<PAGE> PAGE 1
000 A000000 12/31/95
000 C000000 0000826037
000 D000000 N
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001 A000000 STATE BOND TAX FREE INCOME FUNDS, INC.
001 B000000 811-5412
001 C000000 5025827900
002 A000000 239 SOUTH FIFTH STREET, 12TH FLOOR
002 B000000 LOUISVILLE
002 C000000 KY
002 D010000 40202
003 000000 N
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007 C020100 STATE BOND MINNESOTA TAX-FREE INCOME FUND
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008 A00AA01 ARM CAPITAL ADVISORS, INC.
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 SBM FINANCIAL SERVICES, INC.
012 B00AA01 84-5576
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
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<PAGE> PAGE 3
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<PAGE> PAGE 4
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<PAGE> PAGE 5
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<PAGE> PAGE 6
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<PAGE> PAGE 7
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<PAGE> PAGE 8
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<PAGE> PAGE 9
SIGNATURE KEVIN L. HOWARD
TITLE SECRETARY
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
SEMI-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> 6-MOS
<FISCAL-YEAR-END> JUN-30-1996
<PERIOD-END> DEC-31-1995
<INVESTMENTS-AT-COST> 17,695,888
<INVESTMENTS-AT-VALUE> 18,746,870
<RECEIVABLES> 368,560
<ASSETS-OTHER> 58,603
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 19,174,033
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 19,571
<TOTAL-LIABILITIES> 19,571
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 18,108,617
<SHARES-COMMON-STOCK> 1,767,056
<SHARES-COMMON-PRIOR> 1,713,138
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (5,137)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1,050,982
<NET-ASSETS> 19,154,462
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 564,016
<OTHER-INCOME> 0
<EXPENSES-NET> 92,164
<NET-INVESTMENT-INCOME> 471,852
<REALIZED-GAINS-CURRENT> 2,090
<APPREC-INCREASE-CURRENT> 437,814
<NET-CHANGE-FROM-OPS> 911,756
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 471,852
<DISTRIBUTIONS-OF-GAINS> 34,819
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 78,141
<NUMBER-OF-SHARES-REDEEMED> 62,865
<SHARES-REINVESTED> 38,642
<NET-CHANGE-IN-ASSETS> 976,509
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 27,592
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 55,528
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 109,374
<AVERAGE-NET-ASSETS> 18,509,333
<PER-SHARE-NAV-BEGIN> 10.61
<PER-SHARE-NII> .27
<PER-SHARE-GAIN-APPREC> .25
<PER-SHARE-DIVIDEND> .27
<PER-SHARE-DISTRIBUTIONS> .02
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.84
<EXPENSE-RATIO> 1.00
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
