<PAGE> PAGE 1
000 B000000 06/30/96
000 C000000 0000826037
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 STATE BOND TAX FREE INCOME FUNDS, INC.
001 B000000 811-5412
001 C000000 5025827900
002 A000000 515 WEST MARKET STREET, 8TH FLOOR
002 B000000 LOUISVILLE
002 C000000 KY
002 D010000 40202
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 Y
007 B000000 1
007 C010100 1
007 C020100 STATE BOND MINNESOTA TAX-FREE INCOME FUND
007 C030100 N
007 C010200 2
007 C010300 3
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
008 A00AA01 ARM CAPITAL ADVISORS
008 B00AA01 A
008 C00AA01 801-47942
008 D01AA01 NEW YORK
008 D02AA01 NY
008 D03AA01 10166
011 A00AA01 SBM FINANCIAL SERVICES, INC.
011 B00AA01 8-14810
011 C01AA01 NEW ULM
011 C02AA01 MN
011 C03AA01 56073
011 C04AA01 0069
012 A00AA01 ARM TRANSFER AGENCY, INC.
012 B00AA01 84-5602
012 C01AA01 NEW ULM
012 C02AA01 MN
012 C03AA01 56073
<PAGE> PAGE 2
012 C04AA01 0069
013 A00AA01 ERNST & YOUNG LLP
013 B01AA01 KANSAS CITY
013 B02AA01 MO
013 B03AA01 64105
014 A00AA01 MORGAN STANLEY AND COMPANY
014 B00AA01 8-15869
015 A00AA01 INVESTORS FIDUCIARY TRUST COMPANY
015 B00AA01 C
015 C01AA01 KANSAS CITY
015 C02AA01 MO
015 C03AA01 64105
015 C04AA01 1716
015 E01AA01 X
018 00AA00 Y
019 A00AA00 Y
019 B00AA00 6
019 C00AA00 ARMCAPITAL
020 C000001 0
020 C000002 0
020 C000003 0
020 C000004 0
020 C000005 0
020 C000006 0
020 C000007 0
020 C000008 0
020 C000009 0
020 C000010 0
021 000000 0
022 A000001 FORD CREDIT CORPORATION
022 B000001 38-1612444
022 C000001 22630
022 D000001 0
022 A000002 SEARS ROEBUCK ACCEPTANCE CORPORATION
022 B000002 51-0080535
022 C000002 6435
022 D000002 0
022 A000003 GE CAPITAL CORPORATION
022 B000003 13-1500700
022 C000003 3163
022 D000003 0
022 A000004 SMITH BARNEY
022 B000004 13-1912900
022 C000004 2256
022 D000004 879
022 A000005 PAINE WEBBER
022 B000005 13-2638166
022 C000005 755
022 D000005 970
022 A000006 AMERICAN EXPRESS CREDIT CORPORATION
022 B000006 11-1988350
<PAGE> PAGE 3
022 C000006 1249
022 D000006 0
022 C000007 0
022 D000007 0
022 C000008 0
022 D000008 0
022 C000009 0
022 D000009 0
022 C000010 0
022 D000010 0
023 C000000 36488
023 D000000 1849
024 00AA00 N
025 D00AA01 0
025 D00AA02 0
025 D00AA03 0
025 D00AA04 0
025 D00AA05 0
025 D00AA06 0
025 D00AA07 0
025 D00AA08 0
026 A000000 N
026 B000000 Y
026 C000000 Y
026 D000000 Y
026 E000000 N
026 F000000 N
026 G010000 N
026 G020000 N
026 H000000 N
027 000000 Y
028 A01AA00 259
028 A02AA00 150
028 A03AA00 0
028 A04AA00 22
028 B01AA00 92
028 B02AA00 56
028 B03AA00 0
028 B04AA00 19
028 C01AA00 74
028 C02AA00 54
028 C03AA00 0
028 C04AA00 71
028 D01AA00 65
028 D02AA00 57
028 D03AA00 0
028 D04AA00 88
028 E01AA00 65
028 E02AA00 57
028 E03AA00 0
028 E04AA00 75
<PAGE> PAGE 4
028 F01AA00 125
028 F02AA00 114
028 F03AA00 0
028 F04AA00 336
028 G01AA00 680
028 G02AA00 488
028 G03AA00 0
028 G04AA00 611
028 H00AA00 853
029 00AA00 Y
030 A00AA00 54
030 B00AA00 4.50
030 C00AA00 0.00
031 A00AA00 17
031 B00AA00 0
032 00AA00 0
033 00AA00 37
034 00AA00 N
035 00AA00 0
036 B00AA00 0
037 00AA00 N
038 00AA00 0
039 00AA00 N
040 00AA00 Y
041 00AA00 Y
042 A00AA00 0
042 B00AA00 0
042 C00AA00 100
042 D00AA00 0
042 E00AA00 0
042 F00AA00 0
042 G00AA00 0
042 H00AA00 0
043 00AA00 47
044 00AA00 0
045 00AA00 Y
046 00AA00 N
047 00AA00 Y
048 00AA00 0.000
048 A01AA00 100000
048 A02AA00 0.850
048 B01AA00 0
048 B02AA00 0.000
048 C01AA00 0
048 C02AA00 0.000
048 D01AA00 0
048 D02AA00 0.000
048 E01AA00 0
048 E02AA00 0.000
048 F01AA00 0
048 F02AA00 0.000
<PAGE> PAGE 5
048 G01AA00 0
048 G02AA00 0.000
048 H01AA00 0
048 H02AA00 0.000
048 I01AA00 0
048 I02AA00 0.000
048 J01AA00 0
048 J02AA00 0.000
048 K01AA00 100000
048 K02AA00 0.800
049 00AA00 N
050 00AA00 N
051 00AA00 N
052 00AA00 N
053 A00AA00 Y
053 B00AA00 Y
054 A00AA00 Y
054 B00AA00 N
054 C00AA00 N
054 D00AA00 N
054 E00AA00 N
054 F00AA00 N
054 G00AA00 Y
054 H00AA00 Y
054 I00AA00 N
054 J00AA00 Y
054 K00AA00 N
054 L00AA00 N
054 M00AA00 Y
054 N00AA00 N
054 O00AA00 N
055 A00AA00 N
055 B00AA00 N
056 00AA00 Y
057 00AA00 N
058 A00AA00 N
059 00AA00 Y
060 A00AA00 N
060 B00AA00 N
061 00AA00 250
062 A00AA00 Y
062 B00AA00 0.0
062 C00AA00 0.0
062 D00AA00 0.0
062 E00AA00 0.0
062 F00AA00 0.0
062 G00AA00 0.0
062 H00AA00 0.0
062 I00AA00 2.0
062 J00AA00 0.0
062 K00AA00 0.0
<PAGE> PAGE 6
062 L00AA00 0.0
062 M00AA00 0.0
062 N00AA00 0.0
062 O00AA00 95.7
062 P00AA00 0.0
062 Q00AA00 0.0
062 R00AA00 0.0
063 A00AA00 0
063 B00AA00 5.7
064 A00AA00 Y
064 B00AA00 N
066 A00AA00 N
067 00AA00 N
068 A00AA00 N
068 B00AA00 N
069 00AA00 N
070 A01AA00 Y
070 A02AA00 N
070 B01AA00 N
070 B02AA00 N
070 C01AA00 N
070 C02AA00 N
070 D01AA00 N
070 D02AA00 N
070 E01AA00 N
070 E02AA00 N
070 F01AA00 N
070 F02AA00 N
070 G01AA00 N
070 G02AA00 N
070 H01AA00 N
070 H02AA00 N
070 I01AA00 N
070 I02AA00 N
070 J01AA00 N
070 J02AA00 N
070 K01AA00 N
070 K02AA00 N
070 L01AA00 N
070 L02AA00 N
070 M01AA00 N
070 M02AA00 N
070 N01AA00 Y
070 N02AA00 N
070 O01AA00 Y
070 O02AA00 N
070 P01AA00 N
070 P02AA00 N
070 Q01AA00 N
070 Q02AA00 N
070 R01AA00 N
<PAGE> PAGE 7
070 R02AA00 N
071 A00AA00 3820
071 B00AA00 2372
071 C00AA00 18036
071 D00AA00 13
072 A00AA00 12
072 B00AA00 1136
072 C00AA00 0
072 D00AA00 0
072 E00AA00 0
072 F00AA00 113
072 G00AA00 0
072 H00AA00 0
072 I00AA00 8
072 J00AA00 19
072 K00AA00 0
072 L00AA00 8
072 M00AA00 0
072 N00AA00 0
072 O00AA00 0
072 P00AA00 0
072 Q00AA00 0
072 R00AA00 9
072 S00AA00 8
072 T00AA00 47
072 U00AA00 0
072 V00AA00 0
072 W00AA00 9
072 X00AA00 221
072 Y00AA00 33
072 Z00AA00 947
072AA00AA00 78
072BB00AA00 25
072CC01AA00 0
072CC02AA00 129
072DD01AA00 947
072DD02AA00 0
072EE00AA00 35
073 A01AA00 0.5325
073 A02AA00 0.0000
073 B00AA00 0.0200
073 C00AA00 0.0000
074 A00AA00 55
074 B00AA00 0
074 C00AA00 390
074 D00AA00 18363
074 E00AA00 0
074 F00AA00 0
074 G00AA00 0
074 H00AA00 0
074 I00AA00 0
<PAGE> PAGE 8
074 J00AA00 0
074 K00AA00 0
074 L00AA00 401
074 M00AA00 0
074 N00AA00 19209
074 O00AA00 0
074 P00AA00 12
074 Q00AA00 0
074 R01AA00 0
074 R02AA00 0
074 R03AA00 0
074 R04AA00 0
074 S00AA00 0
074 T00AA00 19197
074 U01AA00 1818
074 U02AA00 0
074 V01AA00 10.56
074 V02AA00 0.00
074 W00AA00 0.0000
074 X00AA00 397
074 Y00AA00 0
075 A00AA00 0
075 B00AA00 19276
076 00AA00 0.00
077 A000000 Y
077 B000000 Y
077 C000000 N
077 D000000 N
077 E000000 N
077 F000000 N
077 G000000 N
077 H000000 N
077 I000000 N
077 J000000 N
077 K000000 N
077 L000000 N
077 M000000 N
077 N000000 N
077 O000000 N
077 P000000 N
077 Q010000 N
077 Q020000 N
077 Q030000 N
078 000000 N
080 A00AA00 NATIONAL UNION FIRE INSURANCE COMPANY
080 C00AA00 5000
081 A00AA00 Y
081 B00AA00 6
082 A00AA00 Y
082 B00AA00 100
083 A00AA00 N
<PAGE> PAGE 9
083 B00AA00 0
084 A00AA00 N
084 B00AA00 0
085 A00AA00 Y
085 B00AA00 N
086 A010000 0
086 A020000 0
086 B010000 0
086 B020000 0
086 C010000 0
086 C020000 0
086 D010000 0
086 D020000 0
086 E010000 0
086 E020000 0
086 F010000 0
086 F020000 0
SIGNATURE KEVIN HOWARD
TITLE SECRETARY
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
ANNUAL REPORT TO SHAREHOLDERS FOR THE STATE BOND MINNESOTA TAX-FREE INCOME FUND
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000826037
<NAME> STATE BOND TAX FREE INCOME FUNDS, INC.
<SERIES>
<NUMBER> 1
<NAME> STATE BOND MINNESOTA TAX-FREE INCOME FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUN-30-1996
<PERIOD-START> JUL-01-1995
<PERIOD-END> JUN-30-1996
<INVESTMENTS-AT-COST> 18,268,298
<INVESTMENTS-AT-VALUE> 18,752,939
<RECEIVABLES> 401,182
<ASSETS-OTHER> 55,214
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 19,209,335
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 12,423
<TOTAL-LIABILITIES> 12,423
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 18,666,066
<SHARES-COMMON-STOCK> 1,818,405
<SHARES-COMMON-PRIOR> 1,713,138
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 46,205
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 484,641
<NET-ASSETS> 19,196,912
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 1,135,500
<OTHER-INCOME> 0
<EXPENSES-NET> 188,484
<NET-INVESTMENT-INCOME> 947,016
<REALIZED-GAINS-CURRENT> 53,432
<APPREC-INCREASE-CURRENT> (128,527)
<NET-CHANGE-FROM-OPS> 871,921
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 947,016
<DISTRIBUTIONS-OF-GAINS> 34,819
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 141,624
<NUMBER-OF-SHARES-REDEEMED> 121,469
<SHARES-REINVESTED> 85,112
<NET-CHANGE-IN-ASSETS> 1,018,959
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 27,592
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 113,090
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 221,123
<AVERAGE-NET-ASSETS> 18,848,333
<PER-SHARE-NAV-BEGIN> 10.61
<PER-SHARE-NII> 0.53
<PER-SHARE-GAIN-APPREC> (0.03)
<PER-SHARE-DIVIDEND> 0.53
<PER-SHARE-DISTRIBUTIONS> 0.02
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.56
<EXPENSE-RATIO> 1.00
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
