Davis Tax-Free High Income Fund, Inc.
Supplement dated May 1, 1996
to the Prospectus
dated February 1, 1996
Effective May 1, 1996 the following paragraph replaces paragraph 2
under "Adviser, Sub-Adviser and Distributor" on page 11:
"The Fund pays the Adviser a fee at the annual rate of 0.65% on the
first $250 million of average net assets, 0.60% on the next $250 million of
average net assets and 0.55% on average net assets over $500 million.
This fee schedule is somewhat higher than that of most municipal bond
funds. The Fund also reimburses the Adviser for its costs of providing
certain accounting and financial reporting, shareholder services and
compliance with state securities laws.
