<PAGE> PAGE 1
000 A000000 06/30/98
000 C000000 0000906223
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 MONTANA TAX-FREE FUND, INC.
001 B000000 811-7738
001 C000000 7018525292
002 A000000 1 NORTH MAIN
002 B000000 MINOT
002 C000000 ND
002 D010000 58703
002 D020000 3189
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 N
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007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
008 A000001 ND MONEY MANAGEMENT, INC.
008 B000001 A
008 C000001 801-33131
008 D010001 MINOT
008 D020001 ND
008 D030001 58703
008 D040001 3189
010 A000001 ND RESOURCES, INC.
010 B000001 84-5441
010 C010001 MINOT
010 C020001 ND
010 C030001 58703
010 C040001 3189
011 A000001 ND CAPITAL, INC.
011 B000001 8-40329
011 C010001 MINOT
011 C020001 ND
011 C030001 58703
<PAGE> PAGE 2
011 C040001 3189
012 A000001 ND RESOURCES, INC.
012 B000001 84-5441
012 C010001 MINOT
012 C020001 ND
012 C030001 58703
012 C040001 3189
013 A000001 BRADY MARTZ AND ASSOCIATES
013 B010001 MINOT
013 B020001 ND
013 B030001 58703
014 A000001 ND CAPITAL, INC.
014 B000001 8-40329
014 A000002 RANSON CAPITAL CORPORATION
014 B000002 8-42561
015 A000001 FIRST WESTERN BANK & TRUST
015 B000001 C
015 C010001 MINOT
015 C020001 ND
015 C030001 58701
015 E010001 X
018 000000 Y
019 A000000 Y
019 B000000 10
019 C000000 INTEGRITYM
020 A000001 ND CAPITAL, INC.
020 B000001 45-0409311
020 C000001 1
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 1
022 A000001 PIPER JAFFRAY, INC.
022 B000001 41-0953246
022 C000001 2891
022 D000001 0
022 A000002 PAINE WEBBER, INC.
022 B000002 13-2638166
022 C000002 1680
022 D000002 0
022 A000003 DAIN BOSWORTH, INC.
022 B000003 41-0212020
022 C000003 1500
022 D000003 0
022 A000004 KIRKPATRICK, PETTIS, SMITH, PO
<PAGE> PAGE 3
022 B000004 47-0301070
022 C000004 0
022 D000004 501
022 A000005 D.A. DAVIDSON & CO.
022 B000005 81-0139474
022 C000005 498
022 D000005 0
022 A000006 CREWS & ASSOC.
022 B000006 71-0522369
022 C000006 311
022 D000006 0
022 A000007 GEORGE K. BAUM
022 B000007 43-1661917
022 C000007 100
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<PAGE> PAGE 4
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<PAGE> PAGE 5
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<PAGE> PAGE 6
060 B000000 N
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<PAGE> PAGE 7
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<PAGE> PAGE 8
073 A010000 0.2390
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<PAGE> PAGE 9
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SIGNATURE JACQUELINE L. PICKEN
TITLE CORPORATE SECRETARY
<TABLE> <S> <C>
<ARTICLE> 6
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> JUN-30-1998
<INVESTMENTS-AT-COST> 52,115,112
<INVESTMENTS-AT-VALUE> 54,150,067
<RECEIVABLES> 712,960
<ASSETS-OTHER> 2,815
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 54,865,842
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 316,960
<TOTAL-LIABILITIES> 316,960
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 53,701,976
<SHARES-COMMON-STOCK> 5,414,247
<SHARES-COMMON-PRIOR> 4,699,453
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (1,188,049)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 2,034,955
<NET-ASSETS> 54,548,882
<DIVIDEND-INCOME> 37,885
<INTEREST-INCOME> 1,387,016
<OTHER-INCOME> 0
<EXPENSES-NET> 335,841
<NET-INVESTMENT-INCOME> 1,089,060
<REALIZED-GAINS-CURRENT> (242,302)
<APPREC-INCREASE-CURRENT> (63,928)
<NET-CHANGE-FROM-OPS> 782,830
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (1,089,060)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> (129,170)
<NUMBER-OF-SHARES-SOLD> 800,463
<NUMBER-OF-SHARES-REDEEMED> (164,840)
<SHARES-REINVESTED> 79,171
<NET-CHANGE-IN-ASSETS> 6,799,779
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 133,569
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 335,841
<AVERAGE-NET-ASSETS> 51,536,571
<PER-SHARE-NAV-BEGIN> 10.16
<PER-SHARE-NII> .21
<PER-SHARE-GAIN-APPREC> (.05)
<PER-SHARE-DIVIDEND> (.21)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> (.03)
<PER-SHARE-NAV-END> 10.08
<EXPENSE-RATIO> 1.30<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>Ratio was annualized.
</FN>
</TABLE>
