<PAGE> PAGE 1
000 B000000 02/29/96
000 C000000 0000201670
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0.a
000 J000000 A
001 A000000 DMC TAX-FREE INCOME TRUST - PENNSYLVANIA
001 B000000 811-2715
001 C000000 2152552926
002 A000000 2005 MARKET STREET
002 B000000 PHILADELPHIA
002 C000000 PA
002 D010000 19103
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 N
007 B000000 0
022 A000001 DILLON, READ & CO., INC.
022 B000001 13-1939216
022 C000001 86217
022 D000001 55376
022 A000002 LEHMAN BROTHERS, INC.
022 B000002 13-2518466
022 C000002 48788
022 D000002 25613
022 A000003 PAINEWEBBER, INC.
022 B000003 22-2803371
022 C000003 45936
022 D000003 17534
022 A000004 MORGAN STANLEY & CO., INC.
022 B000004 13-2655998
022 C000004 30321
022 D000004 4775
022 A000005 PITTSBURGH NATIONAL BANK
022 B000005 25-1471636
022 C000005 15749
022 D000005 17793
022 A000006 DOLPHIN & BRADBURY, INC.
022 B000006 23-2405746
022 C000006 26240
022 D000006 0
022 A000007 GOLDMAN SACHS & CO.
022 B000007 13-5108880
022 C000007 3880
022 D000007 21604
022 A000008 WHEAT FIRST BUTCHER SINGER, INC.
<PAGE> PAGE 2
022 B000008 54-0796506
022 C000008 7340
022 D000008 15383
022 A000009 BEAR, STEARNS & CO., INC.
022 B000009 13-3299429
022 C000009 6265
022 D000009 14278
022 A000010 SMITH BARNEY, HARRIS UPHAM & CO.
022 B000010 13-1912900
022 C000010 3269
022 D000010 16404
023 C000000 299009
023 D000000 284623
027 000000 Y
028 A010000 3363
028 A020000 2730
028 A030000 0
028 A040000 7166
028 B010000 5447
028 B020000 2805
028 B030000 0
028 B040000 5773
028 C010000 5481
028 C020000 6845
028 C030000 0
028 C040000 9566
028 D010000 4642
028 D020000 2796
028 D030000 0
028 D040000 9279
028 E010000 6086
028 E020000 2809
028 E030000 0
028 E040000 7821
028 F010000 4833
028 F020000 2613
028 F030000 0
028 F040000 9413
028 G010000 29852
028 G020000 20598
028 G030000 0
028 G040000 49018
028 H000000 25082
029 000000 Y
030 A000000 1812
030 B000000 4.75
030 C000000 0.00
031 A000000 304
031 B000000 0
032 000000 1508
033 000000 0
<PAGE> PAGE 3
062 A000000 Y
062 B000000 0.0
062 C000000 0.0
062 D000000 0.0
062 E000000 0.2
062 F000000 0.0
062 G000000 0.0
062 H000000 0.0
062 I000000 0.0
062 J000000 0.0
062 K000000 0.0
062 L000000 0.0
062 M000000 0.0
062 N000000 0.0
062 O000000 98.7
062 P000000 0.0
062 Q000000 0.0
062 R000000 0.0
063 A000000 0
063 B000000 21.6
070 A010000 Y
070 A020000 Y
070 B010000 N
070 B020000 N
070 C010000 N
070 C020000 N
070 D010000 N
070 D020000 N
070 E010000 N
070 E020000 N
070 F010000 N
070 F020000 N
070 G010000 N
070 G020000 N
070 H010000 N
070 H020000 N
070 I010000 N
070 I020000 N
070 J010000 Y
070 J020000 N
070 K010000 N
070 K020000 N
070 L010000 N
070 L020000 N
070 M010000 N
070 M020000 N
070 N010000 N
070 N020000 N
070 O010000 Y
070 O020000 N
070 P010000 Y
<PAGE> PAGE 4
070 P020000 N
070 Q010000 N
070 Q020000 N
070 R010000 N
070 R020000 N
071 A000000 254781
071 B000000 253521
071 C000000 1003830
071 D000000 25
072 A000000 12
072 B000000 66660
072 C000000 0
072 D000000 0
072 E000000 0
072 F000000 5877
072 G000000 0
072 H000000 250
072 I000000 646
072 J000000 3
072 K000000 53
072 L000000 40
072 M000000 23
072 N000000 6
072 O000000 0
072 P000000 0
072 Q000000 0
072 R000000 29
072 S000000 20
072 T000000 2078
072 U000000 0
072 V000000 0
072 W000000 222
072 X000000 9247
072 Y000000 0
072 Z000000 57413
072AA000000 13552
072BB000000 24
072CC010000 26543
072CC020000 0
072DD010000 56634
072DD020000 779
072EE000000 6026
073 A010000 0.0000
073 A020000 0.0000
073 B000000 0.0000
073 C000000 0.0000
074 A000000 93
074 B000000 0
074 C000000 2200
074 D000000 1010855
074 E000000 0
<PAGE> PAGE 5
074 F000000 0
074 G000000 0
074 H000000 0
074 I000000 0
074 J000000 0
074 K000000 0
074 L000000 16313
074 M000000 9
074 N000000 1029470
074 O000000 2200
074 P000000 103
074 Q000000 0
074 R010000 0
074 R020000 0
074 R030000 0
074 R040000 3295
074 S000000 0
074 T000000 1023872
074 U010000 118525
074 U020000 2480
074 V010000 0.00
074 V020000 0.00
074 W000000 0.0000
074 X000000 24306
074 Y000000 0
075 A000000 0
075 B000000 1015834
076 000000 0.00
077 A000000 Y
077 B000000 Y
077 Q010000 Y
080 A000000 ICI MUTUAL INSURANCE COMPANY, INC.
080 B000000 GULF INSURANCE COMPANY
080 C000000 40000
081 A000000 Y
081 B000000 47
082 A000000 Y
082 B000000 150
083 A000000 N
083 B000000 0
084 A000000 N
084 B000000 0
085 A000000 Y
085 B000000 N
SIGNATURE ROSEMARY E. MILNER
TITLE VICE PRESIDENT
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000201670
<NAME> DMC TAX-FREE INCOME TRUST - PENNSYLVANIA
<SERIES>
<NUMBER> 001
<NAME> TAX-FREE PENNSYLVANIA FUND A CLASS
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> FEB-29-1996
<PERIOD-END> FEB-29-1996
<INVESTMENTS-AT-COST> 948,450,788
<INVESTMENTS-AT-VALUE> 1,013,055,037
<RECEIVABLES> 16,312,635
<ASSETS-OTHER> 100,361
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1,029,468,033
<PAYABLE-FOR-SECURITIES> 2,200,000
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 3,395,770
<TOTAL-LIABILITIES> 5,595,770
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 954,619,522
<SHARES-COMMON-STOCK> 118,524,652
<SHARES-COMMON-PRIOR> 119,368,970
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 4,648,492
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 64,604,249
<NET-ASSETS> 1,002,888,383
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 66,659,696
<OTHER-INCOME> 0
<EXPENSES-NET> 9,246,640
<NET-INVESTMENT-INCOME> 57,413,056
<REALIZED-GAINS-CURRENT> 13,527,491
<APPREC-INCREASE-CURRENT> 26,543,167
<NET-CHANGE-FROM-OPS> 97,483,714
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 56,634,466
<DISTRIBUTIONS-OF-GAINS> 5,913,829
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 7,115,807
<NUMBER-OF-SHARES-REDEEMED> 12,403,681
<SHARES-REINVESTED> 4,443,556
<NET-CHANGE-IN-ASSETS> 37,320,758
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (2,852,904)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 5,900,044
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 9,246,640
<AVERAGE-NET-ASSETS> 999,391,686
<PER-SHARE-NAV-BEGIN> 8.180
<PER-SHARE-NII> 0.476
<PER-SHARE-GAIN-APPREC> 0.330
<PER-SHARE-DIVIDEND> 0.476
<PER-SHARE-DISTRIBUTIONS> 0.050
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 8.460
<EXPENSE-RATIO> 0.90
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000201670
<NAME> DMC TAX-FREE INCOME TRUST - PENNSYLVANIA
<SERIES>
<NUMBER> 002
<NAME> TAX-FREE PENNSYLVANIA FUND B CLASS
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> FEB-29-1996
<PERIOD-END> FEB-29-1996
<INVESTMENTS-AT-COST> 948,450,788
<INVESTMENTS-AT-VALUE> 1,013,055,037
<RECEIVABLES> 16,312,635
<ASSETS-OTHER> 100,361
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1,029,468,033
<PAYABLE-FOR-SECURITIES> 2,200,000
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 3,395,770
<TOTAL-LIABILITIES> 5,595,770
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 954,619,522
<SHARES-COMMON-STOCK> 2,465,368
<SHARES-COMMON-PRIOR> 1,251,835
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 4,648,492
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 64,604,249
<NET-ASSETS> 20,860,549
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 66,659,696
<OTHER-INCOME> 0
<EXPENSES-NET> 9,246,640
<NET-INVESTMENT-INCOME> 57,413,056
<REALIZED-GAINS-CURRENT> 13,527,491
<APPREC-INCREASE-CURRENT> 26,543,167
<NET-CHANGE-FROM-OPS> 97,483,714
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 777,666
<DISTRIBUTIONS-OF-GAINS> 112,266
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,313,984
<NUMBER-OF-SHARES-REDEEMED> 170,202
<SHARES-REINVESTED> 69,751
<NET-CHANGE-IN-ASSETS> 37,320,758
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (2,852,904)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 5,900,044
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 9,246,640
<AVERAGE-NET-ASSETS> 16,422,657
<PER-SHARE-NAV-BEGIN> 8.180
<PER-SHARE-NII> 0.408
<PER-SHARE-GAIN-APPREC> 0.330
<PER-SHARE-DIVIDEND> 0.408
<PER-SHARE-DISTRIBUTIONS> 0.050
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 8.460
<EXPENSE-RATIO> 1.71
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000201670
<NAME> DMC TAX-FREE INCOME TRUST - PENNSYLVANIA
<SERIES>
<NUMBER> 003
<NAME> TAX-FREE PENNSYLVANIA FUND C CLASS
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> FEB-29-1996
<PERIOD-END> FEB-29-1996
<INVESTMENTS-AT-COST> 948,450,788
<INVESTMENTS-AT-VALUE> 1,013,055,037
<RECEIVABLES> 16,312,635
<ASSETS-OTHER> 100,361
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1,029,468,033
<PAYABLE-FOR-SECURITIES> 2,200,000
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 3,395,770
<TOTAL-LIABILITIES> 5,595,770
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 954,619,522
<SHARES-COMMON-STOCK> 14,576
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 4,648,492
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 64,604,249
<NET-ASSETS> 123,331
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 66,659,696
<OTHER-INCOME> 0
<EXPENSES-NET> 9,246,640
<NET-INVESTMENT-INCOME> 57,413,056
<REALIZED-GAINS-CURRENT> 13,527,491
<APPREC-INCREASE-CURRENT> 26,543,167
<NET-CHANGE-FROM-OPS> 97,483,714
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 924
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 14,484
<NUMBER-OF-SHARES-REDEEMED> 12
<SHARES-REINVESTED> 104
<NET-CHANGE-IN-ASSETS> 37,320,758
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (2,852,904)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 5,900,044
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 9,246,640
<AVERAGE-NET-ASSETS> 77,659
<PER-SHARE-NAV-BEGIN> 8.510
<PER-SHARE-NII> 0.102
<PER-SHARE-GAIN-APPREC> 0.000
<PER-SHARE-DIVIDEND> 0.102
<PER-SHARE-DISTRIBUTIONS> 0.050
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 8.460
<EXPENSE-RATIO> 1.71
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
Supplementary Report of Independent Auditors
To the Trustees and Beneficial Shareholders
DMC Tax-Free Income Trust - Pennsylvania
In planning and performing our audit of the financial statements of
DMC Tax-Free Income Trust - Pennsylvania (the Trust) for the year
ended February 29, 1996, we considered the Trusts internal control
structure, including procedures for safeguarding securities, in
order to determine our auditing procedures for the purpose of
expressing our opinion on the financial statements and to comply
with the requirements of Form N-SAR, not to provide assurance on
the internal control structure.
The management of the Trust is responsible for establishing and
maintaining an internal control structure. In fulfilling this
responsibility, estimates and judgments by management are required
to assess the expected benefits and related costs of internal
control structure policies and procedures. Two of the objectives of
an internal control structure are to provide management with
reasonable, but not absolute, assurance that assets are safeguarded
against loss from unauthorized use or disposition and that
transactions are executed in accordance with managements
authorization and recorded properly to permit preparation of
financial statements in conformity with generally accepted
accounting principles.
Because of inherent limitations in any internal control structure,
errors or irregularities may occur and not be detected. Also,
projection of any evaluation of the structure to future periods is
subject to the risk that it may become inadequate because of
changes in conditions or that the effectiveness of the design and
operation may deteriorate.
Our consideration of the internal control structure would not
necessarily disclose all matters in the internal control structure
that might be material weaknesses under standards established by
the American Institute of Certified Public Accountants. A material
weakness is a condition in which the design or operation of the
specific internal control structure elements does not reduce to a
relatively low level the risk that errors or irregularities in
amounts that would be material in relation to the financial
statements being audited may occur and not be detected within a
timely period by employees in the normal course of performing their
assigned functions.
However, we noted no matters involving the internal control
structure, including procedures for safeguarding securities, that
we consider to be material weaknesses as defined above as of
February 29, 1996.
This report is intended solely for the information and use of
management and the Securities and Exchange Commission.
Philadelphia, Pennsylvania
April 2, 1996