
(losses)
........................
(0.16)
0.38
(0.04)
(0.25)
Total
from
investment
operations
.................................
(0.02)
0.70
0.32
(0.04)
Less
distributions
from:
Net
investment
income
.......................................
(0.15)
(0.33)
(0.37)
(0.22)
Net
asset
value,
end
of
period
...................................
$9.95
$10.12
$9.75
$9.80
Total
return
e
................................................
(0.18)%
7.32%
3.30%
(0.43)%
Ratios
to
average
net
assets
f
Expenses
before
waiver
and
payments
by
affiliates
...................
0.54%
0.55%
0.57%
0.57%
Expenses
net
of
waiver
and
payments
by
affiliates
....................
0.53%
g
0.53%
g
0.54%
g
0.52%
Net
investment
income
........................................
2.89%
3.27%
3.69%
3.63%
Supplemental
data
Net
assets,
end
of
period
(000’s)
.................................
$3,263
$2,905
$2,282
$2,085
Portfolio
turnover
rate
.........................................
12.68%
13.61%
6.40%
13.33%
a
For
the
year
ended
February
29.
b
For
the
period
August
1,
2017
(effective
date)
to
February
28,
2018.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Pennsylvania
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
122
a
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
28,
2020
a
2019
2018
2017
2016
a
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$10.12
$9.75
$9.80
$10.13
$10.34
$10.52
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.14
0.32
d
0.36
0.36
0.40
0.41
Net
realized
and
unrealized
gains
(losses)
(0.16)
0.38
(0.05)
(0.31)
(0.22)
(0.18)
Total
from
investment
operations
........
(0.02)
0.70
0.31
0.05
0.18
0.23
Less
distributions
from:
Net
investment
income
..............
(0.15)
(0.33)
(0.36)
(0.38)
(0.39)
(0.41)
Net
asset
value,
end
of
period
..........
$9.95
$10.12
$9.75
$9.80
$10.13
$10.34
Total
return
d
.......................
(0.20)%
7.28%
3.27%
0.51%
1.72%
2.25%
Ratios
to
average
net
assets
e
Expenses
.........................
0.57%
f
0.57%
f
0.58%
f
0.56%
0.54%
0.54%
Net
investment
income
...............
2.88%
3.23%
3.65%
3.59%
3.83%
4.02%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$97,229
$98,190
$81,595
$79,153
$85,753
$52,807
Portfolio
turnover
rate
................
12.68%
13.61%
6.40%
13.33%
10.88%
4.73%
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
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited),
August
31,
2020
Franklin
Pennsylvania
Tax-Free
Income
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
123
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
94.2%
Pennsylvania
93.5%
Abington
School
District
,
GO
,
2017
A
,
4
%
,
10/01/42
.........................
$
12,000,000
$
13,592,520
Allegheny
County
Higher
Education
Building
Authority
,
Duquesne
University
of
the
Holy
Spirit,
Revenue,
2011A,
Pre-Refunded,
5.5%,
3/01/31
........................................................
3,000,000
3,079,140
Robert
Morris
University,
Revenue,
2016,
Refunding,
5%,
10/15/38
............
220,000
230,606
Robert
Morris
University,
Revenue,
2017,
5%,
10/15/37
.....................
1,000,000
1,057,570
Robert
Morris
University,
Revenue,
2017,
5%,
10/15/47
.....................
1,625,000
1,690,000
Allegheny
County
Sanitary
Authority
,
Revenue,
2010,
AGMC
Insured,
5%,
6/01/40
.............................
5,000,000
5,054,950
Revenue,
2018,
5%,
6/01/43
.........................................
9,785,000
11,911,183
Berks
County
Industrial
Development
Authority
,
Highlands
at
Wyomissing
Obligated
Group,
Revenue,
2017
A,
Refunding,
5%,
5/15/42
........................................................
1,000,000
1,062,460
Highlands
at
Wyomissing
Obligated
Group,
Revenue,
2017
A,
Refunding,
5%,
5/15/47
........................................................
600,000
633,852
Highlands
at
Wyomissing
Obligated
Group,
Revenue,
2017
C,
5%,
5/15/37
......
1,245,000
1,331,266
Highlands
at
Wyomissing
Obligated
Group,
Revenue,
2018,
Refunding,
5%,
5/15/38
1,030,000
1,100,895
Highlands
at
Wyomissing
Obligated
Group,
Revenue,
2018,
Refunding,
5%,
5/15/48
1,000,000
1,055,820
Berks
County
Municipal
Authority
(The)
,
Tower
Health
Obligated
Group
,
Revenue
,
2012
A
,
5
%
,
11/01/44
...................................................
10,000,000
10,206,800
a
Bradys
Run
Sanitary
Authority
,
Sewer
System
,
Revenue
,
2020
,
Refunding
,
AGMC
Insured
,
4
%
,
12/01/45
..............................................
1,580,000
1,784,736
Bucks
County
Industrial
Development
Authority
,
George
School,
Revenue,
2011,
5%,
9/15/41
.............................
5,000,000
5,230,050
St.
Luke's
Hospital
Obligated
Group,
Revenue,
2019,
4%,
8/15/44
.............
1,500,000
1,641,060
Bucks
County
Water
and
Sewer
Authority
,
Revenue,
2010A,
Pre-Refunded,
AGMC
Insured,
5%,
12/01/35
...............
2,500,000
2,530,075
Revenue,
2011,
Pre-Refunded,
AGMC
Insured,
5%,
12/01/41
.................
10,000,000
10,600,200
Butler
County
Hospital
Authority
,
Butler
Health
System
Obligated
Group
,
Revenue
,
2015A
,
Refunding
,
5
%
,
7/01/39
.......................................
1,625,000
1,770,015
Canon
Mcmillan
School
District
,
GO,
2019,
Refunding,
BAM
Insured,
4%,
6/01/44
..........................
6,075,000
6,759,895
GO,
2019,
Refunding,
BAM
Insured,
4%,
6/01/46
..........................
7,680,000
8,524,800
GO,
2019,
Refunding,
BAM
Insured,
4%,
6/01/48
..........................
5,250,000
5,819,415
GO,
2019,
Refunding,
BAM
Insured,
4%,
6/01/50
..........................
6,000,000
6,638,700
Centennial
School
District
Bucks
County
,
GO
,
2010A
,
Refunding
,
5
%
,
12/15/37
.....
5,855,000
5,936,502
Central
Bradford
Progress
Authority
,
Guthrie
Clinic
(The)
,
Revenue
,
2011
,
Pre-
Refunded
,
5.375
%
,
12/01/41
.........................................
3,000,000
3,188,220
Centre
County
Hospital
Authority
,
Mount
Nittany
Medical
Center
Obligated
Group,
Revenue,
2018
A,
Refunding,
5%,
11/15/42
.......................................................
1,215,000
1,447,065
Mount
Nittany
Medical
Center
Obligated
Group,
Revenue,
2018
A,
Refunding,
4%,
11/15/47
.......................................................
1,840,000
2,035,960
Chester
County
Health
and
Education
Facilities
Authority
,
Main
Line
Health
System,
Inc.
Obligated
Group
,
Revenue
,
2020A
,
4
%
,
9/01/50
.......................
4,500,000
5,149,395
Chester
County
Industrial
Development
Authority
,
University
Student
Housing
LLC,
Revenue,
2013A,
5%,
8/01/35
...............
500,000
512,180
University
Student
Housing
LLC,
Revenue,
2013A,
5%,
8/01/45
...............
1,500,000
1,521,585
City
of
Bethlehem
,
GO
,
2011B
,
Pre-Refunded
,
AGMC
Insured
,
6.5
%
,
12/01/32
.....
4,970,000
5,188,233
City
of
Philadelphia
,
GO,
2013A,
Pre-Refunded,
5.25%,
7/15/33
..............................
5,000,000
5,218,750
GO,
2019B,
5%,
2/01/36
............................................
3,300,000
4,168,923
GO,
2019B,
5%,
2/01/37
............................................
4,950,000
6,229,476
GO,
2019B,
5%,
2/01/38
............................................
2,500,000
3,136,200
GO,
2019B,
5%,
2/01/39
............................................
2,500,000
3,126,925
Airport,
Revenue,
2010A,
AGMC
Insured,
5%,
6/15/35
......................
5,000,000
5,031,700
Airport,
Revenue,
2010A,
AGMC
Insured,
5%,
6/15/40
......................
5,000,000
5,031,700
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Pennsylvania
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Semiannual
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)
Pennsylvania
(continued)
City
of
Philadelphia,
(continued)
Airport,
Revenue,
2017
B,
Refunding,
5%,
7/01/42
.........................
$
10,000,000
$
11,578,400
Water
&
Wastewater,
Revenue,
2011A,
5%,
1/01/41
........................
13,000,000
13,144,820
Water
&
Wastewater,
Revenue,
2013
A,
Pre-Refunded,
5.125%,
1/01/43
........
5,000,000
5,324,950
Water
&
Wastewater,
Revenue,
2015A,
5%,
7/01/40
........................
10,000,000
11,382,400
Water
&
Wastewater,
Revenue,
2015A,
5%,
7/01/45
........................
5,000,000
5,659,100
Water
&
Wastewater,
Revenue,
2017
A,
5%,
10/01/42
......................
10,000,000
12,221,100
Water
&
Wastewater,
Revenue,
2017
A,
5%,
10/01/47
......................
5,000,000
6,070,050
Water
&
Wastewater,
Revenue,
2018
A,
5%,
10/01/43
......................
5,000,000
6,188,550
Water
&
Wastewater,
Revenue,
2019
B,
5%,
11/01/49
......................
5,000,000
6,230,050
Water
&
Wastewater,
Revenue,
2020A,
Refunding,
5%,
11/01/45
..............
5,000,000
6,408,800
Water
&
Wastewater,
Revenue,
2020A,
Refunding,
5%,
11/01/50
..............
5,000,000
6,324,950
Commonwealth
Financing
Authority
,
Commonwealth
of
Pennsylvania
Department
of
Community
&
Economic
Development
,
Revenue
,
2015
A
,
5
%
,
6/01/34
..........
10,000,000
11,746,600
County
of
Allegheny
,
GO,
Pre-Refunded,
5.375%,
5/01/31
...................................
5,000,000
5,173,600
GO,
C-78,
4%,
11/01/45
.............................................
6,500,000
7,760,740
GO,
C-78,
4%,
11/01/49
.............................................
10,000,000
11,879,200
County
of
Chester
,
GO,
2020,
4%,
7/15/37
.............................................
1,000,000
1,168,290
GO,
2020,
4%,
7/15/39
.............................................
1,120,000
1,301,720
GO,
2020,
4%,
7/15/40
.............................................
1,330,000
1,542,175
a
County
of
York
,
GO,
2020
B,
4%,
6/01/37
............................................
940,000
1,132,784
GO,
2020
B,
4%,
6/01/38
............................................
860,000
1,032,800
Cumberland
County
Municipal
Authority
,
Dickinson
College
,
Revenue
,
2012
,
5
%
,
11/01/42
........................................................
4,500,000
4,837,275
Dallas
Area
Municipal
Authority
,
Misericordia
University
,
Revenue
,
2014
,
Refunding
,
5
%
,
5/01/37
......................................................
2,500,000
2,648,100
Dauphin
County
General
Authority
,
UPMC
Obligated
Group
,
Revenue
,
2012A
,
5
%
,
6/01/42
.........................................................
15,590,000
16,499,053
Delaware
County
Authority
,
Elwyn
Obligated
Group,
Revenue,
2017,
Refunding,
5%,
6/01/27
..............
3,040,000
3,238,178
Elwyn
Obligated
Group,
Revenue,
2017,
Refunding,
5%,
6/01/32
..............
1,620,000
1,693,418
Neumann
University,
Revenue,
2010,
5%,
10/01/25
........................
1,250,000
1,250,425
Neumann
University,
Revenue,
2010,
5.25%,
10/01/31
......................
1,250,000
1,250,213
Villanova
University,
Revenue,
2015,
4%,
8/01/45
..........................
2,120,000
2,276,498
Delaware
County
Regional
Water
Quality
Control
Authority
,
Revenue
,
2016
,
4
%
,
11/01/36
........................................................
2,005,000
2,246,161
Delaware
County
Vocational
&
Technical
School
Authority
,
Delaware
County
Intermediate
Unit
,
Revenue
,
2013
,
BAM
Insured
,
5
%
,
11/01/38
................
1,250,000
1,403,700
East
Hempfield
Township
Industrial
Development
Authority
,
Student
Services,
Inc.,
Revenue,
2013,
5%,
7/01/45
........................
3,250,000
3,281,362
Student
Services,
Inc.,
Revenue,
2015,
5%,
7/01/47
........................
3,750,000
3,805,950
Erie
City
Water
Authority
,
Revenue
,
2016
,
Refunding
,
5
%
,
12/01/43
..............
6,000,000
7,225,500
Falls
Township
Authority
,
Revenue
,
2011
,
Refunding
,
5
%
,
12/01/41
..............
2,210,000
2,328,832
Geisinger
Authority
,
Geisinger
Health
System
Obligated
Group,
Revenue,
2017
A-1,
Refunding,
5%,
2/15/45
........................................................
19,055,000
22,512,720
Geisinger
Health
System
Obligated
Group,
Revenue,
2020A,
Refunding,
4%,
4/01/50
13,000,000
14,858,740
General
Authority
of
Southcentral
Pennsylvania
,
WellSpan
Health
Obligated
Group,
Revenue,
2014A,
Refunding,
5%,
6/01/44
.....
11,955,000
13,196,407
York
College
of
Pennsylvania,
Revenue,
2011,
Pre-Refunded,
5.75%,
11/01/41
...
9,500,000
9,847,035
Governor
Mifflin
School
District
,
GO,
2020
A,
4%,
4/01/40
............................................
680,000
777,832
GO,
2020
A,
4%,
4/01/41
............................................
1,700,000
1,939,071
GO,
2020
A,
4%,
4/01/44
............................................
1,725,000
1,955,356
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Pennsylvania
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
125
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Pennsylvania
(continued)
Governor
Mifflin
School
District,
(continued)
GO,
2020
A,
4%,
4/01/45
............................................
$
1,750,000
$
1,980,388
a
Greater
Johnstown
Water
Authority
,
Sewer,
Revenue,
2020,
AGMC
Insured,
4%,
8/15/38
.......................
1,740,000
1,994,492
Sewer,
Revenue,
2020,
AGMC
Insured,
4%,
8/15/41
.......................
2,650,000
3,006,823
Sewer,
Revenue,
2020,
AGMC
Insured,
4%,
8/15/44
.......................
3,590,000
4,030,493
Sewer,
Revenue,
2020,
AGMC
Insured,
4%,
8/15/48
.......................
4,210,000
4,694,024
Hospitals
&
Higher
Education
Facilities
Authority
of
Philadelphia
(The)
,
Children's
Hospital
of
Philadelphia
Obligated
Group
,
Revenue
,
2011C
,
5
%
,
7/01/41
........
5,000,000
5,143,400
Lancaster
County
Hospital
Authority
,
University
of
Pennsylvania
Health
System
Obligated
Group
(The)
,
Revenue
,
2016B
,
Refunding
,
5
%
,
8/15/46
.............
4,165,000
4,896,624
Lancaster
Industrial
Development
Authority
,
Willow
Valley
Communities
Obligated
Group,
Revenue,
2019,
5%,
12/01/44
......
1,850,000
2,099,139
Willow
Valley
Communities
Obligated
Group,
Revenue,
2019,
5%,
12/01/49
......
2,300,000
2,590,352
Latrobe
Industrial
Development
Authority
,
St.
Vincent
College
Corp.
,
Revenue
,
2013
,
5
%
,
5/01/43
......................................................
4,120,000
4,267,208
Lehigh
County
Authority
,
Revenue
,
2013A
,
5
%
,
12/01/43
......................
5,240,000
5,898,720
Lycoming
County
Authority
,
Lycoming
College,
Revenue,
2013
MM1,
5.25%,
11/01/38
...................
1,400,000
1,598,072
Lycoming
College,
Revenue,
2013
MM1,
5.25%,
11/01/43
...................
1,495,000
1,702,969
Mckeesport
Area
School
District
,
GO
,
2020
B
,
AGMC
Insured
,
4
%
,
10/01/40
.......
1,500,000
1,740,960
Monroe
County
Hospital
Authority
,
Lehigh
Valley
Health
Network
Obligated
Group
,
Revenue
,
2012A
,
Pre-Refunded
,
5
%
,
1/01/41
.............................
4,000,000
4,245,000
Montgomery
County
Higher
Education
and
Health
Authority
,
Thomas
Jefferson
University
Obligated
Group,
Revenue,
2018
A,
Refunding,
5%,
9/01/43
........................................................
3,000,000
3,574,080
Thomas
Jefferson
University
Obligated
Group,
Revenue,
2019,
Refunding,
4%,
9/01/44
........................................................
10,000,000
11,006,800
Montgomery
County
Industrial
Development
Authority
,
ACTS
Retirement-Life
Communities,
Inc.
Obligated
Group,
Revenue,
2020
C,
4%,
11/15/43
.......................................................
600,000
658,890
ACTS
Retirement-Life
Communities,
Inc.
Obligated
Group,
Revenue,
2020
C,
5%,
11/15/45
.......................................................
1,985,000
2,351,252
Main
Line
Health
System,
Inc.
Obligated
Group,
Revenue,
2012A,
Pre-Refunded,
5%,
10/01/41
...................................................
9,600,000
10,329,984
Meadowood
Corp.
Obligated
Group
(The),
Revenue,
2018A,
Refunding,
5%,
12/01/38
.......................................................
2,500,000
2,691,100
Waverly
Heights
Ltd.
Obligated
Group,
Revenue,
2019,
Refunding,
5%,
12/01/49
..
2,000,000
2,210,960
Northampton
County
General
Purpose
Authority
,
St.
Luke's
Hospital
Obligated
Group,
Revenue,
2016
A,
Refunding,
5%,
8/15/46
...
10,000,000
11,393,600
St.
Luke's
Hospital
Obligated
Group,
Revenue,
2018A,
Refunding,
5%,
8/15/43
...
2,285,000
2,712,980
St.
Luke's
Hospital
Obligated
Group,
Revenue,
2018A,
Refunding,
5%,
8/15/48
...
2,500,000
2,950,250
Northeastern
Pennsylvania
Hospital
and
Education
Authority
,
King's
College,
Revenue,
2019,
5%,
5/01/44
.............................
1,000,000
1,082,960
Wilkes
University,
Revenue,
2012A,
5.25%,
3/01/42
........................
2,400,000
2,424,912
Pennsylvania
Economic
Development
Financing
Authority
,
Aqua
Pennsylvania,
Inc.,
Revenue,
2010B,
5%,
12/01/43
....................
25,000,000
25,164,250
UPMC
Obligated
Group,
Revenue,
2014A,
5%,
2/01/45
.....................
5,000,000
5,554,250
UPMC
Obligated
Group,
Revenue,
2017
A,
Refunding,
4%,
11/15/42
...........
5,000,000
5,569,700
UPMC
Obligated
Group,
Revenue,
2020
A,
4%,
4/15/45
.....................
8,835,000
9,999,983
Pennsylvania
Higher
Educational
Facilities
Authority
,
Bryn
Mawr
College,
Revenue,
2014,
Refunding,
5%,
12/01/44
................
6,365,000
7,203,780
Bryn
Mawr
College,
Revenue,
2019,
Refunding,
4%,
12/01/44
................
1,000,000
1,167,150
Bryn
Mawr
College,
Revenue,
2019,
Refunding,
4%,
12/01/48
................
2,500,000
2,904,750
Drexel
University,
Revenue,
2020
A,
Refunding,
AGMC
Insured,
4%,
5/01/50
.....
5,000,000
5,678,300
Foundation
for
Indiana
University
of
Pennsylvania
(The),
Revenue,
2012A,
Pre-
Refunded,
5%,
7/01/41
............................................
1,250,000
1,354,038
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Pennsylvania
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Semiannual
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)
Pennsylvania
(continued)
Pennsylvania
Higher
Educational
Facilities
Authority,
(continued)
Gwynedd
Mercy
University,
Revenue,
2012-KK1,
5.375%,
5/01/42
.............
$
1,800,000
$
1,858,734
Shippensburg
University
of
Pennsylvania,
Revenue,
2011,
Pre-Refunded,
6.25%,
10/01/43
.......................................................
7,000,000
7,437,920
Shippensburg
University
Student
Services,
Inc.,
Revenue,
2012,
Pre-Refunded,
5%,
10/01/35
.......................................................
1,400,000
1,537,914
Shippensburg
University
Student
Services,
Inc.,
Revenue,
2012,
Pre-Refunded,
5%,
10/01/44
.......................................................
2,000,000
2,197,020
St.
Francis
University,
Revenue,
2011-JJ2,
Pre-Refunded,
6.25%,
11/01/41
......
3,840,000
4,108,070
St.
Joseph's
University,
Revenue,
2010A,
5%,
11/01/40
.....................
15,000,000
15,116,100
Temple
University-of
The
Commonwealth
System
of
Higher
Education,
Revenue,
First
Series,
2012,
Pre-Refunded,
5%,
4/01/42
..........................
15,000,000
16,128,150
Thomas
Jefferson
University
Obligated
Group,
Revenue,
2015A,
Refunding,
5%,
9/01/45
........................................................
7,465,000
8,454,560
Trustees
of
the
University
of
Pennsylvania
(The),
Revenue,
2011A,
Pre-Refunded,
5%,
9/01/41
....................................................
25,000,000
25,597,250
Trustees
of
the
University
of
Pennsylvania
(The),
Revenue,
2017A,
5%,
8/15/36
...
2,750,000
3,335,805
Trustees
of
the
University
of
Pennsylvania
(The),
Revenue,
2017A,
5%,
8/15/46
...
14,000,000
16,663,080
Trustees
of
the
University
of
Pennsylvania
(The),
Revenue,
2018A,
4%,
2/15/43
...
12,575,000
14,156,558
Trustees
of
the
University
of
Pennsylvania
(The),
Revenue,
2018A,
5%,
2/15/48
...
5,000,000
6,066,750
University
of
Pennsylvania
Health
System
Obligated
Group
(The),
Revenue,
2011A,
Pre-Refunded,
5.75%,
8/15/41
......................................
3,950,000
4,157,770
University
of
Pennsylvania
Health
System
Obligated
Group
(The),
Revenue,
2015,
Refunding,
5%,
8/15/40
............................................
6,475,000
7,505,302
University
of
Pennsylvania
Health
System
Obligated
Group
(The),
Revenue,
2017
A,
4%,
8/15/42
....................................................
5,000,000
5,633,000
University
of
Pennsylvania
Health
System
Obligated
Group
(The),
Revenue,
2017
A,
5%,
8/15/42
....................................................
9,000,000
10,862,550
University
of
Pennsylvania
Health
System
Obligated
Group
(The),
Revenue,
2019,
4%,
8/15/44
....................................................
6,000,000
6,905,280
University
of
Pennsylvania
Health
System
Obligated
Group
(The),
Revenue,
2019,
4%,
8/15/49
....................................................
3,000,000
3,420,960
University
of
Sciences,
Revenue,
2012,
5%,
11/01/42
.......................
5,000,000
5,110,750
University
Properties,
Inc.,
Revenue,
2016A,
Refunding,
5%,
7/01/35
...........
1,000,000
1,021,730
Pennsylvania
Housing
Finance
Agency
,
Revenue,
2019-129,
3.4%,
10/01/49
...................................
6,000,000
6,338,040
Revenue,
2019-130A,
3%,
10/01/46
....................................
5,000,000
5,230,450
Revenue,
2020-132
A,
2.55%,
10/01/41
.................................
11,280,000
11,371,594
Pennsylvania
State
University
(The)
,
Revenue,
2015A,
Refunding,
5%,
9/01/40
...............................
10,490,000
12,338,128
Revenue,
2016A,
Refunding,
5%,
9/01/41
...............................
10,000,000
11,938,900
Revenue,
2017A,
5%,
9/01/42
........................................
15,750,000
19,247,603
Revenue,
2017A,
5%,
9/01/47
........................................
10,000,000
12,139,200
Revenue,
2018,
5%,
9/01/48
.........................................
5,955,000
7,393,430
Revenue,
2019
A,
5%,
9/01/45
........................................
5,475,000
6,971,318
Revenue,
2019
A,
5%,
9/01/46
........................................
5,780,000
7,349,154
Revenue,
2019
A,
5%,
9/01/49
........................................
6,720,000
8,517,533
Revenue,
2020A,
4%,
9/01/50
........................................
5,000,000
5,790,650
Pennsylvania
Turnpike
Commission
,
Revenue,
2011A,
Pre-Refunded,
5.5%,
12/01/41
..........................
5,000,000
5,066,350
Revenue,
2013
C,
Pre-Refunded,
5%,
12/01/43
...........................
7,595,000
8,769,035
Revenue,
2013
C,
5%,
12/01/43
.......................................
2,405,000
2,625,298
Revenue,
2018A,
5%,
12/01/48
.......................................
18,600,000
22,782,396
Philadelphia
Authority
for
Industrial
Development
,
Beech
International
LLC,
Revenue,
2010A,
5.625%,
6/15/42
.................
4,000,000
4,005,160
Children's
Hospital
of
Philadelphia
Obligated
Group,
Revenue,
2014
A,
5%,
7/01/42
5,000,000
5,606,550
MaST
Community
Charter
School
II,
Revenue,
2020
A,
5%,
8/01/30
............
200,000
239,824
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Pennsylvania
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
127
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Pennsylvania
(continued)
Philadelphia
Authority
for
Industrial
Development,
(continued)
MaST
Community
Charter
School
II,
Revenue,
2020
A,
5%,
8/01/40
............
$
300,000
$
347,214
MaST
Community
Charter
School
II,
Revenue,
2020
A,
5%,
8/01/50
............
2,515,000
2,885,535
Temple
University-of
The
Commonwealth
System
of
Higher
Education,
Revenue,
First
Series,
2015,
Refunding,
5%,
4/01/40
.............................
5,000,000
5,686,700
Thomas
Jefferson
University
Obligated
Group,
Revenue,
2017
A,
Refunding,
5%,
9/01/47
........................................................
11,150,000
12,870,222
Philadelphia
Gas
Works
Co.
,
Revenue,
14TH,
Refunding,
5%,
10/01/32
...............................
1,000,000
1,207,090
Revenue,
15TH,
Refunding,
5%,
8/01/42
................................
5,000,000
5,873,500
Revenue,
15TH,
Refunding,
5%,
8/01/47
................................
6,000,000
6,869,520
Revenue,
NINTH,
5.25%,
8/01/40
.....................................
3,490,000
3,503,681
Philadelphia
Housing
Authority
,
Revenue
,
2002A
,
AGMC
Insured
,
5
%
,
12/01/21
....
5,000,000
5,019,550
Pocono
Mountains
Industrial
Park
Authority
,
St.
Luke's
Hospital
Obligated
Group
,
Revenue
,
2015A
,
5
%
,
8/15/40
........................................
5,000,000
5,570,100
Scranton-Lackawanna
Health
and
Welfare
Authority
,
University
of
Scranton
,
Revenue
,
2016
,
Refunding
,
5
%
,
11/01/37
.......................................
4,000,000
4,643,000
State
College
Area
School
District
,
GO,
2015,
5%,
3/15/40
.............................................
16,400,000
19,280,660
GO,
2018,
5%,
5/15/37
.............................................
1,075,000
1,364,272
GO,
2018,
5%,
5/15/44
.............................................
3,500,000
4,367,265
State
Public
School
Building
Authority
,
School
District
of
Philadelphia
(The),
Revenue,
2016
A,
Refunding,
AGMC
Insured,
5%,
6/01/32
....................................................
7,095,000
8,577,075
School
District
of
Philadelphia
(The),
Revenue,
2016
A,
Refunding,
AGMC
Insured,
5%,
6/01/33
....................................................
3,000,000
3,610,770
Swarthmore
Borough
Authority
,
Swarthmore
College
,
Revenue
,
2013
,
5
%
,
9/15/43
..
1,000,000
1,128,780
Township
of
Lower
Paxton
,
GO
,
2020
A
,
4
%
,
4/01/50
.........................
1,100,000
1,261,942
Township
of
Moon
,
GO
,
2020
A
,
4
%
,
11/15/50
..............................
3,270,000
3,727,277
Union
County
Higher
Educational
Facilities
Financing
Authority
,
Bucknell
University
,
Revenue
,
2012A
,
Pre-Refunded
,
5
%
,
4/01/42
.............................
5,000,000
5,376,050
Upper
Merion
Area
School
District
,
GO
,
2020
,
4
%
,
9/01/49
....................
1,265,000
1,455,079
a
West
Shore
School
District
,
GO
,
2020
,
4
%
,
11/15/48
.........................
3,845,000
4,460,277
1,020,525,785
U.S.
Territories
0.7%
Puerto
Rico
0.7%
b
Puerto
Rico
Electric
Power
Authority
,
Revenue
,
XX-RSA-1
,
5.25
%
,
7/01/40
........
10,000,000
6,912,500
Total
Municipal
Bonds
(Cost
$977,152,942)
.....................................
1,027,438,285
a
a
a
a
Franklin
Tax-Free
Trust
Statement
of
Investments
(unaudited)
Franklin
Pennsylvania
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
128
s
Short
Term
Investments
2.7%
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
2.7%
Pennsylvania
2.7%
c
Allegheny
County
Higher
Education
Building
Authority
,
Carnegie
Mellon
University
,
Revenue
,
2008
A
,
Refunding
,
SPA
Bank
of
New
York
Mellon
(The)
,
Daily
VRDN
and
Put
,
0.02
%
,
12/01/37
...............................................
$
29,175,000
$
29,175,000
c
Hospitals
&
Higher
Education
Facilities
Authority
of
Philadelphia
(The)
,
Children's
Hospital
of
Philadelphia
Obligated
Group
,
Revenue
,
2011
B
,
SPA
Bank
of
America
NA
,
Daily
VRDN
and
Put
,
0.01
%
,
7/01/41
................................
700,000
700,000
29,875,000
Total
Municipal
Bonds
(Cost
$29,875,000)
......................................
29,875,000
Total
Short
Term
Investments
(Cost
$29,875,000
)
................................
29,875,000
a
Total
Investments
(Cost
$1,007,027,942)
96.9%
..................................
$1,057,313,285
Other
Assets,
less
Liabilities
3.1%
.............................................
33,900,407
Net
Assets
100.0%
...........................................................
$1,091,213,692
See
Abbreviations
on
page
155
.
a
Security
purchased
on
a
when-issued
basis.
See
Note
1(b).
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
August
31,
2020
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
129
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
................
$905,944,913
$654,330,374
$192,123,959
$885,617,409
Value
-
Unaffiliated
issuers
...............
$975,856,821
$706,737,917
$203,855,362
$962,140,495
Cash
.................................
27,773
818,091
216,737
1,725,268
Receivables:
Investment
securities
sold
................
—
14,296,240
—
—
Capital
shares
sold
.....................
871,797
624,020
184,502
926,014
Interest
..............................
7,855,106
8,492,848
1,739,931
12,260,096
Other
assets
...........................
574
425
119
546
Total
assets
.......................
984,612,071
730,969,541
205,996,651
977,052,419
Liabilities:
Payables:
Investment
securities
purchased
...........
—
—
—
14,164,080
Capital
shares
redeemed
................
1,628,240
764,369
332,422
891,339
Management
fees
......................
415,632
313,677
102,460
406,842
Distribution
fees
.......................
122,208
89,852
27,060
116,628
Transfer
agent
fees
.....................
124,019
105,719
31,306
142,075
Distributions
to
shareholders
..............
262,253
91,235
83,768
245,466
Accrued
expenses
and
other
liabilities
........
56,034
60,544
33,900
69,724
Total
liabilities
......................
2,608,386
1,425,396
610,916
16,036,154
Net
assets,
at
value
..............
$982,003,685
$729,544,145
$205,385,735
$961,016,265
Net
assets
consist
of:
Paid-in
capital
..........................
$974,552,416
$727,604,677
$229,717,261
$953,291,978
Total
distributable
earnings
(losses)
..........
7,451,269
1,939,468
(24,331,526)
7,724,287
Net
assets,
at
value
..............
$982,003,685
$729,544,145
$205,385,735
$961,016,265
Franklin
Tax-Free
Trust
Financial
Statements
Statements
of
Assets
and
Liabilities
(continued)
August
31,
2020
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
130
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
....................
$147,343,753
$99,063,462
$26,096,919
$89,499,270
Shares
outstanding
.....................
13,397,365
8,412,220
2,547,331
7,499,842
Net
asset
value
per
share
a
...............
$11.00
$11.78
$10.24
$11.93
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
96
.25
%
,
96
.25
%
,
96
.25
%
and
96
.25
%
,
respectively)
...................
$11.43
$12.24
$10.64
$12.39
Class
A1:
Net
assets,
at
value
....................
$605,590,548
$435,459,838
$142,082,157
$712,069,209
Shares
outstanding
.....................
55,161,138
36,998,253
13,884,470
59,744,184
Net
asset
value
per
share
a
...............
$10.98
$11.77
$10.23
$11.92
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
96
.25
%
,
96
.25
%
,
96
.25
%
and
96
.25
%
,
respectively)
...................
$11.41
$12.23
$10.63
$12.38
Class
C:
Net
assets,
at
value
....................
$71,198,836
$56,975,788
$16,945,944
$66,204,301
Shares
outstanding
.....................
6,374,111
4,781,174
1,642,255
5,465,110
Net
asset
value
and
maximum
offering
price
per
share
a
...............................
$11.17
$11.92
$10.32
$12.11
Class
R6:
Net
assets,
at
value
....................
$18,750,285
$15,189,561
$326,393
$4,631,680
Shares
outstanding
.....................
1,702,473
1,289,528
31,893
386,993
Net
asset
value
and
maximum
offering
price
per
share
...............................
$11.01
$11.78
$10.23
$11.97
Advisor
Class:
Net
assets,
at
value
....................
$139,120,263
$122,855,496
$19,934,322
$88,611,805
Shares
outstanding
.....................
12,631,752
10,437,434
1,949,288
7,410,078
Net
asset
value
and
maximum
offering
price
per
share
...............................
$11.01
$11.77
$10.23
$11.96
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)
August
31,
2020
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
131
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
................
$997,318,902
$1,492,881,188
$1,199,207,787
$1,007,027,942
Value
-
Unaffiliated
issuers
...............
$1,069,926,224
$1,615,638,387
$1,288,910,623
$1,057,313,285
Cash
.................................
886,355
12,438,993
16,271,287
11,441,107
Receivables:
Investment
securities
sold
................
—
7,570,000
—
34,980,000
Capital
shares
sold
.....................
898,877
2,768,774
889,645
642,307
Interest
..............................
7,036,887
15,556,254
12,198,320
11,697,380
Other
assets
...........................
591
903
741
635
Total
assets
.......................
1,078,748,934
1,653,973,311
1,318,270,616
1,116,074,714
Liabilities:
Payables:
Investment
securities
purchased
...........
13,992,671
13,607,197
—
22,202,193
Capital
shares
redeemed
................
1,011,257
1,483,418
1,343,164
1,555,195
Management
fees
......................
447,239
676,099
548,384
460,399
Distribution
fees
.......................
143,611
227,748
172,812
159,294
Transfer
agent
fees
.....................
202,138
233,749
161,116
150,762
Distributions
to
shareholders
..............
151,618
245,542
156,046
237,711
Accrued
expenses
and
other
liabilities
........
66,536
101,446
89,905
95,468
Total
liabilities
......................
16,015,070
16,575,199
2,471,427
24,861,022
Net
assets,
at
value
..............
$1,062,733,864
$1,637,398,112
$1,315,799,189
$1,091,213,692
Net
assets
consist
of:
Paid-in
capital
..........................
$1,000,222,803
$1,549,119,042
$1,303,772,529
$1,133,175,417
Total
distributable
earnings
(losses)
..........
62,511,061
88,279,070
12,026,660
(41,961,725)
Net
assets,
at
value
..............
$1,062,733,864
$1,637,398,112
$1,315,799,189
$1,091,213,692
Franklin
Tax-Free
Trust
Financial
Statements
Statements
of
Assets
and
Liabilities
(continued)
August
31,
2020
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
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
Class
A:
Net
assets,
at
value
....................
$129,952,719
$210,408,475
$191,620,480
$132,621,559
Shares
outstanding
.....................
10,200,612
16,041,872
16,172,718
13,349,598
Net
asset
value
per
share
a
...............
$12.74
$13.12
$11.85
$9.93
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
96
.25
%
,
96
.25
%
,
96
.25
%
and
96
.25
%
,
respectively)
...................
$13.24
$13.63
$12.31
$10.32
Class
A1:
Net
assets,
at
value
....................
$592,898,712
$969,162,191
$838,023,737
$736,162,290
Shares
outstanding
.....................
46,547,069
73,933,635
70,789,237
74,119,915
Net
asset
value
per
share
a
...............
$12.74
$13.11
$11.84
$9.93
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
96
.25
%
,
96
.25
%
,
96
.25
%
and
96
.25
%
,
respectively)
...................
$13.24
$13.62
$12.30
$10.32
Class
C:
Net
assets,
at
value
....................
$117,732,718
$181,172,421
$109,186,613
$121,937,858
Shares
outstanding
.....................
9,137,134
13,630,157
9,076,860
12,114,302
Net
asset
value
and
maximum
offering
price
per
share
a
...............................
$12.89
$13.29
$12.03
$10.07
Class
R6:
Net
assets,
at
value
....................
$10,481,953
$12,981,333
$20,550,847
$3,263,428
Shares
outstanding
.....................
821,518
988,944
1,734,618
328,084
Net
asset
value
and
maximum
offering
price
per
share
...............................
$12.76
$13.13
$11.85
$9.95
Advisor
Class:
Net
assets,
at
value
....................
$211,667,762
$263,673,692
$156,417,512
$97,228,557
Shares
outstanding
.....................
16,597,208
20,091,624
13,194,100
9,775,282
Net
asset
value
and
maximum
offering
price
per
share
...............................
$12.75
$13.12
$11.86
$9.95
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
six
months
ended
August
31,
2020
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
133
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
.....................
$16,503,720
$12,050,165
$3,749,882
$15,348,342
Expenses:
Management
fees
(Note
3
a
)
................
2,320,760
1,747,528
576,046
2,280,690
Distribution
fees:
(Note
3c
)
Class
A
.............................
160,456
111,171
28,352
97,593
Class
A1
............................
312,295
219,683
71,815
356,786
Class
C
.............................
243,664
201,318
60,877
236,839
Transfer
agent
fees:
(Note
3e
)
Class
A
.............................
40,172
30,031
8,163
27,340
Class
A1
............................
194,988
148,198
51,638
249,333
Class
C
.............................
23,398
20,875
6,730
25,436
Class
R6
............................
3,471
2,904
125
1,023
Advisor
Class
.........................
40,751
38,780
6,951
29,313
Custodian
fees
(Note
4
)
...................
3,737
2,691
751
3,021
Reports
to
shareholders
...................
17,907
16,265
7,956
23,825
Registration
and
filing
fees
.................
24,874
15,990
10,892
27,834
Professional
fees
........................
28,380
32,170
25,332
28,202
Trustees'
fees
and
expenses
...............
2,922
2,180
674
2,869
Other
.................................
30,288
25,288
9,871
39,112
Total
expenses
......................
3,448,063
2,615,072
866,173
3,429,216
Expense
reductions
(Note
4
)
............
(6,387)
(4,734)
(1,423)
(6,149)
Expenses
waived/paid
by
affiliates
(Note
3e
and
3f)
...........................
(889)
(737)
(82)
(393)
Net
expenses
......................
3,440,787
2,609,601
864,668
3,422,674
Net
investment
income
.............
13,062,933
9,440,564
2,885,214
11,925,668
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
Unaffiliated
issuers
...................
(3,206,474)
(3,818,233)
(759,370)
(51)
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
...................
(20,847,270)
(8,972,301)
(2,344,901)
(8,413,400)
Net
realized
and
unrealized
gain
(loss)
.........
(24,053,744)
(12,790,534)
(3,104,271)
(8,413,451)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
...............................
$(10,990,811)
$(3,349,970)
$(219,057)
$3,512,217
Franklin
Tax-Free
Trust
Financial
Statements
Statements
of
Operations
(continued)
for
the
six
months
ended
August
31,
2020
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
134
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
.....................
$15,142,860
$26,025,979
$20,184,708
$18,849,258
Expenses:
Management
fees
(Note
3
a
)
................
2,481,558
3,755,356
3,044,581
2,591,652
Distribution
fees:
(Note
3c
)
Class
A
.............................
137,564
222,089
212,107
141,499
Class
A1
............................
295,562
485,104
419,513
372,710
Class
C
.............................
416,585
627,299
382,277
438,695
Transfer
agent
fees:
(Note
3e
)
Class
A
.............................
45,433
62,422
51,003
39,360
Class
A1
............................
243,612
340,302
251,738
258,608
Class
C
.............................
52,763
67,654
35,253
46,794
Class
R6
............................
2,320
2,494
3,625
682
Advisor
Class
.........................
83,016
88,089
43,290
33,321
Custodian
fees
(Note
4
)
...................
3,322
5,852
4,633
4,076
Reports
to
shareholders
...................
28,196
38,078
24,854
29,571
Registration
and
filing
fees
.................
25,835
28,670
13,429
14,610
Professional
fees
........................
29,089
30,135
34,412
40,437
Trustees'
fees
and
expenses
...............
3,032
4,668
3,756
3,433
Other
.................................
35,648
42,008
37,278
33,948
Total
expenses
......................
3,883,535
5,800,220
4,561,749
4,049,396
Expense
reductions
(Note
4
)
............
(6,611)
(10,091)
(8,150)
(7,273)
Expenses
waived/paid
by
affiliates
(Note
3e
and
3f)
...........................
(858)
(767)
(657)
(254)
Net
expenses
......................
3,876,066
5,789,362
4,552,942
4,041,869
Net
investment
income
.............
11,266,794
20,236,617
15,631,766
14,807,389
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
Unaffiliated
issuers
...................
68,551
31,606
(5,234,819)
(573,619)
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
...................
(7,540,910)
(11,363,107)
(13,165,895)
(18,804,320)
Net
realized
and
unrealized
gain
(loss)
.........
(7,472,359)
(11,331,501)
(18,400,714)
(19,377,939)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
...............................
$3,794,435
$8,905,116
$(2,768,948)
$(4,570,550)
Franklin
Tax-Free
Trust
Financial
Statements
Statements
of
Changes
in
Net
Assets
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
135
Franklin
Arizona
Tax-Free
Income
Fund
Franklin
Colorado
Tax-Free
Income
Fund
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
29,
2020
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
29,
2020
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
............
$13,062,933
$26,975,814
$9,440,564
$20,117,253
Net
realized
gain
(loss)
............
(3,206,474)
1,141,751
(3,818,233)
(1,814,943)
Net
change
in
unrealized
appreciation
(depreciation)
.................
(20,847,270)
57,289,938
(8,972,301)
42,068,102
Net
increase
(decrease)
in
net
assets
resulting
from
operations
.
(10,990,811)
85,407,503
(3,349,970)
60,370,412
Distributions
to
shareholders:
Class
A
........................
(1,643,849)
(2,332,745)
(1,095,052)
(1,629,360)
Class
A1
.......................
(8,522,840)
(19,798,266)
(5,758,597)
(14,061,542)
Class
C
........................
(803,339)
(1,873,636)
(633,964)
(1,626,856)
Class
R6
.......................
(244,757)
(454,208)
(198,611)
(338,651)
Advisor
Class
...................
(1,834,536)
(3,212,942)
(1,560,356)
(3,239,638)
Total
distributions
to
shareholders
.....
(13,049,321)
(27,671,797)
(9,246,580)
(20,896,047)
Capital
share
transactions:
(Note
2
)
Class
A
........................
18,954,607
82,123,507
12,856,729
49,176,416
Class
A1
.......................
(50,590,830)
(29,484,449)
(33,802,429)
(11,721,010)
Class
C
........................
(7,520,113)
(1,420,659)
(8,259,397)
(6,420,157)
Class
R6
.......................
2,154,682
3,516,275
1,112,985
5,282,633
Advisor
Class
...................
16,544,312
28,347,443
8,844,292
17,547,065
Total
capital
share
transactions
.......
(20,457,342)
83,082,117
(19,247,820)
53,864,947
Net
increase
(decrease)
in
net
assets
.....................
(44,497,474)
140,817,823
(31,844,370)
93,339,312
Net
assets:
Beginning
of
period
................
1,026,501,159
885,683,336
761,388,515
668,049,203
End
of
period
.....................
$982,003,685
$1,026,501,159
$729,544,145
$761,388,515
Franklin
Tax-Free
Trust
Financial
Statements
Statements
of
Changes
in
Net
Assets
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
136
Franklin
Connecticut
Tax-Free
Income
Fund
Franklin
Michigan
Tax-Free
Income
Fund
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
29,
2020
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
29,
2020
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
............
$2,885,214
$6,316,109
$11,925,668
$24,393,708
Net
realized
gain
(loss)
............
(759,370)
251,416
(51)
989,794
Net
change
in
unrealized
appreciation
(depreciation)
.................
(2,344,901)
7,147,022
(8,413,400)
57,391,323
Net
increase
(decrease)
in
net
assets
resulting
from
operations
.
(219,057)
13,714,547
3,512,217
82,774,825
Distributions
to
shareholders:
Class
A
........................
(303,066)
(524,971)
(936,348)
(1,330,288)
Class
A1
.......................
(2,033,412)
(4,928,971)
(9,109,374)
(20,296,801)
Class
C
........................
(212,082)
(618,568)
(718,940)
(1,732,856)
Class
R6
.......................
(4,256)
(8,134)
(56,345)
(102,923)
Advisor
Class
...................
(283,339)
(648,491)
(1,108,182)
(2,007,966)
Total
distributions
to
shareholders
.....
(2,836,155)
(6,729,135)
(11,929,189)
(25,470,834)
Capital
share
transactions:
(Note
2
)
Class
A
........................
4,721,567
7,305,774
15,430,882
37,749,449
Class
A1
.......................
(5,836,297)
(15,075,347)
(13,217,555)
(40,857,366)
Class
C
........................
(3,164,843)
(6,401,568)
(11,356,549)
(6,528,627)
Class
R6
.......................
31,683
144,007
513,777
889,801
Advisor
Class
...................
194,871
48,683
9,563,678
12,204,055
Total
capital
share
transactions
.......
(4,053,019)
(13,978,451)
934,233
3,457,312
Net
increase
(decrease)
in
net
assets
.....................
(7,108,231)
(6,993,039)
(7,482,739)
60,761,303
Net
assets:
Beginning
of
period
................
212,493,966
219,487,005
968,499,004
907,737,701
End
of
period
.....................
$205,385,735
$212,493,966
$961,016,265
$968,499,004
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.
Semiannual
Report
137
Franklin
Minnesota
Tax-Free
Income
Fund
Franklin
Ohio
Tax-Free
Income
Fund
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
29,
2020
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
29,
2020
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
............
$11,266,794
$24,724,905
$20,236,617
$42,264,066
Net
realized
gain
(loss)
............
68,551
540,440
31,606
611,043
Net
change
in
unrealized
appreciation
(depreciation)
.................
(7,540,910)
57,624,768
(11,363,107)
84,496,281
Net
increase
(decrease)
in
net
assets
resulting
from
operations
.
3,794,435
82,890,113
8,905,116
127,371,390
Distributions
to
shareholders:
Class
A
........................
(1,135,966)
(1,538,044)
(2,204,292)
(2,999,229)
Class
A1
.......................
(6,573,437)
(15,480,525)
(12,827,370)
(28,487,537)
Class
C
........................
(1,061,045)
(2,941,646)
(1,994,961)
(4,836,261)
Class
R6
.......................
(115,496)
(226,880)
(159,345)
(255,652)
Advisor
Class
...................
(2,335,471)
(4,802,895)
(3,436,439)
(6,178,640)
Total
distributions
to
shareholders
.....
(11,221,415)
(24,989,990)
(20,622,407)
(42,757,319)
Capital
share
transactions:
(Note
2
)
Class
A
........................
33,491,321
53,802,482
51,283,340
78,713,171
Class
A1
.......................
(9,335,639)
(17,081,906)
(19,516,251)
(43,978,495)
Class
C
........................
(19,540,319)
(18,170,817)
(20,655,175)
(23,167,170)
Class
R6
.......................
883,138
2,026,637
2,402,045
3,219,335
Advisor
Class
...................
9,960,095
36,090,930
21,229,347
52,834,804
Total
capital
share
transactions
.......
15,458,596
56,667,326
34,743,306
67,621,645
Net
increase
(decrease)
in
net
assets
.....................
8,031,616
114,567,449
23,026,015
152,235,716
Net
assets:
Beginning
of
period
................
1,054,702,248
940,134,799
1,614,372,097
1,462,136,381
End
of
period
.....................
$1,062,733,864
$1,054,702,248
$1,637,398,112
$1,614,372,097
Franklin
Tax-Free
Trust
Financial
Statements
Statements
of
Changes
in
Net
Assets
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
138
Franklin
Oregon
Tax-Free
Income
Fund
Franklin
Pennsylvania
Tax-Free
Income
Fund
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
29,
2020
Six
Months
Ended
August
31,
2020
(unaudited)
Year
Ended
February
29,
2020
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
............
$15,631,766
$32,856,963
$14,807,389
$33,929,872
Net
realized
gain
(loss)
............
(5,234,819)
1,617,254
(573,619)
(252,539)
Net
change
in
unrealized
appreciation
(depreciation)
.................
(13,165,895)
67,050,410
(18,804,320)
42,950,125
Net
increase
(decrease)
in
net
assets
resulting
from
operations
.
(2,768,948)
101,524,627
(4,570,550)
76,627,458
Distributions
to
shareholders:
Class
A
........................
(1,969,446)
(2,821,896)
(1,536,762)
(2,301,344)
Class
A1
.......................
(10,414,086)
(24,156,902)
(10,711,468)
(25,168,435)
Class
C
........................
(1,121,206)
(2,874,855)
(1,550,461)
(4,276,294)
Class
R6
.......................
(257,895)
(482,897)
(42,844)
(85,365)
Advisor
Class
...................
(1,857,520)
(3,572,254)
(1,425,139)
(2,959,543)
Total
distributions
to
shareholders
.....
(15,620,153)
(33,908,804)
(15,266,674)
(34,790,981)
Capital
share
transactions:
(Note
2
)
Class
A
........................
31,153,115
94,317,482
29,396,925
49,405,503
Class
A1
.......................
(16,609,761)
(23,085,408)
(22,694,209)
(41,245,981)
Class
C
........................
(16,747,725)
(7,180,504)
(21,516,157)
(33,218,954)
Class
R6
.......................
986,335
5,595,974
421,268
527,396
Advisor
Class
...................
13,355,249
30,932,107
768,776
13,213,261
Total
capital
share
transactions
.......
12,137,213
100,579,651
(13,623,397)
(11,318,775)
Net
increase
(decrease)
in
net
assets
.....................
(6,251,888)
168,195,474
(33,460,621)
30,517,702
Net
assets:
Beginning
of
period
................
1,322,051,077
1,153,855,603
1,124,674,313
1,094,156,611
End
of
period
.....................
$1,315,799,189
$1,322,051,077
$1,091,213,692
$1,124,674,313
Franklin
Tax-Free
Trust
139
franklintempleton.com
Semiannual
Report
Notes
to
Financial
Statements
(unaudited)
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-
three
separate
funds
(Funds), eight
of
which
are
included
in
this
report
and
applies
the
specialized
accounting
and
reporting
guidance
in
U.S.
Generally
Accepted
Accounting
Principles
(U.S.
GAAP).
The
Funds
offer five classes
of
shares: Class
A,
Class
A1,
Class
C,
Class
R6
and
Advisor
Class.
Class
C
shares
automatically
convert
to
Class
A
shares
after
they
have
been
held
for
10
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
Funds' administrator
has
responsibility
for
oversight
of
valuation,
including
leading
the
cross-functional
Valuation
Committee
(VC).
The
Funds
may
utilize
independent
pricing
services,
quotations
from
securities
and
financial
instrument
dealers,
and
other
market
sources
to
determine
fair
value. 
Debt
securities
generally
trade
in
the
over-the-counter
(OTC)
market
rather
than
on
a
securities
exchange.
The
Funds'
pricing
services
use
multiple
valuation
techniques
to
determine
fair
value.
In
instances
where
sufficient
market
activity
exists,
the
pricing
services
may
utilize
a
market-based
approach
through
which
quotes
from
market
makers
are
used
to
determine
fair
value.
In
instances
where
sufficient
market
activity
may
not
exist
or
is
limited,
the
pricing
services
also
utilize
proprietary
valuation
models
which
may
consider
market
characteristics
such
as
benchmark
yield
curves,
credit
spreads,
estimated
default
rates,
anticipated
market
interest
rate
volatility,
coupon
rates,
anticipated
timing
of
principal
repayments,
underlying
collateral,
and
other
unique
security
features
in
order
to
estimate
the
relevant
cash
flows,
which
are
then
discounted
to
calculate
the
fair
value.
The
Funds
have
procedures
to
determine
the
fair
value
of
financial
instruments
for
which
market
prices
are
not
reliable
or
readily
available.
Under
these
procedures,
the
Funds
primarily
employ
a
market-based
approach
which
may
use
related
or
comparable
assets
or
liabilities,
recent
transactions,
market
multiples,
book
values,
and
other
relevant
information
for
the
investment
to
determine
the
fair
value
of
the
investment.
An
income-based
valuation
approach
may
also
be
used
in
which
the
anticipated
future
cash
flows
of
the
investment
are
discounted
to
calculate
fair
value.
Discounts
may
also
be
applied
due
to
the
nature
or
duration
of
any
restrictions
on
the
disposition
of
the
investments.
Due
to
the
inherent
uncertainty
of
valuations
of
such
investments,
the
fair
values
may
differ
significantly
from
the
values
that
would
have
been
used
had
an
active
market
existed.
b.
Securities
Purchased
on
a
When-Issued
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.
Sufficient
assets
have
been
segregated
for
these
securities.
c.
Income
Taxes
It
is each
Fund's
policy
to
qualify
as
a
regulated
investment
company
under
the
Internal
Revenue
Code. Each
Fund
intends
to
distribute
to
shareholders
substantially
all
of
its
income
and
net
realized
gains
to
relieve
it
from
federal
income
and
excise
taxes.
As
a
result,
no
provision
for
U.S.
federal
income
taxes
is
required.
Each
Fund
may
recognize
an
income
tax
liability
related
to
its
uncertain
tax
positions
under
U.S.
GAAP
when
the
uncertain
tax
position
has
a
less
than
50%
probability
that
it
will
be
sustained
upon
examination
by
the
tax
authorities
based
on
its
technical
merits.
As
of
August
31,
2020, each
Fund
has
determined
that
no
tax
liability
is
required
in
its
financial
statements
related
to
uncertain
tax
positions
for
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
(unaudited)
140
franklintempleton.com
Semiannual
Report
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
(unaudited)
141
franklintempleton.com
Semiannual
Report
2.
Shares
of
Beneficial
Interest
At
August
31,
2020,
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:
Six
Months
ended
August
31,
2020
Shares
sold
a
...................................
3,927,250
$42,902,793
2,055,245
$23,987,988
Shares
issued
in
reinvestment
of
distributions
..........
139,473
1,516,863
90,990
1,060,021
Shares
redeemed
...............................
(2,414,965)
(25,465,049)
(1,063,222)
(12,191,280)
Net
increase
(decrease)
..........................
1,651,758
$18,954,607
1,083,013
$12,856,729
Year
ended
February
29,
2020
Shares
sold
a
...................................
8,061,636
$87,843,839
4,719,149
$54,949,727
Shares
issued
in
reinvestment
of
distributions
..........
200,876
2,200,242
136,713
1,595,412
Shares
redeemed
...............................
(724,150)
(7,920,574)
(632,549)
(7,368,723)
Net
increase
(decrease)
..........................
7,538,362
$82,123,507
4,223,313
$49,176,416
Class
A1
Class
A1
Shares:
Six
Months
ended
August
31,
2020
Shares
sold
...................................
1,684,355
$18,484,760
651,297
$7,578,436
Shares
issued
in
reinvestment
of
distributions
..........
677,555
7,348,387
457,534
5,324,629
Shares
redeemed
...............................
(7,096,884)
(76,423,977)
(4,016,118)
(46,705,494)
Net
increase
(decrease)
..........................
(4,734,974)
$(50,590,830)
(2,907,287)
$(33,802,429)
Year
ended
February
29,
2020
Shares
sold
...................................
3,367,115
$36,498,589
2,054,179
$23,918,501
Shares
issued
in
reinvestment
of
distributions
..........
1,567,850
17,087,280
1,118,244
13,013,213
Shares
redeemed
...............................
(7,636,387)
(83,070,318)
(4,187,488)
(48,652,724)
Net
increase
(decrease)
..........................
(2,701,422)
$(29,484,449)
(1,015,065)
$(11,721,010)
Class
C
Class
C
Shares:
Six
Months
ended
August
31,
2020
Shares
sold
...................................
569,106
$6,302,556
275,918
$3,254,666
Shares
issued
in
reinvestment
of
distributions
..........
68,723
758,164
52,323
616,236
Shares
redeemed
a
..............................
(1,320,810)
(14,580,833)
(1,025,979)
(12,130,299)
Net
increase
(decrease)
..........................
(682,981)
$(7,520,113)
(697,738)
$(8,259,397)
Year
ended
February
29,
2020
Shares
sold
...................................
1,664,994
$18,433,750
1,017,925
$11,983,060
Shares
issued
in
reinvestment
of
distributions
..........
157,621
1,747,106
133,092
1,567,577
Shares
redeemed
a
..............................
(1,950,683)
(21,601,515)
(1,700,603)
(19,970,794)
Net
increase
(decrease)
..........................
(128,068)
$(1,420,659)
(549,586)
$(6,420,157)
Class
R6
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
(unaudited)
142
franklintempleton.com
Semiannual
Report
Franklin
Arizona
Tax-Free
Income
Fund
Franklin
Colorado
Tax-Free
Income
Fund
Shares
Amount
Shares
Amount
Class
R6
Shares:
Six
Months
ended
August
31,
2020
Shares
sold
...................................
357,939
$3,889,796
223,838
$2,597,648
Shares
issued
in
reinvestment
of
distributions
..........
22,463
244,559
16,830
196,135
Shares
redeemed
...............................
(185,609)
(1,979,673)
(145,842)
(1,680,798)
Net
increase
(decrease)
..........................
194,793
$2,154,682
94,826
$1,112,985
Year
ended
February
29,
2020
Shares
sold
...................................
610,842
$6,669,514
524,006
$6,108,954
Shares
issued
in
reinvestment
of
distributions
..........
41,271
451,599
28,666
334,441
Shares
redeemed
...............................
(329,905)
(3,604,838)
(99,578)
(1,160,762)
Net
increase
(decrease)
..........................
322,208
$3,516,275
453,094
$5,282,633
Advisor
Class
Advisor
Class
Shares:
Six
Months
ended
August
31,
2020
Shares
sold
...................................
4,450,173
$47,945,253
1,805,075
$21,043,413
Shares
issued
in
reinvestment
of
distributions
..........
147,375
1,604,354
128,721
1,498,803
Shares
redeemed
...............................
(3,059,658)
(33,005,295)
(1,190,550)
(13,697,924)
Net
increase
(decrease)
..........................
1,537,890
$16,544,312
743,246
$8,844,292
Year
ended
February
29,
2020
Shares
sold
...................................
4,340,408
$47,470,120
3,011,612
$34,907,451
Shares
issued
in
reinvestment
of
distributions
..........
252,359
2,762,201
266,337
3,102,143
Shares
redeemed
...............................
(2,004,683)
(21,884,878)
(1,762,527)
(20,462,529)
Net
increase
(decrease)
..........................
2,588,084
$28,347,443
1,515,422
$17,547,065
2.
Shares
of
Beneficial
Interest
(continued)
a
May
include
a
portion
of
Class
C
shares
that
were
automatically
converted
to
Class
A.
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
(unaudited)
143
franklintempleton.com
Semiannual
Report
Franklin
Connecticut
Tax-Free
Income
Fund
Franklin
Michigan
Tax-Free
Income
Fund
Shares
Amount
Shares
Amount
Class
A
Class
A
Shares:
Six
Months
ended
August
31,
2020
Shares
sold
a
...................................
573,712
$5,855,516
2,121,719
$25,132,857
Shares
issued
in
reinvestment
of
distributions
..........
27,612
280,009
70,821
837,248
Shares
redeemed
...............................
(139,983)
(1,413,958)
(905,044)
(10,539,223)
Net
increase
(decrease)
..........................
461,341
$4,721,567
1,287,496
$15,430,882
Year
ended
February
29,
2020
Shares
sold
a
...................................
964,186
$9,818,136
3,802,213
$44,425,894
Shares
issued
in
reinvestment
of
distributions
..........
48,283
493,122
103,843
1,217,159
Shares
redeemed
...............................
(295,523)
(3,005,484)
(675,810)
(7,893,604)
Net
increase
(decrease)
..........................
716,946
$7,305,774
3,230,246
$37,749,449
Class
A1
Class
A1
Shares:
Six
Months
ended
August
31,
2020
Shares
sold
...................................
115,701
$1,185,426
710,978
$8,379,774
Shares
issued
in
reinvestment
of
distributions
..........
162,984
1,650,417
668,929
7,894,399
Shares
redeemed
...............................
(858,075)
(8,672,140)
(2,518,614)
(29,491,728)
Net
increase
(decrease)
..........................
(579,390)
$(5,836,297)
(1,138,707)
$(13,217,555)
Year
ended
February
29,
2020
Shares
sold
...................................
458,551
$4,686,045
1,425,069
$16,611,056
Shares
issued
in
reinvestment
of
distributions
..........
387,962
3,954,452
1,503,126
17,552,461
Shares
redeemed
...............................
(2,329,545)
(23,715,844)
(6,440,823)
(75,020,883)
Net
increase
(decrease)
..........................
(1,483,032)
$(15,075,347)
(3,512,628)
$(40,857,366)
Class
C
Class
C
Shares:
Six
Months
ended
August
31,
2020
Shares
sold
...................................
63,299
$654,242
373,470
$4,470,249
Shares
issued
in
reinvestment
of
distributions
..........
18,947
193,402
53,973
647,030
Shares
redeemed
a
..............................
(391,739)
(4,012,487)
(1,375,439)
(16,473,828)
Net
increase
(decrease)
..........................
(309,493)
$(3,164,843)
(947,996)
$(11,356,549)
Year
ended
February
29,
2020
Shares
sold
...................................
342,083
$3,512,841
1,164,245
$13,797,257
Shares
issued
in
reinvestment
of
distributions
..........
53,928
554,120
130,094
1,543,501
Shares
redeemed
a
..............................
(1,019,257)
(10,468,529)
(1,852,423)
(21,869,385)
Net
increase
(decrease)
..........................
(623,246)
$(6,401,568)
(558,084)
$(6,528,627)
Class
R6
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
(unaudited)
144
franklintempleton.com
Semiannual
Report
Franklin
Connecticut
Tax-Free
Income
Fund
Franklin
Michigan
Tax-Free
Income
Fund
Shares
Amount
Shares
Amount
Class
R6
Shares:
Six
Months
ended
August
31,
2020
Shares
sold
...................................
5,554
$57,000
64,871
$772,663
Shares
issued
in
reinvestment
of
distributions
..........
420
4,255
4,715
55,897
Shares
redeemed
...............................
(2,901)
(29,572)
(26,784)
(314,783)
Net
increase
(decrease)
..........................
3,073
$31,683
42,802
$513,777
Year
ended
February
29,
2020
Shares
sold
...................................
13,754
$139,500
91,345
$1,068,364
Shares
issued
in
reinvestment
of
distributions
..........
797
8,135
8,759
102,820
Shares
redeemed
...............................
(356)
(3,628)
(23,957)
(281,383)
Net
increase
(decrease)
..........................
14,195
$144,007
76,147
$889,801
Advisor
Class
Advisor
Class
Shares:
Six
Months
ended
August
31,
2020
Shares
sold
...................................
231,297
$2,342,599
1,587,528
$18,811,610
Shares
issued
in
reinvestment
of
distributions
..........
21,555
218,209
87,431
1,035,752
Shares
redeemed
...............................
(234,494)
(2,365,937)
(877,032)
(10,283,684)
Net
increase
(decrease)
..........................
18,358
$194,871
797,927
$9,563,678
Year
ended
February
29,
2020
Shares
sold
...................................
613,321
$6,243,181
1,964,333
$23,027,381
Shares
issued
in
reinvestment
of
distributions
..........
48,272
491,979
157,109
1,842,365
Shares
redeemed
...............................
(658,670)
(6,686,477)
(1,082,628)
(12,665,691)
Net
increase
(decrease)
..........................
2,923
$48,683
1,038,814
$12,204,055
a
May
include
a
portion
of
Class
C
shares
that
were
automatically
converted
to
Class
A.
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
(unaudited)
145
franklintempleton.com
Semiannual
Report
Franklin
Minnesota
Tax-Free
Income
Fund
Franklin
Ohio
Tax-Free
Income
Fund
Shares
Amount
Shares
Amount
Class
A
Class
A
Shares:
Six
Months
ended
August
31,
2020
Shares
sold
a
...................................
3,237,243
$40,849,784
4,687,111
$61,246,601
Shares
issued
in
reinvestment
of
distributions
..........
85,404
1,076,818
162,305
2,113,056
Shares
redeemed
...............................
(672,756)
(8,435,281)
(937,564)
(12,076,317)
Net
increase
(decrease)
..........................
2,649,891
$33,491,321
3,911,852
$51,283,340
Year
ended
February
29,
2020
Shares
sold
a
...................................
4,814,682
$60,031,592
6,795,833
$87,458,472
Shares
issued
in
reinvestment
of
distributions
..........
118,094
1,477,000
223,324
2,880,621
Shares
redeemed
...............................
(617,078)
(7,706,110)
(902,512)
(11,625,922)
Net
increase
(decrease)
..........................
4,315,698
$53,802,482
6,116,645
$78,713,171
Class
A1
Class
A1
Shares:
Six
Months
ended
August
31,
2020
Shares
sold
...................................
1,452,320
$18,297,187
1,777,901
$23,155,979
Shares
issued
in
reinvestment
of
distributions
..........
461,754
5,817,101
902,531
11,733,493
Shares
redeemed
...............................
(2,683,453)
(33,449,927)
(4,239,376)
(54,405,723)
Net
increase
(decrease)
..........................
(769,379)
$(9,335,639)
(1,558,944)
$(19,516,251)
Year
ended
February
29,
2020
Shares
sold
...................................
3,284,425
$40,947,538
3,810,729
$48,907,076
Shares
issued
in
reinvestment
of
distributions
..........
1,093,377
13,639,953
2,014,709
25,922,089
Shares
redeemed
...............................
(5,753,414)
(71,669,397)
(9,256,382)
(118,807,660)
Net
increase
(decrease)
..........................
(1,375,612)
$(17,081,906)
(3,430,944)
$(43,978,495)
Class
C
Class
C
Shares:
Six
Months
ended
August
31,
2020
Shares
sold
...................................
522,348
$6,648,151
1,044,040
$13,780,620
Shares
issued
in
reinvestment
of
distributions
..........
79,900
1,017,335
144,148
1,899,159
Shares
redeemed
a
..............................
(2,139,253)
(27,205,805)
(2,755,467)
(36,334,954)
Net
increase
(decrease)
..........................
(1,537,005)
$(19,540,319)
(1,567,279)
$(20,655,175)
Year
ended
February
29,
2020
Shares
sold
...................................
1,601,343
$20,199,230
2,283,887
$29,786,736
Shares
issued
in
reinvestment
of
distributions
..........
223,164
2,815,070
350,621
4,572,885
Shares
redeemed
a
..............................
(3,270,276)
(41,185,117)
(4,420,520)
(57,526,791)
Net
increase
(decrease)
..........................
(1,445,769)
$(18,170,817)
(1,786,012)
$(23,167,170)
Class
R6
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
(unaudited)
146
franklintempleton.com
Semiannual
Report
Franklin
Minnesota
Tax-Free
Income
Fund
Franklin
Ohio
Tax-Free
Income
Fund
Shares
Amount
Shares
Amount
Class
R6
Shares:
Six
Months
ended
August
31,
2020
Shares
sold
...................................
184,308
$2,325,611
267,248
$3,471,101
Shares
issued
in
reinvestment
of
distributions
..........
8,875
112,015
11,651
151,788
Shares
redeemed
...............................
(126,557)
(1,554,488)
(94,917)
(1,220,844)
Net
increase
(decrease)
..........................
66,626
$883,138
183,982
$2,402,045
Year
ended
February
29,
2020
Shares
sold
...................................
249,218
$3,107,945
349,829
$4,505,283
Shares
issued
in
reinvestment
of
distributions
..........
17,467
218,452
18,974
244,769
Shares
redeemed
...............................
(104,207)
(1,299,760)
(118,977)
(1,530,717)
Net
increase
(decrease)
..........................
162,478
$2,026,637
249,826
$3,219,335
Advisor
Class
Advisor
Class
Shares:
Six
Months
ended
August
31,
2020
Shares
sold
...................................
2,554,551
$32,142,818
3,380,598
$43,842,216
Shares
issued
in
reinvestment
of
distributions
..........
181,235
2,286,849
247,366
3,221,212
Shares
redeemed
...............................
(1,972,720)
(24,469,572)
(1,997,554)
(25,834,081)
Net
increase
(decrease)
..........................
763,066
$9,960,095
1,630,410
$21,229,347
Year
ended
February
29,
2020
Shares
sold
...................................
4,918,231
$61,263,780
5,774,953
$74,297,443
Shares
issued
in
reinvestment
of
distributions
..........
375,123
4,689,137
443,356
5,715,066
Shares
redeemed
...............................
(2,399,236)
(29,861,987)
(2,108,985)
(27,177,705)
Net
increase
(decrease)
..........................
2,894,118
$36,090,930
4,109,324
$52,834,804
a
May
include
a
portion
of
Class
C
shares
that
were
automatically
converted
to
Class
A.
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
(unaudited)
147
franklintempleton.com
Semiannual
Report
Franklin
Oregon
Tax-Free
Income
Fund
Franklin
Pennsylvania
Tax-Free
Income
Fund
Shares
Amount
Shares
Amount
Class
A
Class
A
Shares:
Six
Months
ended
August
31,
2020
Shares
sold
a
...................................
4,067,761
$47,984,495
3,575,523
$35,417,281
Shares
issued
in
reinvestment
of
distributions
..........
160,723
1,887,175
145,712
1,438,299
Shares
redeemed
...............................
(1,605,858)
(18,718,555)
(760,684)
(7,458,655)
Net
increase
(decrease)
..........................
2,622,626
$31,153,115
2,960,551
$29,396,925
Year
ended
February
29,
2020
Shares
sold
a
...................................
8,821,390
$102,920,549
6,286,755
$62,389,689
Shares
issued
in
reinvestment
of
distributions
..........
233,418
2,732,041
217,848
2,166,093
Shares
redeemed
...............................
(970,175)
(11,335,108)
(1,526,218)
(15,150,279)
Net
increase
(decrease)
..........................
8,084,633
$94,317,482
4,978,385
$49,405,503
Class
A1
Class
A1
Shares:
Six
Months
ended
August
31,
2020
Shares
sold
...................................
1,921,718
$22,465,364
929,737
$9,174,786
Shares
issued
in
reinvestment
of
distributions
..........
824,383
9,665,779
974,276
9,607,198
Shares
redeemed
...............................
(4,206,637)
(48,740,904)
(4,213,624)
(41,476,193)
Net
increase
(decrease)
..........................
(1,460,536)
$(16,609,761)
(2,309,611)
$(22,694,209)
Year
ended
February
29,
2020
Shares
sold
...................................
4,647,678
$54,057,915
3,607,852
$35,709,420
Shares
issued
in
reinvestment
of
distributions
..........
1,910,051
22,277,059
2,266,052
22,499,914
Shares
redeemed
...............................
(8,539,624)
(99,420,382)
(10,029,133)
(99,455,315)
Net
increase
(decrease)
..........................
(1,981,895)
$(23,085,408)
(4,155,229)
$(41,245,981)
Class
C
Class
C
Shares:
Six
Months
ended
August
31,
2020
Shares
sold
...................................
676,793
$8,076,396
430,538
$4,310,732
Shares
issued
in
reinvestment
of
distributions
..........
92,235
1,098,312
142,513
1,424,108
Shares
redeemed
a
..............................
(2,186,545)
(25,922,433)
(2,716,284)
(27,250,997)
Net
increase
(decrease)
..........................
(1,417,517)
$(16,747,725)
(2,143,233)
$(21,516,157)
Year
ended
February
29,
2020
Shares
sold
...................................
2,432,978
$28,811,943
1,387,673
$13,946,172
Shares
issued
in
reinvestment
of
distributions
..........
236,076
2,796,966
387,768
3,900,703
Shares
redeemed
a
..............................
(3,279,068)
(38,789,413)
(5,081,672)
(51,065,829)
Net
increase
(decrease)
..........................
(610,014)
$(7,180,504)
(3,306,231)
$(33,218,954)
Class
R6
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
(unaudited)
148
franklintempleton.com
Semiannual
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:
Six
Months
ended
August
31,
2020
Shares
sold
...................................
254,799
$2,986,400
83,441
$826,403
Shares
issued
in
reinvestment
of
distributions
..........
21,820
256,099
4,115
40,657
Shares
redeemed
...............................
(193,423)
(2,256,164)
(46,387)
(445,792)
Net
increase
(decrease)
..........................
83,196
$986,335
41,169
$421,268
Year
ended
February
29,
2020
Shares
sold
...................................
605,625
$7,056,533
87,172
$868,055
Shares
issued
in
reinvestment
of
distributions
..........
40,739
476,076
8,047
80,076
Shares
redeemed
...............................
(165,899)
(1,936,635)
(42,431)
(420,735)
Net
increase
(decrease)
..........................
480,465
$5,595,974
52,788
$527,396
Advisor
Class
Advisor
Class
Shares:
Six
Months
ended
August
31,
2020
Shares
sold
...................................
2,414,406
$28,439,142
1,193,819
$11,767,934
Shares
issued
in
reinvestment
of
distributions
..........
149,473
1,755,423
129,800
1,282,140
Shares
redeemed
...............................
(1,447,636)
(16,839,316)
(1,248,989)
(12,281,298)
Net
increase
(decrease)
..........................
1,116,243
$13,355,249
74,630
$768,776
Year
ended
February
29,
2020
Shares
sold
...................................
4,166,300
$48,624,793
3,336,834
$33,139,613
Shares
issued
in
reinvestment
of
distributions
..........
288,112
3,367,698
264,571
2,632,196
Shares
redeemed
...............................
(1,807,421)
(21,060,384)
(2,271,911)
(22,558,548)
Net
increase
(decrease)
..........................
2,646,991
$30,932,107
1,329,494
$13,213,261
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
Templeton
Distributors,
Inc.
(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
(unaudited)
149
franklintempleton.com
Semiannual
Report
a.
Management
Fees
The
Funds
pay
an
investment
management
fee
to
Advisers
based
on
the
month-end
net
assets
of
each
of
the
Funds
as
follows:
For
the
period
ended
August
31,
2020,
each
Fund's
annualized
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
........
0.476%
0.485%
0.562%
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%
0.477%
0.468%
Franklin
Oregon
Tax-
Free
Income
Fund
Franklin
Pennsylvania
Tax-Free
Income
Fund
Gross
effective
investment
management
fee
rate
........
0.471%
0.474%
3.
Transactions
with
Affiliates
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
(unaudited)
150
franklintempleton.com
Semiannual
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
period:
e.
Transfer
Agent
Fees
Each
class
of
shares
pays
transfer
agent
fees
to
Investor
Services
for
its
performance
of
shareholder
servicing
obligations.
The
fees
are
based
on
an
annualized
asset
based
fee
of
0.02%
plus
a
transaction
based
fee.
In
addition,
each
class
reimburses
Investor
Services
for
out
of
pocket
expenses
incurred
and,
except
for
Class
R6,
reimburses
shareholder
servicing
fees
paid
to
third
parties.
These
fees
are
allocated
daily
based
upon
their
relative
proportion
of
such
classes'
aggregate
net
assets.
Class
R6
pays
Investor
Services
transfer
agent
fees
specific
to
that
class.
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
..................
$12,966
$12,113
$1,874
$9,749
CDSC
retained
...........................
$(45,496)
$5,837
$233
$12,974
Franklin
Minnesota
Tax-
Free
Income
Fund
Franklin
Ohio
Tax-Free
Income
Fund
Franklin
Oregon
Tax-
Free
Income
Fund
Franklin
Pennsylvania
Tax-Free
Income
Fund
Sales
charges
retained
net
of
commissions
paid
to
unaffiliated
brokers/dealers
..................
$16,057
$23,416
$24,562
$10,781
CDSC
retained
...........................
$12,226
$22,845
$14,470
$8,800
3.
Transactions
with
Affiliates
(continued)
c.
Distribution
Fees
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
(unaudited)
151
franklintempleton.com
Semiannual
Report
For
the
period
ended
August
31,
2020,
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
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,
2021.
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
and
sales
for
the
period
ended
August
31,
2020,
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 period
ended
August
31,
2020 the
custodian
fees
were
reduced
as
noted
in
the
Statements
of
Operations.
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
........................
$135,057
$106,016
$35,851
$167,840
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
........................
$164,182
$239,574
$177,153
$183,364
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
..............................
$25,625,000
$4,800,000
$1,000,000
$2,600,000
Sales
..................................
$22,100,000
$42,325,000
$800,000
$3,400,000
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
..............................
$18,600,000
$34,505,000
$70,655,000
$29,175,000
Sales
..................................
$16,100,000
$27,200,000
$17,755,000
$3,400,000
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
(unaudited)
152
franklintempleton.com
Semiannual
Report
5.
Income
Taxes
For
tax
purposes,
capital
losses
may
be
carried
over
to
offset
future
capital
gains. 
At
February
29,
2020,
the
capital
loss
carryforwards
were
as
follows:
At
August
31,
2020,
the
cost
of
investments
and
net
unrealized
appreciation
(depreciation)
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,
defaulted
securities,
non-deductible
expenses
and
workout
costs.
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
.............................
$
14,068,474
$
15,324,045
$
7,217,969
$
12,135,309
Long
term
.............................
45,070,093
32,054,981
28,184,198
56,793,692
Total
capital
loss
carryforwards
............
$59,138,567
$47,379,026
$35,402,167
$68,929,001
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
.............................
$
8,015,698
$
18,712,526
$
18,913,644
$
12,586,107
Long
term
.............................
2,525,891
15,808,552
53,704,100
79,281,529
Total
capital
loss
carryforwards
............
$10,541,589
$34,521,078
$72,617,744
$91,867,636
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
.......................
$905,889,001
$654,161,357
$192,101,575
$885,593,153
Unrealized
appreciation
.....................
$72,307,125
$52,997,877
$11,813,846
$76,672,403
Unrealized
depreciation
.....................
(2,339,305)
(421,317)
(60,059)
(125,061)
Net
unrealized
appreciation
(depreciation)
.......
$69,967,820
$52,576,560
$11,753,787
$76,547,342
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
.......................
$996,972,638
$1,492,782,656
$1,199,049,637
$1,006,717,190
Unrealized
appreciation
.....................
$73,524,772
$123,141,306
$93,745,156
$54,153,420
Unrealized
depreciation
.....................
(571,186)
(285,575)
(3,884,170)
(3,557,325)
Net
unrealized
appreciation
(depreciation)
.......
$72,953,586
$122,855,731
$89,860,986
$50,596,095
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
(unaudited)
153
franklintempleton.com
Semiannual
Report
6.
Investment
Transactions
Purchases
and
sales
of
investments
(excluding
short
term
securities)
for
the
period
ended
August
31,
2020,
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.
At
August
31,
2020,
the
aggregate
value
of
these
securities
for
Franklin
Oregon
Tax-Free
Income
Fund
and
Franklin
Pennsylvania
Tax-Free
Income
Fund
was
$6,698,213
and
$6,912,500
representing
0.5%
and
0.6%,
respectively,
of
each
Fund's
net
assets.
The
Funds
discontinue
accruing
income
on
securities
for
which
income
has
been
deemed
uncollectible
and
provide
an
estimate
for
losses
on
interest
receivable.
The
securities
have
been
identified
in
the
accompanying
Statements
of
Investments.
8.
Concentration
of
Risk
Certain
or
all
Funds
invest
a
large
percentage
of
their
total
assets
in
obligations
of
issuers
within
their respective
state
and
U.S.
territories.
Such
concentration
may
subject
the
Funds
to
risks
associated
with
industrial
or
regional
matters,
and
economic,
political
or
legal
developments
occurring
within
those
states
and
U.S.
territories.
Investing
in
Puerto
Rico
securities
may
expose
the
Funds
to
heightened
risks
due
to
recent
adverse
economic
and
market
changes,
credit
downgrades
and
ongoing
restructuring
discussions.
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. 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.
10.
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
billion
(Global
Credit
Facility)
which
matures
on
February
5,
2021.
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.
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
..............................
$92,110,081
$93,384,071
$18,914,613
$51,736,278
Sales
..................................
$116,330,317
$95,439,072
$21,727,090
$23,000,000
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
..............................
$69,268,495
$158,052,627
$144,564,495
$131,748,157
Sales
..................................
$40,604,294
$121,197,893
$180,172,835
$154,027,596
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
(unaudited)
154
franklintempleton.com
Semiannual
Report
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
period
ended
August
31,
2020,
the
Funds
did
not
use
the
Global
Credit
Facility.
11.
Fair
Value
Measurements
The
Funds
follow
a
fair
value
hierarchy
that
distinguishes
between
market
data
obtained
from
independent
sources
(observable
inputs)
and
the Funds’
own
market
assumptions
(unobservable
inputs).
These
inputs
are
used
in
determining
the
value
of
the
Funds'
financial
instruments
and
are
summarized
in
the
following
fair
value
hierarchy:
Level
1
–
quoted
prices
in
active
markets
for
identical
financial
instruments
Level
2
–
other
significant
observable
inputs
(including
quoted
prices
for
similar
financial
instruments,
interest
rates,
prepayment
speed,
credit
risk,
etc.)
Level
3
–
significant
unobservable
inputs
(including
the
Funds'
own
assumptions
in
determining
the
fair
value
of
financial
instruments)
The
input
levels
are
not
necessarily
an
indication
of
the
risk
or
liquidity
associated
with
financial
instruments
at
that
level.
At
August
31,
2020,
all
of
the
Funds’
investments
in
financial
instruments
carried
at
fair
value
were
valued
using
Level
2
inputs.
For
detailed
categories,
see
the
accompanying
Statements
of
Investments.
12.
New
Accounting
Pronouncements
In
March
2020,
the
Financial
Accounting
Standards
Board
(FASB)
issued
Accounting
Standards
Update
(ASU)
No.
2020-
04,
Reference
Rate
Reform
(Topic
848)
–
Facilitation
of
the
Effects
of
Reference
Rate
Reform
on
Financial
Reporting.
The
amendments
in
the
ASU
provides
optional
temporary
financial
reporting
relief
from
the
effect
of
certain
types
of
contract
modifications
due
to
the
planned
discontinuation
of
the
London
Interbank
Offered
Rate
(LIBOR)
and
other
interbank-offered
based
reference
rates
as
of
the
end
of
2021.
The
ASU
is
effective
for
certain
reference
rate-related
contract
modifications
that
occur
during
the
period
March
12,
2020
through
December
31,
2022. Management
has
reviewed
the
requirements
and
believes
the
adoption
of
this
ASU
will
not
have
a
material
impact
on
the
financial
statements.
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.
10.
Credit
Facility
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
(unaudited)
155
franklintempleton.com
Semiannual
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
FNMA
Federal
National
Mortgage
Association
GNMA
Government
National
Mortgage
Association
GO
General
Obligation
LOC
Letter
of
Credit
MAC
Municipal
Assurance
Corp
NATL
National
Reinsurance
Corp.
SPA
Standby
Purchase
Agreement
XLCA
XL
Capital
Assurance,
Inc.
Franklin
Tax-Free
Trust
Shareholder
Information
156
franklintempleton.com
Semiannual
Report
Liquidity
Risk
Management
Program
Each
of
the
Funds
has
adopted
and
implemented
a
written
Liquidity
Risk
Management
Program
(the
“LRMP”)
as
required
by
Rule
22e-4
under
the
Investment
Company
Act
of
1940
(the
“Liquidity
Rule”).
The
LRMP
is
designed
to
assess
and
manage
each
Fund’s
liquidity
risk,
which
is
defined
as
the
risk
that
the
Fund
could
not
meet
requests
to
redeem
shares
issued
by
the
Fund
without
significant
dilution
of
remaining
investors’
interests
in
the
Fund.
In
accordance
with
the
Liquidity
Rule,
the
LRMP
includes
policies
and
procedures
that
provide
for:
(1)
assessment,
management,
and
review
(no
less
frequently
than
annually)
of
each
Fund’s
liquidity
risk;
(2)
classification
of
each
Fund’s
portfolio
holdings
into
one
of
four
liquidity
categories
(Highly
Liquid,
Moderately
Liquid,
Less
Liquid,
and
Illiquid);
(3)
for
Funds
that
do
not
primarily
hold
assets
that
are
Highly
Liquid,
establishing
and
maintaining
a
minimum
percentage
of
the
Fund’s
net
assets
in
Highly
Liquid
investments
(called
a
“Highly
Liquid
Investment
Minimum”
or
“HLIM”);
and
(4)
prohibiting
the
Fund’s
acquisition
of
Illiquid
investments
that
would
result
in
the
Fund
holding
more
than
15%
of
its
net
assets
in
Illiquid
assets.
The
LRMP
also
requires
reporting
to
the
SEC
(on
a
non-public
basis)
and
to
the
Board
if
the
Fund’s
holdings
of
Illiquid
assets
exceed
15%
of
the
Fund’s
net
assets.
Funds
with
HLIMs
must
have
procedures
for
addressing
HLIM
shortfalls,
including
reporting
to
the
Board
and,
with
respect
to
HLIM
shortfalls
lasting
more
than
seven
consecutive
calendar
days,
reporting
to
the
Securities
and
Exchange
Commission
(“SEC”)
(on
a
non-public
basis).
The
Funds’
Board
of
Trustees
approved
the
appointment
of
the
Director
of
Liquidity
Risk
within
the
Investment
Risk
Management
Group
(the
“IRMG”)
as
the
Administrator
of
the
LRMP.
The
IRMG
maintains
the
Investment
Liquidity
Committee
(the
“ILC”)
to
provide
oversight
and
administration
of
policies
and
procedures
governing
liquidity
risk
management
for
FT
products
and
portfolios.
The
ILC
includes
representatives
from
Franklin
Templeton’s
Risk,
Trading,
Global
Compliance,
Investment
Compliance,
Investment
Operations,
Valuation
Committee
and
Product
Management
groups.
In
assessing
and
managing
each
Fund’s
liquidity
risk,
the
ILC
considers,
as
relevant,
a
variety
of
factors,
including
the
Fund’s
investment
strategy
and
the
liquidity
of
its
portfolio
investments
during
both
normal
and
reasonably
foreseeable
stressed
conditions;
its
short
and
long-term
cash
flow
projections;
and
its
cash
holdings
and
access
to
other
funding
sources
including
the
Funds’
interfund
lending
facility
and
line
of
credit..
Classification
of
the
Fund’s
portfolio
holdings
in
the
four
liquidity
categories
is
based
on
the
number
of
days
it
is
reasonably
expected
to
take
to
convert
the
investment
to
cash
(for
Highly
Liquid
and
Moderately
Liquid
holdings)
or
sell
or
dispose
of
the
investment
(for
Less
Liquid
and
Illiquid
investments),
in
current
market
conditions
without
significantly
changing
the
investment’s
market
value.
The
Fund
primarily
holds
liquid
assets
that
are
defined
under
the
Liquidity
Rule
as
"Highly
Liquid
Investments,"
and
therefore
is
not
required
to
establish
an
HLIM.
Highly
Liquid
Investments
are
defined
as
cash
and
any
investment
reasonably
expected
to
be
convertible
to
cash
in
current
market
conditions
in
three
business
days
or
less
without
the
conversion
to
cash
significantly
changing
the
market
value
of
the
investment.
At
meetings
of
the
Funds’
Board
of
Trustees
held
in
May
2020,
the
Program
Administrator
provided
a
written
report
to
the
Board
addressing
the
adequacy
and
effectiveness
of
the
program
during
the
period
December
1,
2018
to
December
31,
2019.
The
Program
Administrator
report
concluded
that
(i.)
the
LRMP,
as
adopted
and
implemented,
remains
reasonably
designed
to
assess
and
manage
each
Fund’s
liquidity
risk;
(ii.)
the
LRMP,
including
the
Highly
Liquid
Investment
Minimum
(“HLIM”)
where
applicable,
was
implemented
and
operated
effectively
to
achieve
the
goal
of
assessing
and
managing
each
Fund’s
liquidity
risk;
and
(iii.)
each
Fund
was
able
to
meet
requests
for
redemption
without
significant
dilution
of
remaining
investors’
interests
in
the
Fund.
At
the
same
time,
the
Program
Administrator
also
presented
the
Fund
Board
of
Trustees
an
update
on
liquidity
during
the
first
quarter
of
2020
in
relation
to
the
COVID-19
pandemic.
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
Franklin
Tax-Free
Trust
Shareholder
Information
157
franklintempleton.com
Semiannual
Report
proxy
voting
records
are
also
made
available
online
at
franklintempleton.com
and
posted
on
the
U.S.
Securities
and
Exchange
Commission’s
website
at
sec.gov
and
reflect
the
most
recent
12-month
period
ended
June
30.
Quarterly
Statement
of
Investments
The
Trust
files
a
complete
statement
of
investments
with
the
U.S.
Securities
and
Exchange
Commission
for
the
first
and
third
quarters
for
each
fiscal
year
as
an
exhibit
to
its
report
on
Form
N-PORT.
Shareholders
may
view
the
filed
Form
N-PORT
by
visiting
the
Commission’s
website
at
sec.
gov.
The
filed
form
may
also
be
viewed
and
copied
at
the
Commission’s
Public
Reference
Room
in
Washington,
DC.
Information
regarding
the
operations
of
the
Public
Reference
Room
may
be
obtained
by
calling
(800)
SEC-0330.
Householding
of
Reports
and
Prospectuses
You
will
receive
each
Fund’s
financial
reports
every
six
months
as
well
as
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
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
S
10/20
©
2020
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.
Semiannual
Report
and
Shareholder
Letter
Franklin
Tax-Free
Trust
Investment
Manager
Distributor
Shareholder
Services
Franklin
Advisors,
Inc.
Franklin
Templeton
Distributors,
Inc.
(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 he is "independent" as defined under the relevant Securities and Exchange Commission Rules and Releases.
 
Item 4. Principal Accountant Fees and Services.       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.
During the period covered by this report, a third-party service provider commenced performing certain accounting and administrative services for the Registrant that are subject to Franklin Templeton’s oversight.
 
 
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 Gaston Gardey, Chief Financial Officer and Chief Accounting Officer
 
 
(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Gaston Gardey, Chief Financial Officer and Chief Accounting Officer
 
 
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
FRANKLIN
TAX-FREE TRUST
 
 
 
By _ S\MATTHEW T. HINKLE ______
      Matthew T. Hinkle
      Chief Executive Officer –
  Finance and Administration
Date October 27, 2020
 
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 October 27, 2020
 
 
 
By ___S\GASTON GARDEY___________
      Gaston Gardey
      Chief Financial Officer and
  Chief Accounting Officer
Date October 27, 2020
 EX-99.CERT 2 section302.htm
 
 
I, Gaston Gardey, certify that:
 
1. I have reviewed this report on Form N-CSR of Franklin Tax-Free Trust;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;   
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
 
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
 
(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
 
(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and 
5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
 
10/27/2020
 
 
 
S\GASTON GARDEY
 
Gaston Gardey
Chief Financial Officer and Chief Accounting Officer
 

 
 
I, Matthew T. Hinkle, certify that:
 
1. I have reviewed this report on Form N-CSR of Franklin Tax-Free Trust;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;   
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
 
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
 
(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
 
(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and 
5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
 
10/27/2020
 
 
 
S\MATTHEW T. HINKLE
 
Matthew T. Hinkle
Chief Executive Officer - Finance and Administration
 

 
 
 EX-99.906 CERT 3 section906.htm
CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350
AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

 
I, Gaston Gardey, Chief Financial Officer of the Franklin Tax-Free Trust (the “Registrant”), certify, pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:
 
1.
                 
The periodic report on Form N-CSR of the Registrant for the period ended 8/31/2020 (the “Form N-CSR”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
 
2.
                 
The information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant.
 
Dated:  10/27/2020
 
                                                S\GASTON GARDEY
 
                                                Gaston Gardey
Chief Financial Officer and Chief Accounting Officer
                        

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350
AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

 
I, Matthew T. Hinkle, Chief Executive Officer of the Franklin Tax-Free Trust (the “Registrant”), certify, pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:
 
3.
                 
The periodic report on Form N-CSR of the Registrant for the period ended 8/31/2020 (the “Form N-CSR”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
 
4.
                 
The information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant.
 
Dated:  10/27/2020
 
                                                S\MATTHEW T. HINKLE
 
                                                Matthew T. Hinkle
Chief Executive Officer - Finance and Administration
                        

 
 
 EX-99.CODE ETH 4 coe.htm
Code of Ethics for Principal Executives
&
Senior Financial
Officers
 
 
 
Procedures              
Revised December 10, 2018
 
 
 
 

FRANKLIN
TEMPLETON
FUNDS

 
CODE OF ETHICS
FOR
PRINCIPAL
EXECUTIVES
AND
SENIOR FINANCIAL OFFICERS
 

I.
            
Covered
Officers and Purpose of the Code

 
This
code
of
ethics
(the
"Code")
applies
to
the
Principal
Executive
Officers,
Principal
Financial
Officer
and
Principal
Accounting
Officer
(the
"Covered
Officers,"
each
of
whom
is
set
forth in
Exhibit
A)
of
each investment
company
advised by
a
Franklin
Resources
subsidiary
and
that
is
registered
with
the
United
States
Securities
&
Exchange
Commission
(“SEC”)
(collectively,
"FT
Funds")
for
the
purpose
of
promoting:
 
·
        
Honest
and
ethical
conduct,
including
the
ethical
resolution
of
actual
or
apparent
conflicts
of
interest
between
personal
and
professional
relationships;
·
        
Full,
fair,
accurate,
timely
and
understandable
disclosure
in
reports
and
documents
that
a
registrant
files
with,
or
submits
to,
the
SEC
and
in
other
public
communications
made
by
or
on
behalf
of
the
FT
Funds;
·
        
Compliance
with
applicable
laws
and
governmental
rules
and
regulations;
·
        
The
prompt
internal
reporting
of
violations
of
the
Code
to
an
appropriate
person
or
persons
identified
in
the
Code;
and
·
        
Accountability
for
adherence
to
the
Code.
 
Each
Covered
Officer
will
be
expected
to
adhere
to
a
high
standard
of
business
ethics
and
must
be
sensitive
to
situations
that
may
give
rise
to
actual
as
well
as
apparent
conflicts
of
interest.
 
 
 
 
*
Rule 38a-1
under
the
Investment
Company
Act of 1940
(“1940
Act”)
and
Rule
206(4)-7
under
the
Investment
Advisers
Act
of
1940 (“Advisers Act”)
(together
the “Compliance Rule”)
require registered
investment
companies
and
registered
investment
advisers
to,
among other
things, adopt and implement
written
policies
and
procedures reasonably
designed to
prevent
violations
of the
federal
securities
laws
(“Compliance
Rule
Policies
and
Procedures”).
 
CONFIDENTIAL
INFORMATION.
 
This
document
is
the
proprietary
product
of
Franklin
Templeton
Investments.
It
may
NOT
be
distributed
outside
the
company
unless
it is
made subject to
a
non-disclosure agreement
and/or
such
release
receives
authorization
by
an FTI
Chief Compliance
Officer.
 
Any
unauthorized
use,
reproduction
or
transfer
of this
document
is strictly
prohibited.
Franklin
Templeton
Investments
©
2014.
All
Rights Reserved.
 

 

II.
             
Other Policies and Procedures
 
This
Code
shall
be
the
sole
code
of
ethics
adopted
by
the
Funds
for
purposes
of
Section
406
of
the
Sarbanes-Oxley
Act
and
the
rules
and
forms
applicable
to
registered
investment
companies
thereunder.
 
Franklin
Resources,
Inc.
has
separately
adopted
the
Code
of
Ethics
and
Business
Conduct
(“Business
Conduct”),
which
is
applicable
to
all
officers,
directors
and
employees
of
Franklin
Resources,
Inc.,
including
Covered
Officers.
It
summarizes
the
values,
principles
and
business
practices
that
guide
the
employee’s
business
conduct
and
also
provides a set of basic
principles
to
guide
officers,
directors
and
employees  regarding  the
minimum
ethical
requirements
expected
of
them.
It
supplements
the
values,
principles
and
business
conduct
identified
in
the
Code
and
other
existing
employee
policies.
 
Additionally,
the
Franklin
Templeton
Funds
have
separately
adopted
the
FTI
Personal
Investments
and
Insider
Trading
Policy
governing
personal
securities
trading
and
other
related
matters.
The
Code
for
Insider
Trading
provides
for
separate
requirements
that
apply
to
the
Covered
Officers
and
others,
and
therefore
is
not
part
of
this
Code.
 
Insofar
as
other
policies
or
procedures
of
Franklin
Resources,
Inc.,
the
Funds,
the
Funds’
adviser,
principal
underwriter,
or
other
service
providers
govern
or
purport
to
govern
the
behavior
or
activities
of
the
Covered Officers
who
are subject
to this Code, they are
superceded
by
this
Code
to
the
extent
that
they
overlap
or
conflict
with
the
provisions
of
this
Code.
Please
review these other documents or consult with
the
Legal
Department
if have questions regarding
the
applicability
of
these
policies
to
you.
 

III.
             
Covered Officers Should Handle
Ethically
Actual and
Apparent
Conflicts of
Interest

 
Overview.
A
"conflict
of
interest"
occurs
when
a
Covered
Officer's
private
interest
interferes
with
the
interests
of,
or
his
or
her
service
to,
the
FT
Funds.
For
example,
a
conflict
of
interest
would
arise
if
a
Covered
Officer,
or
a
member
of
his
family,
receives
improper
personal
benefits
as
a
result
of
apposition
with
the
FT
Funds.
 
Certain
conflicts
of
interest
arise
out
of
the
relationships
between
Covered
Officers
and
the
FT
Funds
and
already
are
subject
to
conflict
of
interest
provisions
in
the
Investment
Company
Act
of
1940
("Investment
Company
Act")
and
the
Investment
Advisers
Act
of
1940
("Investment
Advisers
Act").
For
example,
Covered
Officers
may
not
individually
engage
in
certain
transactions
(such
as
the
purchase
or
sale
of
securities
or
other
property)
with
the
FT
Funds
because
of
their
status
as
"affiliated
persons"
of
the
FT
Funds.
The
FT
Funds’
and
the
investment
advisers’
compliance
programs
and
procedures
are
designed
to
prevent,
or
identify
and
correct,
violations
of
these
provisions.
This
Code
does not,
and
is not
intended
to,
repeat
or replace
these
programs
and
procedures,
and
such
conflicts
fall
outside
of
the
parameters
of
this
Code.
 
Although
typically
not
presenting
an
opportunity
for
improper
personal
benefit,
conflicts
arise
from,
or
as
a
result
of,
the
contractual
relationship
between
the
FT
Funds,
the
investment
advisers
and
the
fund
administrator
of
which
the
Covered
Officers
are
also
officers
or
employees.
As
a
result,
this
Code
recognizes
that
the
Covered
Officers
will,
in
the
normal
course
of
their
duties
(whether
formally
for
the
FT
Funds,
for
the
adviser,
the
administrator,
or for
all
three),
be
involved
in
establishing
policies
and
implementing
decisions
that
will
have
different
effects
on
the
adviser,
administrator
and
the
FT
Funds.
The
participation
of
the
Covered
Officers
in
such
activities
is
inherent
in
the
contractual
relationship
between
the
FT
Funds,
the
adviser,
and
the
administrator
and
is
consistent
with
the
performance
by
the
Covered
Officers
of
their
duties
as
officers
of
the
FT
Funds.
Thus,
if
performed
in
conformity
with
the
provisions
of
the
Investment
Company
Act
and
the
Investment
Advisers
Act,
such
activities
will
be
deemed
to
have
been
handled
ethically.
In
addition,
it
is
recognized
by
the
FT
Funds'
Boards
of
Directors
("Boards")
that
the
Covered
Officers
may
also
be
officers
or
employees
of
one
or
more
other
investment
companies
covered
by
this
or
other
codes.
 
Other
conflicts
of
interest
are
covered
by
the
Code,
even
if
such
conflicts
of
interest
are
not
subject
to
provisions
in
the
Investment
Company
Act
and
the
Investment
Advisers
Act.
The
following
list
provides
examples
of
conflicts
of
interest
under
the
Code,
but
Covered
Officers
should
keep
in
mind
that
these
examples
are
not
exhaustive.
The
overarching
principle
is
that
the
personal
interest
of
a
Covered
Officer
should
not
be
placed
improperly
before
the
interest
of
the
FT
Funds.
 
Each
Covered
Officer
must:
·
        
Not
use
his
or
her
personal
influence
or
personal
relationships
improperly
to
influence
investment
decisions
or
financial
reporting
by
the
FT
Funds
whereby
the
Covered
Officer
would
benefit
personally
to
the
detriment
of
the
FT
Funds;
·
        
Not
cause
the
FT
Funds
to
take
action,
or
fail
to
take
action,
for
the
individual
personal
benefit
of
the
Covered
Officer
rather
than
the
benefit
the
FT
Funds;
·
        
Not
retaliate
against
any
other
Covered
Officer
or
any
employee
of
the
FT
Funds
or
their
affiliated
persons
for
reports
of
potential
violations
that
are
made
in
good
faith;
·
        
Report
at
least
annually
the
following
affiliations
or
other
relationships:
1
o
   
all
directorships
for
public
companies
and
all
companies
that
are
required
to
file
reports
with
the
SEC;
o
   
any
direct
or
indirect
business
relationship
with
any
independent
directors
of
the
FT
Funds;
o
   
any
direct
or
indirect
business
relationship
with
any
independent
public
accounting
firm
(which
are
not
related
to
the
routine
issues
related
to
the
firm’s
service
as
the
Covered
Persons
accountant);
and
o
   
any
direct
or
indirect
interest
in
any
transaction
with
any
FT
Fund
that
will
benefit
the
officer
(not
including
benefits
derived
from
the
advisory,
sub-advisory,
distribution
or
service
agreements
with
affiliates
of
Franklin
Resources).
These
reports
will
be
reviewed
by
the
Legal
Department
for
compliance
with
the
Code.
There
are
some
conflict
of
interest
situations
that
should
always
be
approved
in
writing
by
Franklin
Resources
General
Counsel
or
Deputy
General
Counsel,
if
material.
Examples
of
these
include
2
:
·
        
Service
as
a
director
on
the
board
of
any
public
or
private
Company.
 
 
 
1
Reporting
of
these
affiliations
or
other
relationships
shall
be
made
by
completing
the
annual
Directors
and
Officers
Questionnaire
and
returning
the
questionnaire
to
Franklin
Resources
Inc,
General
Counsel
or
Deputy
General
Counsel.
2
 
Any
activity
or
relationship
that
would
present
a
conflict
for
a
Covered
Officer
may
also
present
a
conflict
for
the
Covered
Officer
if
a
member
of
the
Covered
Officer's
immediate
family
engages
in
such
an
activity
or
has
such
a
relationship.
The
Cover
Person
should
also
obtain
written
approval
by
FT’s
General
Counsel
in
such
situations.
 
·
        
The
receipt
of
any
gifts
in
excess
of
$100
from
any
person,
from
any
corporation
or
association.
·
        
The
receipt
of
any
entertainment
from
any
Company
with
which
the
FT
Funds
has
current
or
prospective
business
dealings
unless
such
entertainment
is
business
related,
reasonable
in
cost,
appropriate
as
to
time
and
place,
and
not
so
frequent
as
to
raise
any
question
of
impropriety.
Notwithstanding
the
foregoing,
the
Covered
Officers
must
obtain
prior
approval
from
the
Franklin
Resources
General
Counsel
for
any
entertainment
with
a
value
in
excess
of
$1000.
·
        
Any
ownership
interest
in,
or
any
consulting
or
employment
relationship
with,
any
of
the
FT
Fund’s
service
providers,
other
than
an
investment
adviser,
principal
underwriter,
administrator
or
any
affiliated
person
thereof.
·
        
A
direct
or
indirect
financial
interest
in
commissions,
transaction
charges
or
spreads
paid
by
the
FT
Funds
for
effecting
portfolio
transactions
or
for
selling
or
redeeming
shares
other
than
an
interest
arising
from
the
Covered
Officer's
employment,
such
as
compensation
or
equity
ownership.
·
        
Franklin
Resources
General
Counsel
or
Deputy
General
Counsel
will
provide
a
report
to
the
FT
Funds
Audit
Committee
of
any
approvals
granted
at
the
next
regularly
scheduled
meeting.
 

IV.
            
Disclosure and Compliance

 
·
        
Each
Covered
Officer
should
familiarize
himself
with
the
disclosure
requirements
generally
applicable
to
the
FT
Funds;
·
        
Each
Covered
Officer
should
not
knowingly
misrepresent,
or
cause
others
to
misrepresent,
facts
about
the
FT
Funds
to
others,
whether
within
or
outside
the
FT
Funds,
including
to
the
FT
Funds’
directors
and
auditors,
and
to
governmental
regulators
and
self-regulatory
organizations;
·
        
Each
Covered
Officer
should,
to
the
extent
appropriate
within
his
or
her
area
of
responsibility,
consult
with
other
officers
and
employees
of
the
FT
Funds,
the
FT
Fund’s
adviser
and
the
administrator
with
the
goal
of
promoting
full,
fair,
accurate,
timely
and
understandable
disclosure
in
the
reports
and
documents
the
FT
Funds
file
with,
or
submit
to,
the
SEC
and
in
other
public
communications
made
by
the
FT
Funds;
and
·
        
It
is
the
responsibility
of
each
Covered
Officer
to
promote
compliance
with
the
standards
and
restrictions
imposed
by
applicable
laws,
rules
and
regulations.
 

V.
            
Reporting
and Accountability

 
Each
Covered
Officer
must:
·
        
Upon
becoming
a
covered
officer
affirm
in
writing
to
the
Board
that
he
or
she
has
received,
read,
and
understands
the
Code
(see
Exhibit
B);
·
        
Annually
thereafter
affirm
to
the
Board
that
he
has
complied
with
the
requirements
of
the
Code;
and
·
            
Notify
Franklin
Resources’
General
Counsel
or
Deputy
General
Counsel
promptly
if
he
or
she
knows
of
any
violation
of
this
Code.
Failure
to
do
so
is
itself
is
a
violation
of
this Code.
Franklin
Resources’
General
Counsel
and
Deputy
General
Counsel
are
responsible
for
applying
this
Code
to
specific
situations
in
which
questions
are
presented
under
it
and
have
the
authority
to
interpret
this
Code
in
any
particular
situation.
3
 
However,
the
Independent
Directors
of
the
respective
FT
Funds
will
consider
any
approvals
or
waivers
4
sought
by
any
Chief
Executive
Officers
of
the
Funds.
 
The
FT
Funds
will
follow
these
procedures
in
investigating
and
enforcing
this
Code:
 
·
        
Franklin
Resources
General
Counsel
or
Deputy
General
Counsel
will
take
all
appropriate
action
to
investigate
any
potential
violations
reported
to
the
Legal
Department;
·
        
If,
after
such
investigation,
the
General
Counsel
or
Deputy
General
Counsel
believes
that
no
violation
has
occurred,
The
General
Counsel
is
not
required
to
take
any
further
action;
·
        
Any
matter
that
the
General
Counsel
or
Deputy
General
Counsel
believes
is
a
violation
will
be
reported
to
the
Independent
Directors
of
the
appropriate
FT
Fund;
·
        
If
the
Independent
Directors
concur
that
a
violation
has
occurred,
it
will
inform
and
make
a
recommendation
to
the
Board
of
the
appropriate
FT
Fund
or
Funds,
which
will
consider
appropriate
action,
which
may
include
review
of,
and
appropriate
modifications
to, applicable
policies
and
procedures;
notification
to
appropriate
personnel
of
the
investment
adviser
or
its
board;
or
a
recommendation
to
dismiss
the
Covered
Officer;
·
        
The
Independent
Directors
will
be
responsible
for
granting
waivers,
as
appropriate;
and
·
        
Any
changes
to
or
waivers
of
this
Code
will,
to
the
extent
required,
are
disclosed
as
provided
by
SEC
rules.
5

VI.
            
Other Policies and Procedures

 
This
Code
shall
be
the
sole
code
of
ethics
adopted
by
the
FT
Funds
for
purposes
of
Section
406
of
the
Sarbanes-Oxley
Act
and
the
rules
and
forms
applicable
to
registered
investment
companies
thereunder.
Insofar
as
other
policies
or
procedures
of
the
FT
Funds,
the
FT
Funds'
advisers,
principal
underwriter,
or
other
service
providers
govern
or
purport
to
govern
the
behavior
or
activities
of
the
Covered
Officers
who
are
subject
to
this
Code,
they
are
superseded
by
this
Code
to
the
extent
that
they
overlap
or
conflict
with
the
provisions
of
this
Code.
The
FTI
Personal
Investments
and
Insider
Trading
Policy,
adopted
by
the
FT
Funds,
FT
investment
advisers
and
FT
Fund’s
principal
underwriter
pursuant
to
Rule
17j-1
under
the
Investment
Company
Act,
the
Code
of
Ethics
and
Business
Conduct
and
more
detailed
policies
and
procedures
set
forth
in
FT’s
Employee
Handbook
are
separate
requirements
applying
to
the
Covered
Officers
and
others,
and
are
not
part
of
this
Code.
 
 
 
 
 
3
Franklin
Resources
General
Counsel
and
Deputy
General
Counsel
are
authorized
to
consult,
as
appropriate,
with
members
of
the
Audit
Committee,
counsel
to
the
FT
Funds
and
counsel
to
the
Independent
Directors,
and
are
encouraged
to
do
so.
4
Item
2
of
Form
N-CSR
defines
"waiver"
as
"the
approval
by
the
registrant
of
a
material
departure
from
a
provision
of
the
code
of
ethics"
and
"implicit
waiver,"
which
must
also
be
disclosed,
as
"the
registrant's
failure
to
take
action
within
a
reasonable
period
of
time
regarding
a
material
departure
from
a
provision
of
the
code
of
ethics
that
has
been
made
known
to
an
executive
officer"
of
the
registrant.
See
Part
X.
5
 
See
Part
X.

VII.
             
Amendments

 
Any
amendments
to
this
Code,
other
than
amendments
to
Exhibit
A,
must
be
approved
or
ratified
by
a
majority
vote
of
the
FT
Funds’
Board
including
a
majority
of
independent
directors.

VIII.
             
Confidentiality

 
All
reports
and
records
prepared
or
maintained
pursuant
to
this
Code
will
be
considered
confidential
and
shall
be
maintained
and
protected
accordingly.
Except
as
otherwise
required
by
law or
this Code,
such matters
shall
not
be disclosed
to anyone
other than
the FT
Funds’ Board
and
their
counsel.

IX.
            
Internal Use

 
The
Code
is
intended
solely
for
the
internal
use
by
the
FT
Funds
and
does
not
constitute
an
admission,
by
or
on
behalf
of
any
FT
Funds,
as
to
any
fact,
circumstance,
or
legal
conclusion.
 
X.
                 
Disclosure
on
Form
N-CSR
 
Item
2
of
Form
N-CSR
requires
a
registered
management
investment
company
to
disclose
annually
whether,
as
of
the
end
of
the
period
covered
by
the
report,
it
has
adopted
a
code
of
ethics
that
applies
to
the
registrant's
principal
executive
officer,
principal
financial
officer,
principal
accounting
officer
or
controller,
or
persons
performing
similar
functions,
regardless
of
whether
these
officers
are
employed
by
the
registrant
or
a
third
party.
If
the
registrant
has
not
adopted
such
a
code
of
ethics,
it
must
explain
why
it
has
not
done
so.
The
registrant
must
also:
(1)
file
with
the
SEC
a
copy
of
the
code
as
an
exhibit
to
its
annual
report;
(2)
post
the
text
of
the
code
on
its
Internet
website
and
disclose,
in
its
most
recent
report
on
Form
N-CSR,
its
Internet
address
and
the
fact
that
it
has
posted
the
code
on
its
Internet
website;
or
(3)
undertake
in
its
most
recent
report
on
Form
N-CSR
to
provide
to
any
person
without
charge,
upon
request,
a
copy
of
the
code
and
explain
the
manner
in
which
such
request
may
be
made.
Disclosure
is
also
required
of
amendments
to,
or
waivers
(including
implicit
waivers)
from,
a
provision
of
the
code
in
the
registrant's
annual
report
on
Form
N-CSR
or
on
its
website.
If
the
registrant
intends
to
satisfy
the
requirement
to
disclose
amendments
and
waivers
by
posting
such
information
on
its
website,
it
will
be
required
to
disclose
its
Internet
address
and
this
intention.
The
Legal
Department
shall
be
responsible
for
ensuring
that:
·
        
a
copy
of
the
Code
is
filed
with
the
SEC
as
an
exhibit
to
each
Fund’s
annual
report;
and
·
        
any
amendments
to,
or
waivers
(including
implicit
waivers)
from,
a
provision
of
the
Code
is
disclosed
in
the
registrant's
annual
report
on
Form
N-CSR.
In
the
event
that
the
foregoing
disclosure
is
omitted
or
is
determined
to
be
incorrect,
the
Legal
Department
shall
promptly
file
such
information
with
the
SEC
as
an
amendment
to
Form
N-CSR.
In
such
an
event,
the
Fund
Chief
Compliance
Officer
shall
review
the
Code
and
propose
such
changes
to
the
Code
as
are
necessary
or
appropriate
to
prevent
reoccurrences.

EXHIBIT
A

 
Persons
Covered
by
the
Franklin
Templeton
Funds
Code
of
Ethics
December
2018
 
 
 

FRANKLIN GROUP
OF FUNDS

 
Edward
Perks                           President
and
Chief Executive Officer
–
Investment
Management
Rupert H. Johnson, Jr.                                            Chairman
of the Board and
Vice President– Investment
Management
Don
Taylor                                                President
and
Chief Executive Officer
–
Investment
Management
Sonal
Desai)                             President
and
Chief
Executive
Officer
–
Investment
Management
Matthew Hinkle                          Chief Executive Officer
–
Finance
and Administration
Gaston R. Gardey                     Chief Financial Officer and Chief Accounting Officer and
Treasurer
 
 
 

FRANKLIN MUTUAL
SERIES FUNDS

 
Peter Langerman                       Chief Executive Officer
–
Investment Management
Matthew Hinkle                                                Chief Executive Officer
–
Finance
and Administration
Robert G. Kubilis                                                Chief Financial Officer and Chief Accounting Officer
 
 

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

 
Mat S. Gulley                            Chief Executive Officer
–
Investment
Management
Matthew Hinkle                                                Chief Executive
Officer
–
Finance
and Administration
Robert G. Kubilis                                      Chief Financial Officer and Chief Accounting
Officer
 
 
 

TEMPLETON
GROUP
OF FUNDS

 
Manraj S. Sekhon                      President and
Chief Executive Officer
–
Investment
Management
Michael
Hasenstab,
Ph.D.
President and Chief Executive Officer
–
Investment
Management
Norman
Boersma                                                   President
and
Chief Executive Officer
–
Investment
Management
Matthew Hinkle                                                Chief Executive Officer
–
Finance
and Administration
Robert G. Kubilis                       Chief Financial Officer, Chief Accounting Officer and Treasurer
 

Exhibit
B
ACKNOWLEDGMENT FORM

 

Franklin
Templeton
Funds
Code
of
Ethics

For
Principal
Executives
and
Senior
Financial
Officers
 
 
Instructions:
1.
     
Complete
all
sections
of
this
form.
2.
     
Print
the
completed
form,
sign,
and
date.
3.
 
Submit
completed
form
to
FT’s
General
Counsel
c/o
Code
of
Ethics
Administration
within
10
days
of
becoming
a
Covered
Officer
and
by
February
15
th
of
each
subsequent
year.
 
Inter-office
mail:
Code
of
Ethics
Administration,
Global
Compliance
SM-920/2
Fax:                       
(650)
312-5646
E-mail:                     
Code
of
Ethics
Inquiries
&
Requests
(internal
address);
lpreclear@franklintempleton.com
(external
address)
 
 
Covered
Officer’s
Name:
 
Title:
 
Department:
 
Location:
 
Certification
for
Year
Ending:
 
 
 
To:   
 
Franklin
Resources
General
Counsel,
Legal
Department
 
I
acknowledge
receiving,
reading
and
understanding
the
Franklin
Templeton
Fund’s
Code
of
Ethics
for
Principal
Executive
Officers
and
Senior
Financial
Officers
(the
“Code”).
I
will
comply
fully
with
all
provisions
of
the
Code
to
the
extent
they
apply
to
me
during
the
period
of
my
employment.
I
further
understand
and
acknowledge
that
any
violation
of
the
Code
may
subject
me
to
disciplinary
action,
including
termination
of
employment.
 
 
 
 
 
                                                                                                                                                                                                                                                                                                           
Signature                                                               Date signed