SUPPLEMENT DATED JUNE 15, 1995
TO THE PROSPECTUS FOR
FRANKLIN TAX-FREE TRUST
dated May 1, 1995
Franklin Alabama Tax-Free Income Fund
Franklin Florida Tax-Free Income Fund
Franklin Georgia Tax-Free Income Fund
Franklin Kentucky 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 Texas Tax-Free Income Fund
Franklin Virginia Tax-Free Income Fund
I. Expense Table
<TABLE>
In order to revise the Alabama Fund Class II column and the
Virginia Fund Class II column, please substitute the following.
<CAPTION>
ALABAMA VIRGINIA
FUND FUND
Class II Class II
--------------------
<S> <C> <C>
Shareholder Transaction Expenses
+Maximum Sales Charge Imposed
on Purchases (as a percentage
of offering price) . . . . . 1.00% 1.00%
++Deferred Sales Charge . . . 1.00% 1.00%
Annual Fund Operating Expenses
(as a percentage of average
net assets)
Management Fees . . . . . . . . 0.57% 0.55%
**Maximum 12b-1 Fees . . . . . 0.65% 0.65%
Other Expenses:
Shareholder Servicing Costs . 0.02% 0.02%
Reports to Shareholders . . . 0.03% 0.03%
Other . . . . . . . . . . . . 0.04% 0.03%
----- -----
+++Total Other Expenses . . . . 0.09 0.08%
----- -----
**Total Fund Operating Expenses 1.31% 1.28%
===== =====
</TABLE>
<TABLE>
<CAPTION>
II. Financial Highlights
In order to reflect the "Net Assets at End of Period" figures
rounded to the nearest thousandth, the following replaces
the entire section.
PER SHARE OPERATING PERFORMANCE
PERIOD NET ASSET NET REALIZED DISTRIBUTIONS NET ASSET
ENDED VALUE NET &UNREALIZED TOTAL FROM FROM NET DISTRIBUTIONS VALUE
FEBRUARY BEGINNING INVESTMENT GAINS(LOSSES) INVESTMENT INVESTMENT FROM CAPITAL TOTAL AT END TOTAL
28 OF PERIOD INCOME ON SECURITIES OPERATIONS INCOME GAINS DISTRIBUTIONS OF PERIOD RETURN+
- ----- --------- ------ ------------- ---------- ------ ----- ------------- --------- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
FRANKLIN ALABAMA TAX-FREE INCOME FUND:
1988(1) $10.00 $0.44 $ 0.210 $0.650 $(0.110) $ -- $(0.110) $10.54 11.26%*
1989 10.54 0.79 0.005 0.795 (0.723) (0.022) (0.745) 10.59 7.59
1990 10.59 0.75 0.168 0.918 (0.768) -- (0.768) 10.74 8.61
1991 10.74 0.71 0.068 0.778 (0.768) -- (0.768) 10.75 7.27
1992 10.75 0.66 0.346 1.006 (0.756) -- (0.756) 11.00 9.51
1993 11.00 0.68 0.714 1.394 (0.684) -- (0.684) 11.71 12.84
1994 11.71 0.66 0.094 0.754 (0.664) -- (0.664) 11.80 6.35
1995 11.80 0.66 (0.500) 0.160 (0.650) -- (0.650) 11.31 1.54
FRANKLIN FLORIDA TAX-FREE INCOME FUND:
1988(1) 10.00 0.46 0.333 0.793 (0.183) -- (0.183) 10.61 14.36*
1989 10.61 0.81 (0.041) 0.769 (0.781) (0.008) (0.789) 10.59 7.28
1990 10.59 0.73 0.226 0.956 (0.816) -- (0.816) 10.73 8.98
1991 10.73 0.73 0.091 0.821 (0.801) -- (0.801) 10.75 7.69
1992 10.75 0.71 0.348 1.058 (0.768) -- (0.768) 11.04 10.02
1993 11.04 0.71 0.647 1.357 (0.717) -- (0.717) 11.68 12.45
1994 11.68 0.70 0.086 0.786 (0.696) -- (0.696) 11.77 6.65
1995 11.77 0.69 (0.436) 0.254 (0.674) -- (0.674) 11.35 2.36
FRANKLIN GEORGIA TAX-FREE INCOME FUND:
1988(1) 10.00 0.44 0.230 0.670 (0.120) -- (0.120) 10.55 11.46*
1989 10.55 0.80 (0.034) 0.766 (0.720) (0.006) (0.726) 10.59 7.32
1990 10.59 0.79 0.264 1.054 (0.744) -- (0.744) 10.90 9.94
1991 10.90 0.72 0.098 0.818 (0.778) -- (0.778) 10.94 7.53
1992 10.94 0.65 0.349 0.999 (0.759) -- (0.759) 11.18 9.32
1993 11.18 0.68 0.658 1.338 (0.668) -- (0.668) 11.85 12.09
1994 11.85 0.66 0.154 0.814 (0.664) -- (0.664) 12.00 6.77
1995 12.00 0.66 (0.458) 0.202 (0.662) -- (0.662) 11.54 1.87
FRANKLIN KENTUCKY TAX-FREE INCOME FUND:
1992(3) 10.00 0.15 0.164 0.314 (0.014) -- (0.014) 10.30 8.37*
1993 10.30 0.57 0.832 1.402 (0.652) -- (0.652) 11.05 13.81
1994 11.05 0.63 0.164 0.794 (0.664) -- (0.664) 11.18 7.07
1995 11.18 0.61 (0.625) (0.015) (0.625) -- (0.625) 10.54 0.11
FRANKLIN LOUISIANA TAX-FREE INCOME FUND:
1988(1) 10.00 0.46 0.136 0.596 (0.186) -- (0.186) 10.41 10.22*
1989 10.41 0.78 (0.028) 0.752 (0.772) -- (0.772) 10.39 7.27
1990 10.39 0.78 0.202 0.982 (0.792) -- (0.792) 10.58 9.41
1991 10.58 0.71 0.182 0.892 (0.792) -- (0.792) 10.68 8.50
1992 10.68 0.67 0.326 0.996 (0.776) -- (0.776) 10.90 9.49
1993 10.90 0.69 0.668 1.358 (0.688) -- (0.688) 11.57 12.61
1994 11.57 0.67 (0.005) 0.665 (0.675) -- (0.675) 11.56 5.63
1995 11.56 0.66 (0.549) 0.111 (0.641) -- (0.641) 11.03 1.14
RATIOS/SUPPLEMENTAL DATA
NET ASSETS RATIO OF RATIO OF
AT END EXPENSES TO NET INCOME PORTFOLIO
OF PERIOD AVERAGE TO AVERAGE TURNOVER
(in 000's) NET ASSETS** NET ASSETS RATE
--------- ------------ ---------- ----
</TABLE>
<TABLE>
<CAPTION>
FRANKLIN ALABAMA TAX-FREE INCOME FUND:
<S> <C> <C> <C> <C>
1988(1) $2,472 -- % 5.64%* 54.25%
1989 6,079 -- 7.33 12.70
1990 21,685 0.42% 6.69 4.97
1991 50,182 0.70 6.45 28.36
1992 96,254 0.71 6.21 1.21
1993 144,480 0.68 6.04 11.27
1994 178,414 0.64 5.62 14.87
1995 170,051 0.72 5.88 19.85
FRANKLIN FLORIDA TAX-FREE INCOME FUND:
1988(1) 2,411 -- 6.22* 40.02
1989 33,752 0.24 6.42 8.64
1990 302,488 0.66 6.40 8.50
1991 605,720 0.57 6.76 10.80
1992 886,110 0.54 6.60 16.69
1993 1,164,827 0.54 6.30 11.72
1994 1,361,583 0.52 5.90 11.99
1995 1,265,018 0.59 6.15 14.34
FRANKLIN GEORGIA TAX-FREE INCOME FUND:
1988(1) 1,780 -- 5.98* 22.93
1989 5,640 -- 7.31 12.23
1990 13,877 0.09 7.07 14.43
1991 32,011 0.56 6.53 1.20
1992 68,546 0.72 6.11 6.18
1993 91,017 0.71 5.91 17.10
1994 120,882 0.69 5.48 16.75
1995 116,771 0.76 5.76 36.17
FRANKLIN KENTUCKY TAX-FREE INCOME FUND:
1992(3) 3,032 -- 3.52* 53.90
1993 11,678 -- 6.11 18.41
1994 28,057 -- 5.73 13.22
1995 32,831 0.29 5.94 32.92
FRANKLIN LOUISIANA TAX-FREE INCOME FUND:
1988(1) 1,247 -- 6.21* 18.12
1989 4,257 -- 7.33 5.91
1990 17,696 0.04 7.10 16.65
1991 35,862 0.56 6.60 0.76
1992 72,923 0.70 6.33 10.51
1993 95,368 0.70 6.18 23.37
1994 115,971 0.68 5.70 17.63
1995 104,980 0.75 5.98 32.28
PER SHARE OPERATING PERFORMANCE
NET ASSET NET REALIZED DISTRIBUTIONS NET ASSET
VALUE NET & UNREALIZED TOTAL FROM FROM NET DISTRIBUTIONS VALUE
PERIOD BEGINNING INVESTMENT GAINS(LOSSES) INVESTMENT INVESTMENT FROM CAPITAL TOTAL AT END TOTAL
ENDED OF PERIOD INCOME ON SECURITIES OPERATIONS INCOME GAINS DISTRIBUTIONS OF PERIOD RETURN+
- ----- --------- ------ ------------- ---------- ------ ----- ------------- --------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
FRANKLIN MARYLAND TAX-FREE INCOME FUND:
1989(2) $10.00 $0.18 $(0.054) $0.126 $(0.056) $ -- $(0.056) $10.07 2.98%*
1990 10.07 0.72 0.192 0.912 (0.672) -- (0.672) 10.31 9.01
1991 10.31 0.68 0.096 0.776 (0.716) -- (0.716) 10.37 7.57
1992 10.37 0.64 0.300 0.940 (0.710) -- (0.710) 10.60 9.21
1993 10.60 0.65 0.672 1.322 (0.652) -- (0.652) 11.27 12.64
1994 11.27 0.64 0.092 0.732 (0.642) -- (0.642) 11.36 6.40
1995 11.36 0.63 (0.453) 0.177 (0.617) -- (0.617) 10.92 1.78
FRANKLIN MISSOURI TAX-FREE INCOME FUND:
1988(1) 10.00 0.46 0.058 0.518 (0.168) -- (0.168) 10.35 8.26*
1989 10.35 0.78 0.017 0.797 (0.707) -- (0.707) 10.44 7.74
1990 10.44 0.74 0.198 0.938 (0.738) -- (0.738) 10.64 8.94
1991 10.64 0.69 0.154 0.844 (0.744) -- (0.744) 10.74 7.96
1992 10.74 0.65 0.409 1.059 (0.729) -- (0.729) 11.07 10.04
1993 11.07 0.68 0.676 1.356 (0.676) -- (0.676) 11.75 12.40
1994 11.75 0.66 0.206 0.866 (0.676) -- (0.676) 11.94 7.29
1995 11.94 0.65 (0.501) 0.149 (0.649) -- (.649) 11.44 1.44
FRANKLIN NORTH CAROLINA TAX-FREE INCOME FUND:
1988(1) 10.00 0.43 0.206 0.636 (0.176) -- (0.176) 10.46 2.28*
1989 10.46 0.77 0.056 0.826 (0.715) (0.021) (0.736) 10.55 7.98
1990 10.55 0.74 0.221 0.961 (0.720) (0.001) (0.721) 10.79 9.06
1991 10.79 0.70 0.124 0.824 (0.742) (0.012) (0.754) 10.86 7.66
1992 10.86 0.64 0.352 0.992 (0.732) -- (0.732) 11.12 9.28
1993 11.12 0.67 0.754 1.424 (0.664) -- (0.664) 11.88 12.97
1994 11.88 0.65 0.054 0.704 (0.664) -- (0.664) 11.92 5.81
1995 11.92 0.65 (0.550) 0.10 (0.650) -- (0.650) 11.37 1.06
FRANKLIN TEXAS TAX-FREE INCOME FUND:
1988(1) 10.00 0.50 0.255 0.755 (0.195) -- (0.195) 10.56 12.72*
1989 10.56 0.78 0.044 0.824 (0.794) -- (0.794) 10.59 7.88
1990 10.59 0.84 0.114 0.954 (0.804) -- (0.804) 10.74 8.95
1991 10.74 0.73 0.104 0.834 (0.804) -- (0.804) 10.77 7.81
1992 10.77 0.67 0.370 1.040 (0.780) -- (0.780) 11.03 9.84
1993 11.03 0.69 0.661 1.351 (0.691) -- (0.691) 11.69 12.41
1994 11.69 0.69 0.032 0.722 (0.692) -- (0.692) 11.72 6.09
1995 11.72 0.68 (0.487) 0.193 (0.663) -- (0.663) 11.25 1.80
FRANKLIN VIRGINIA TAX-FREE INCOME FUND:
1988(1) 10.00 0.44 0.199 0.639 (0.189) -- (0.189) 10.45 11.90*
1989 10.45 0.77 (0.034) 0.736 (0.756) -- (0.756) 10.43 7.09
1990 10.43 0.73 0.226 0.956 (0.756) -- (0.756) 10.63 9.12
1991 10.63 0.69 0.136 0.826 (0.756) -- (0.756) 10.70 7.82
1992 10.70 0.66 0.362 1.022 (0.742) -- (0.742) 10.98 9.71
1993 10.98 0.67 0.704 1.374 (0.664) -- (0.664) 11.69 12.67
1994 11.69 0.67 0.136 0.806 (0.676) -- (0.676) 11.82 6.80
1995 11.82 0.66 (0.499) 0.161 (0.651) -- (0.651) 11.33 1.56
RATIOS/SUPPLEMENTAL DATA
NET ASSETS RATIO OF RATIO OF
AT END EXPENSES TO NET INCOME PORTFOLIO
OF PERIOD AVERAGE TO AVERAGE TURNOVER
(in 000's) NET ASSETS** NET ASSETS RATE
--------- ------------ ---------- ----
FRANKLIN MARYLAND TAX-FREE INCOME FUND:
<S> <C> <C> <C> <C>
1989(2) $ 3,313 -- % 4.26%* 11.78%
1990 14,004 0.07 6.84 6.03
1991 33,421 0.54 6.50 12.14
1992 71,538 0.71 6.15 16.65
1993 115,873 0.71 6.00 14.73
1994 156,683 0.66 5.58 18.38
1995 153,145 0.73 5.86 20.30
FRANKLIN MISSOURI TAX-FREE INCOME FUND:
1988(1) 2,060 -- 6.27* 28.32
1989 7,996 -- 7.30 7.15
1990 28,479 0.40 6.66 8.69
1991 55,560 0.72 6.42 40.08
1992 110,940 0.71 6.21 16.40
1993 164,122 0.67 6.03 10.28
1994 228,149 0.64 5.55 11.02
1995 227,442 0.70 5.75 19.84
FRANKLIN NORTH CAROLINA TAX-FREE INCOME FUND:
1988(1) 1,650 -- 5.89* 10.34
1989 10,346 -- 7.09 12.35
1990 24,746 0.50 6.68 11.80
1991 50,328 0.74 6.37 7.99
1992 106,960 0.71 6.03 3.16
1993 156,517 0.67 5.86 8.48
1994 215,540 0.63 5.44 3.86
1995 216,263 0.70 5.75 25.05
FRANKLIN TEXAS TAX-FREE INCOME FUND:
1988(1) 1,141 -- 6.61* 41.50
1989 2,356 -- 7.65 6.95
1990 6,094 -- 7.26 3.53
1991 29,036 0.40 6.46 0.55
1992 123,722 0.70 6.14 6.44
1993 139,389 0.66 6.15 12.33
1994 148,684 0.65 5.85 20.18
1995 130,684 0.73 6.05 6.36
FRANKLIN VIRGINIA TAX-FREE INCOME FUND:
1988(1) 2,621 -- 5.48* 65.51
1989 13,885 0.16 6.89 3.92
1990 38,572 0.60 6.55 1.06
1991 82,662 0.72 6.38 2.56
1992 152,615 0.68 6.17 4.33
1993 211,171 0.65 5.98 5.74
1994 260,913 0.62 5.65 6.86
1995 255,965 0.69 5.86 21.73
</TABLE>
* Annualized
(1) For the period September 1, 1987 (effective date of registration) to
February 29, 1988.
(2) For the period October 3, 1988 (effective date of registration) to
February 28, 1989.
(3) For the period September 10, 1991 (effective date of registration) to
February 29, 1992.
+ Total return measures the change in value of an investment over the
periods indicated. It does not include the maximum initial sales
charge and assumes reinvestment of dividends at the maximum offering
price and of capital gains, if any, at net asset value. Effective May 1,
1994, with the implementation of a Rule 12b-1 distribution plan, the
Funds' sales charges on reinvested dividends were eliminated.
**During the periods indicated below, Franklin Advisers, Inc., the
investment manager, reduced its management fees and reimbursed other
expenses incurred by the Funds. Had such action not been taken, the
ratio of operating expenses to average net assets would have been as
follows:
<TABLE>
<CAPTION>
RATIO OF RATIO OF
EXPENSES EXPENSES
TO AVERAGE TO AVERAGE
NET ASSETS NET ASSETS
---------- ----------
Franklin Alabama Tax-Free Income Fund: Franklin Maryland Tax-Free Income Fund:
<S> <C> <C> <C>
1988(1) . . . . . . . . . . . . . . . . . . 0.86%* 1989(2) . . . . . . . . . . . . . . . . . . . . . 0.65%*
1989 . . . . . . . . . . . . . . . . . . . 0.74 1990 . . . . . . . . . . . . . . . . . . . . . . 0.73
1990 . . . . . . . . . . . . . . . . . . . 0.72 1991 . . . . . . . . . . . . . . . . . . . . . . 0.73
1991 . . . . . . . . . . . . . . . . . . . 0.72 Franklin Missouri Tax-Free Income Fund:
Franklin Florida Tax-Free Income Fund: 1988(1) . . . . . . . . . . . . . . . . . . . . . 0.87*
1988(1) . . . . . . . . . . . . . . . . . . 0.88* 1989 . . . . . . . . . . . . . . . . . . . . . . 0.77
1989 . . . . . . . . . . . . . . . . . . . 0.74 1990 . . . . . . . . . . . . . . . . . . . . . . 0.72
1990 . . . . . . . . . . . . . . . . . . . 0.66 Franklin North Carolina Tax-Free Income Fund:
Franklin Georgia Tax-Free Income Fund: 1988(1) . . . . . . . . . . . . . . . . . . . . . 0.87*
1988(1) . . . . . . . . . . . . . . . . . . 0.87* 1989 . . . . . . . . . . . . . . . . . . . . . . 0.74
1989 . . . . . . . . . . . . . . . . . . . 0.76 1990 . . . . . . . . . . . . . . . . . . . . . . 0.71
1990 . . . . . . . . . . . . . . . . . . . 0.74 Franklin Texas Tax-Free Income Fund:
1991 . . . . . . . . . . . . . . . . . . . 0.74 1988(1) . . . . . . . . . . . . . . . . . . . . . 0.89*
Franklin Kentucky Tax-Free Income Fund: 1989 . . . . . . . . . . . . . . . . . . . . . . 0.76
1992(3) . . . . . . . . . . . . . . . . . . 0.82* 1990 . . . . . . . . . . . . . . . . . . . . . . 0.71
1993 . . . . . . . . . . . . . . . . . . . 0.81 1991 . . . . . . . . . . . . . . . . . . . . . . 0.75
1994 . . . . . . . . . . . . . . . . . . . 0.71 Franklin Virginia Tax-Free Income Fund:
1995 . . . . . . . . . . . . . . . . . . . 0.81 1988(1) . . . . . . . . . . . . . . . . . . . . 0.87*
Franklin Louisiana Tax-Free Income Fund: 1989 . . . . . . . . . . . . . . . . . . . . . . 0.75
1988(1) . . . . . . . . . . . . . . . . . . 0.88* 1990 . . . . . . . . . . . . . . . . . . . . . . 0.72
1989 . . . . . . . . . . . . . . . . . . . 0.73
1990 . . . . . . . . . . . . . . . . . . . 0.70
1991 . . . . . . . . . . . . . . . . . . . 0.72
</TABLE>
