|**ITEM 1. SCHEDULE OF
      INVESTMENTS**                              |                    |                   
|---------------------------------------------------------------------- | ------------------ | ------------------
|                                                                       |                    |                   
|********T. ROWE
      PRICE TAX-FREE INCOME
      FUND********         |                    |                   
|Unaudited                                                              |                    | May 31,
      2007
|Portfolio of Investments
                                             |                    |                   
|(Amounts in
      $000s)                                               | $
      Par/Shares | Value             
|                                                                      
|MUNICIPAL
      SECURITIES 99.2%                                       |                    |                   
|Alabama
      1.2%                                                     |                    |                   
|Baldwin County
      Eastern Shore Hosp. Auth., 5.75%, 4/1/27          |                    |                   
|(Prerefunded
      4/1/08) (1)                                         | 880                | 909               
|Camden Ind. Dev.
      Board, IDRB, Weyerhaeuser                       |                    |                   
|6.125%,
      12/1/24                                                  | 2,500              | 2,723             
|Health Care Auth.
      for Baptist Health, 5.00%, 11/15/14            | 3,400              | 3,524             
|Health Care Auth.
      for Baptist Health, 5.00%, 11/15/15            | 3,100              | 3,206             
|Health Care Auth.
      for Baptist Health, 5.00%, 11/15/18            | 1,935              | 1,976             
|Houston County
      Healthcare Auth., 5.25%, 10/1/30 (2)              | 5,500              | 5,881             
|Phoenix City, PCR,
      IDRB, MeadWestvaco, 6.10%, 5/15/30            | 3,750              | 3,957             
|                                                                       |                    | 22,176            
|Alaska
      0.7%                                                      |                    |                   
|Alaska HFC, Single
      Family, 4.70%, 12/1/22                        | 10,000             | 10,131            
|Alaska HFC, Single
      Family, 5.30%, 12/1/17                        | 2,025              | 2,033             
|Valdez Marine,
      Exxon Mobile, VRDN, 3.91%, 12/1/33                | 900                | 900               
|                                                                       |                    | 13,064            
|Arizona
      0.7%                                                     |                    |                   
|Arizona School
      Fac. Board, 5.50%, 7/1/18                         |                    |                   
|(Prerefunded
      7/1/11) (1)                                         | 5,000              | 5,307             
|Maricopa County
      IDA, Catholic Healthcare West, 5.00%, 7/1/18     | 5,000              | 5,160             
|Scottsdale IDA,
      5.80%, 12/1/31 (Prerefunded 12/1/11) (1)         | 2,000              | 2,167             
|                                                                       |                    | 12,634            
|Arkansas
      0.6%                                                    |                    |                   
|Jefferson County,
      Entergy, 4.60%, 10/1/17                        | 3,620              | 3,632             
|Little Rock Health
      Fac. Board, Baptist Health, 6.85%, 11/1/08    | 2,495              | 2,591             
|North Little Rock,
      6.50%, 7/1/15 (3)                             | 4,000              | 4,500             
|                                                                       |                    | 10,723            
|California
      11.8%                                                 |                    |                   
|Anaheim PFA,
      California Electric, 5.00%, 10/1/34 (3)             | 3,340              | 3,461             
|California, 5.25%,
      4/1/29 (Prerefunded 4/1/14) (1)               | 4,995              | 5,405             
|California, 5.65%,
      6/1/30 (Prerefunded 6/1/10) (1)               | 520                | 548               
|California, GO,
      5.00%, 8/1/26 (4)                                | 10,000             | 10,393            
|California, GO,
      5.00%, 2/1/33 (Prerefunded 2/1/14) (1)           | 5,000              | 5,329             
|California, GO,
      5.25%, 4/1/29                                    | 5                  | 5                 
|California, GO,
      5.25%, 4/1/34                                    | 5                  | 5                 
|California, GO,
      5.25%, 4/1/34 (Prerefunded 4/1/14) (1)           | 5,495              | 5,946             
|California, GO,
      5.50%, 11/1/33                                   | 8,000              | 8,612             
|California, GO,
      5.65%, 6/1/30                                    | 135                | 141               
|California Dept.
      of Veteran Affairs, 4.60%, 12/1/28              | 12,850             | 12,643            
|California Dept.
      of Water Resources, 5.375%, 5/1/21              |                    |                   
|(Prerefunded
      5/1/12) (1)                                         | 2,000              | 2,158             
|California Dept.
      of Water Resources, Power Supply                |                    |                   
|5.75%, 5/1/17
      (Prerefunded 5/1/12) (1)                           | 3,000              | 3,286             
|California EFA,
      Stanford Univ., 5.00%, 3/15/39                   | 810                | 907               
|California
      Infrastructure & Economic Dev. Bank, J. Paul Getty    |                    |                   
|Trust, 3.90%,
      4/1/33 (Tender 12/1/11)                            | 10,000             | 10,037            
|California Public
      Works Board, Dept. of Corrections              |                    |                   
|5.25%,
      6/1/28                                                    | 14,810             | 15,541            
|California Public
      Works Board, Mental Health, 5.50%, 6/1/23      | 3,000              | 3,271             
|California Public
      Works Board, State Dept. Health Services       |                    |                   
|5.00%,
      11/1/23                                                   | 12,055             | 12,559            
|California
      Statewide CDA, Huntington Memorial Hosp.              |                    |                   
|5.00%,
      7/1/27                                                    | 6,500              | 6,652             
|California
      Statewide CDA, Kaiser Permanente, 4.75%, 4/1/33       | 5,000              | 4,855             
|California
      Statewide CDA, Southern California Edison             |                    |                   
|4.25%, 11/1/33
      (Tender 11/1/16) (5)                              | 3,475              | 3,505             
|California
      Statewide CDA, Sutter Health, 5.625%, 8/15/42         | 3,850              | 4,097             
|California Tobacco
      Securitization Agency, Tobacco Ind.           |                    |                   
|STEP, 0.00%,
      6/1/21                                              | 5,000              | 4,343             
|Capistrano Unified
      School Dist. No. 90-2, 5.875%, 9/1/23         | 1,415              | 1,496             
|Folsom, Community
      Fac. Dist. #10, 5.875%, 9/1/28                 | 3,000              | 3,107             
|Foothill/Eastern
      Transportation Corridor Agency                  |                    |                   
|Zero Coupon,
      1/1/15 (6)                                          | 5,000              | 3,667             
|Foothill/Eastern
      Transportation Corridor Agency                  |                    |                   
|Zero Coupon,
      1/1/17 (6)                                          | 18,000             | 12,029            
|Golden State
      Tobacco Securitization Corp., Tobacco Ind.          |                    |                   
|5.00%,
      6/1/12                                                    | 4,000              | 4,128             
|Golden State
      Tobacco Securitization Corp., Tobacco Settlement    |                    |                   
|5.50%, 6/1/33
      (Prerefunded 6/1/13) (1)                           | 7,500              | 8,145             
|Golden State
      Tobacco Securitization Corp., Tobacco Settlement    |                    |                   
|5.625%, 6/1/38
      (Prerefunded 6/1/13) (1)                          | 8,500              | 9,287             
|Los Angeles Dept.
      of Water & Power, 5.00%, 7/1/23 (3)            | 5,000              | 5,215             
|Los Angeles
      Harbor, 7.60%, 10/1/18 (6)                           | 3,010              | 3,603             
|Palm Springs Fin.
      Auth., Convention Center, 5.50%, 11/1/29 (3)   | 3,100              | 3,408             
|San Diego Unified
      School Dist., 5.50%, 7/1/25 (3)                | 4,745              | 5,469             
|San Francisco
      Public Utility Commission, 5.00%, 11/1/27 (7)      | 8,000              | 8,262             
|San Jose Airport,
      5.00%, 3/1/28 (3)                              | 3,500              | 3,634             
|Southern
      California Public Power Auth., 6.75%, 7/1/11            | 4,050              | 4,467             
|Union Elementary
      School Dist., Zero Coupon, GO, 9/1/12 (5)       | 2,945              | 2,403             
|Union Elementary
      School Dist., Zero Coupon, GO, 9/1/13 (5)       | 3,520              | 2,750             
|Univ. of
      California Regents, 5.125%, 5/15/15 (2)                 | 1,900              | 2,023             
|Univ. of
      California Regents, 5.125%, 5/15/17 (2)                 | 10,000             | 10,645            
|West Hollywood
      CDA, East Side Redev., 5.625%, 9/1/28             | 2,015              | 2,106             
|                                                                       |                    | 219,543           
|Colorado
      1.5%                                                    |                    |                   
|Colorado HFA,
      6.50%, 11/15/31 (Prerefunded 11/15/11) (1)         | 2,500              | 2,780             
|Colorado HFA,
      Covenant Retirement Communities                    |                    |                   
|6.125%,
      12/1/33                                                  | 2,000              | 2,164             
|Denver Convention
      Center Hotal Auth., 5.25%, 12/1/22 (8)         | 7,020              | 7,537             
|Denver Convention
      Center Hotel Auth., 5.25%, 12/1/20 (8)         | 8,670              | 9,337             
|Denver Convention
      Center Hotel Auth., 5.25%, 12/1/21 (8)         | 5,000              | 5,376             
|                                                                       |                    | 27,194            
|Connecticut
      0.8%                                                 |                    |                   
|Connecticut
      Special Tax Obligation, 7.125%, 6/1/10               | 7,350              | 7,844             
|Mohegan Tribe
      Indians, 6.00%, 1/1/16                             | 2,250              | 2,368             
|Mohegan Tribe
      Indians, 6.25%, 1/1/31                             | 4,750              | 5,028             
|                                                                       |                    | 15,240            
|District of
      Columbia 3.9%                                        |                    |                   
|District of
      Columbia, 5.25%, 6/1/27 (Prerefunded 6/1/08) (1)(3)  | 1,330              | 1,363             
|District of
      Columbia, 5.25%, 6/1/27 (Prerefunded 6/1/08) (1)(3)  | 2,060              | 2,111             
|District of
      Columbia, 6.00%, 6/1/14 (3)(6)                       | 2,305              | 2,593             
|District of
      Columbia, Ballpark, GO, 5.00%, 2/1/35 (5)            | 10,000             | 10,413            
|District of
      Columbia, GO, 5.00%, 6/1/17 (2)                      | 7,125              | 7,550             
|District of
      Columbia, GO, 5.00%, 6/1/18 (2)                      | 11,230             | 11,871            
|District of
      Columbia, GO, 5.125%, 6/1/17 (2)                     | 12,720             | 13,414            
|District of
      Columbia, GO, 5.25%, 6/1/27 (3)                      | 6,585              | 6,723             
|District of
      Columbia, GO, 6.00%, 6/1/14 (3)                      | 4,400              | 4,928             
|District of
      Columbia, GO, 6.00%, 6/1/15 (3)                      | 1,550              | 1,755             
|District of
      Columbia, GO, 6.00%, 6/1/17 (3)                      | 4,250              | 4,891             
|District of
      Columbia, Tobacco Ind., 5.25%, 5/15/09               | 5,000              | 5,098             
|                                                                       |                    | 72,710            
|Florida
      3.5%                                                     |                    |                   
|Collier County,
      Gas Tax, 5.00%, 6/1/24 (2)                       | 8,220              | 8,578             
|Coral Gables HFA,
      Baptist Health, 5.25%, 8/15/24                 |                    |                   
|(Prerefunded
      8/15/14) (1)(7)                                     | 5,000              | 5,397             
|Dade County, Zero
      Coupon, 2/1/09 (3)                             | 12,185             | 11,368            
|Florida Board of
      Ed., GO, VRDN, 3.83%, 6/1/22                    | 2,345              | 2,345             
|Highlands County
      HFA, Adventist Health/Sunbelt                   |                    |                   
|5.875%,
      11/15/29                                                 | 7,000              | 7,736             
|Highlands County
      HFA, Adventist Health/Sunbelt                   |                    |                   
|6.00%, 11/15/31
      (Prerefunded 11/15/11) (1)                       | 2,750              | 3,000             
|Orange County HFA,
      Nemours Foundation, 5.00%, 1/1/35             | 6,345              | 6,555             
|Orange County HFA,
      Westminster Community Care                    |                    |                   
|6.75%,
      4/1/34                                                    | 2,500              | 2,590             
|South Miami HFA,
      Baptist Health, 5.00%, 8/15/27                  | 17,875             | 18,363            
|                                                                       |                    | 65,932            
|Georgia
      3.3%                                                     |                    |                   
|Atlanta Airport,
      5.25%, 1/1/33 (7)                               | 5,000              | 5,303             
|Chatham County
      Hosp. Auth., Memorial Health Univ. Medical        |                    |                   
|Center, 5.75%,
      1/1/29                                            | 3,500              | 3,724             
|Chatham County
      Hosp. Auth., Memorial Health Univ. Medical        |                    |                   
|Center, 6.125%,
      1/1/24                                           | 4,000              | 4,260             
|Forsyth County
      School Dist., 5.75%, 2/1/18                       |                    |                   
|(Prerefunded
      2/1/10) (1)                                         | 2,800              | 2,986             
|Fulton-DeKalb
      Hosp. Auth., Grady Memorial Hosp.                  |                    |                   
|6.80%, 1/1/08
      (2)(6)                                             | 5,905              | 6,010             
|Fulton-DeKalb
      Hosp. Auth., Grady Memorial Hosp.                  |                    |                   
|6.85%, 1/1/09
      (2)(6)                                             | 6,310              | 6,607             
|Fulton-DeKalb
      Hosp. Auth., Grady Memorial Hosp.                  |                    |                   
|6.85%, 1/1/10
      (2)(6)                                             | 6,745              | 7,241             
|Georgia Private
      Colleges & Univ. Auth., Emory Univ.              |                    |                   
|5.50%, 11/1/24
      (Prerefunded 11/1/10) (1)                         | 6,225              | 6,610             
|Gwinnett County
      School Dist., GO, 6.40%, 2/1/11                  | 1,905              | 2,072             
|Municipal Electric
      Auth. of Georgia, 5.50%, 1/1/20               |                    |                   
|(Prerefunded
      1/1/13) (1)                                         | 85                 | 92                
|Municipal Electric
      Auth. of Georgia, 5.50%, 1/1/20               | 2,915              | 3,136             
|Municipal Electric
      Auth. of Georgia, 5.70%, 1/1/19 (5)           | 5,100              | 5,701             
|Municipal Electric
      Auth. of Georgia, 7.25%, 1/1/24 (2)           | 6,500              | 8,734             
|                                                                       |                    | 62,476            
|Hawaii
      0.5%                                                      |                    |                   
|Hawaii, GO, VRDN,
      3.82%, 3/1/26 (7)                              | 4,980              | 4,980             
|Hawaii Airports
      System, 5.75%, 7/1/21 (5)                        | 4,000              | 4,229             
|                                                                       |                    | 9,209             
|Idaho
      0.1%                                                       |                    |                   
|Nez Perce County,
      PCR, IDRB, Potlatch Corp., 7.00%, 12/1/14      | 2,600              | 2,929             
|                                                                       |                    | 2,929             
|Illinois
      6.1%                                                    |                    |                   
|Chicago, 6.75%,
      1/1/35 (Prerefunded 7/1/10) (1)(5)               | 5,000              | 5,462             
|Chicago, GO,
      5.50%, 1/1/14 (7)                                   | 5,000              | 5,439             
|Chicago, GO,
      5.50%, 1/1/18 (2)                                   | 3,880              | 4,279             
|Chicago Board of
      Ed., GO, VRDN, 3.95%, 3/1/36 (9)                | 500                | 500               
|Chicago Board of
      Ed., School Reform, GO                          |                    |                   
|Zero Coupon,
      12/1/19 (5)                                         | 6,200              | 3,594             
|Illinois, Sales
      Tax, 5.50%, 6/15/16                              | 2,000              | 2,122             
|Illinois, Sales
      Tax, 6.125%, 6/15/16                             | 2,000              | 2,128             
|Illinois EFA,
      Northwestern Univ., 5.25%, 11/1/32                 |                    |                   
|(Prerefunded
      11/1/14) (1)                                        | 4,000              | 4,321             
|Illinois Fin.
      Auth., Educational Advancement Fund/Univ. Center   |                    |                   
|5.00%,
      5/1/30                                                    | 5,000              | 5,041             
|Illinois Fin.
      Auth., Northwestern Memorial Hosp.                 |                    |                   
|5.50%,
      8/15/43                                                   | 12,750             | 13,729            
|Illinois HFA,
      Chicago Charter School Foundation                  |                    |                   
|5.00%,
      12/1/26                                                   | 3,500              | 3,574             
|Illinois HFA, Glen
      Oaks Medical Center, 7.00%, 11/15/19 (6)      | 3,300              | 3,447             
|Illinois HFA,
      Institute of Technology, 5.00%, 4/1/22             | 5,765              | 5,914             
|Illinois HFA,
      Institute of Technology, 5.00%, 4/1/23             | 3,250              | 3,329             
|Illinois HFA,
      Institute of Technology, 5.00%, 4/1/26             | 2,000              | 2,047             
|Illinois HFA,
      Institute of Technology, 5.00%, 4/1/31             | 5,500              | 5,610             
|Illinois HFA,
      Institute of Technology, 5.00%, 4/1/36             | 3,000              | 3,030             
|Illinois HFA,
      Lutheran Hillside Village, 5.25%, 2/1/37           | 4,500              | 4,690             
|Illinois HFA,
      Palos Community Hosp., 5.00%, 5/15/32 (3)          | 11,500             | 11,948            
|Illinois HFA,
      Univ. of Chicago, VRDN, 3.93%, 8/15/26 (3)         | 2,700              | 2,700             
|Metropolitan Pier
      & Exposition Auth., McCormick                  |                    |                   
|Zero Coupon,
      6/15/18 (5)                                         | 14,160             | 8,782             
|Regional
      Transportation Auth., 6.70%, 11/1/21 (5)                | 5,000              | 6,091             
|Regional
      Transportation Auth., 7.75%, 6/1/19 (5)                 | 5,350              | 6,860             
|                                                                       |                    | 114,637           
|Indiana
      0.7%                                                     |                    |                   
|Goshen, Greencroft
      Obligated Group, 5.75%, 8/15/19               | 3,000              | 3,048             
|Indiana
      Transportation Fin. Auth., Highway, 5.375%, 12/1/25      |                    |                   
|(Prerefunded
      12/1/10) (1)                                        | 640                | 672               
|Indiana
      Transportation Fin. Auth., Highway, 5.375%, 12/1/25      |                    |                   
|(Prerefunded
      12/1/10) (1)                                        | 3,360              | 3,528             
|Rockport Ind.
      Pollution Control, American Electric Power         |                    |                   
|4.15%, 7/1/25
      (Tender 7/15/11) (2)                               | 5,000              | 5,024             
|                                                                       |                    | 12,272            
|Iowa
      0.3%                                                        |                    |                   
|Iowa Fin. Auth.,
      Single Family, 5.70%, 1/1/27                    | 1,760              | 1,773             
|Scott County,
      Ridgecrest Village, 7.25%, 11/15/26                |                    |                   
|(Prerefunded
      11/15/10) (1)                                       | 4,000              | 4,434             
|                                                                       |                    | 6,207             
|Kansas
      1.2%                                                      |                    |                   
|Burlington, PCR,
      Kansas Gas & Electric, 5.30%, 6/1/31 (3)        | 21,525             | 22,828            
|                                                                       |                    | 22,828            
|Louisiana
      1.6%                                                   |                    |                   
|Calcasieu Parish,
      IDRB, PCR, Entergy, 5.45%, 7/1/10              | 1,750              | 1,760             
|Louisiana, Gas
      & Fuels Tax, 4.75%, 5/1/39 (7)                    | 15,000             | 15,184            
|Louisiana PFA,
      Baton Rouge General Medical Center                |                    |                   
|5.25%, 7/1/33
      (3)                                                | 10,000             | 10,525            
|Sabine River
      Auth., PCR, Intl. Paper, 6.20%, 2/1/25              | 2,500              | 2,654             
|                                                                       |                    | 30,123            
|Maryland
      2.0%                                                    |                    |                   
|Baltimore City,
      Convention Center Hotel, 5.875%, 9/1/39          | 1,500              | 1,592             
|Gaithersburg,
      Asbury Obligation Group, 5.125%, 1/1/26            | 5,000              | 5,131             
|Gaithersburg,
      Asbury Obligation Group, 5.125%, 1/1/36            | 5,000              | 5,104             
|Maryland CDA,
      3.90%, 9/1/16                                      | 3,500              | 3,454             
|Maryland CDA,
      3.95%, 9/1/17                                      | 3,725              | 3,671             
|Maryland Economic
      Dev. Corp., Chesapeake Bay Hyatt               |                    |                   
|5.00%,
      12/1/31                                                   | 4,000              | 4,015             
|Maryland HHEFA,
      Johns Hopkins Hosp., Zero Coupon, 7/1/19         | 7,675              | 4,269             
|Maryland HHEFA,
      Mercy Ridge Retirement Community                 |                    |                   
|6.00%, 4/1/35
      (Prerefunded 4/1/13) (1)                           | 2,535              | 2,816             
|Maryland HHEFA,
      Univ. of Maryland Medical System                 |                    |                   
|7.00%, 7/1/22
      (5)                                                | 1,500              | 1,915             
|Prince Georges
      County Hosp., Dimensions Health                   |                    |                   
|5.30%,
      7/1/24                                                    | 5,685              | 4,944             
|                                                                       |                    | 36,911            
|Massachusetts
      4.9%                                               |                    |                   
|Massachusetts,
      5.25%, 8/1/16 (Prerefunded 8/1/13) (1)            | 10,000             | 10,699            
|Massachusetts,
      5.75%, 1/1/31 (Prerefunded 1/1/14) (1)(5)         | 6,000              | 6,599             
|Massachusetts, GO,
      5.25%, 8/1/28                                 | 15,000             | 16,944            
|Massachusetts, GO,
      VRDN, 3.90%, 12/1/30                          | 2,000              | 2,000             
|Massachusetts Bay
      Transportation Auth., 5.25%, 7/1/30            |                    |                   
|(Prerefunded
      7/1/14) (1)                                         | 2,000              | 2,164             
|Massachusetts Bay
      Transportation Auth., GO, 7.00%, 3/1/14        | 3,150              | 3,628             
|Massachusetts Bay
      Transportation Auth., GO, 7.00%, 3/1/21        | 6,200              | 7,560             
|Massachusetts
      HEFA, Harvard Univ., 6.00%, 7/1/35                 |                    |                   
|(Prerefunded
      7/1/10) (1)                                         | 3,500              | 3,750             
|Massachusetts
      HEFA, Harvard Univ., 6.25%, 4/1/20                 | 5,000              | 6,081             
|Massachusetts
      HEFA, Massachusetts Institute of Technology        |                    |                   
|5.50%,
      7/1/32                                                    | 10,000             | 11,813            
|Massachusetts
      HEFA, Partners Healthcare System                   |                    |                   
|5.75%,
      7/1/32                                                    | 4,400              | 4,711             
|Massachusetts Port
      Auth., 5.75%, 7/1/29                          |                    |                   
|(Prerefunded
      1/1/10) (1)                                         | 5,000              | 5,279             
|Massachusetts
      Water Pollution Abatement Trust                    |                    |                   
|5.25%,
      8/1/20                                                    | 55                 | 57                
|Massachusetts
      Water Pollution Abatement Trust                    |                    |                   
|5.75%, 8/1/29
      (Prerefunded 8/1/09) (1)                           | 990                | 1,040             
|Massachusetts
      Water Pollution Abatement Trust                    |                    |                   
|Water Resources
      Auth., 5.75%, 8/1/29                             | 4,010              | 4,197             
|Massachusetts
      Water Pollution Abatement Trust                    |                    |                   
|Water Resources
      Auth., 6.00%, 8/1/19                             | 5,000              | 5,908             
|                                                                       |                    | 92,430            
|Michigan
      2.0%                                                    |                    |                   
|Cornell Township
      Economic Dev., MeadWestvaco                     |                    |                   
|5.875%, 5/1/18
      (Prerefunded 5/1/12) (1)                          | 2,000              | 2,176             
|Detroit Sewage
      Disposal, VRDN, 3.90%, 7/1/33 (7)                 | 1,100              | 1,100             
|Dickinson County,
      PCR, Int'l. Paper, 4.80%, 11/1/18              | 2,000              | 2,012             
|Michigan Hosp.
      Fin. Auth., Ascension Health, 5.25%, 11/15/26     | 3,570              | 3,710             
|Michigan Hosp.
      Fin. Auth., Trinity Health, 5.00%, 8/15/25        | 10,000             | 10,256            
|Michigan Hosp.
      Fin. Auth., Trinity Health, 6.00%, 12/1/20        | 1,500              | 1,603             
|Michigan Hosp.
      Fin. Auth., Trinity Health, VRDN                  |                    |                   
|3.90%,
      11/1/18                                                   | 3,700              | 3,700             
|Michigan Strategic
      Fund, IDRB, Detroit Edison, 5.45%, 9/1/29     | 5,000              | 5,193             
|Univ. of Michigan
      Regents, Univ. of Michigan Hosp.               |                    |                   
|VRDN, 3.95%,
      12/1/37                                             | 7,400              | 7,400             
|                                                                       |                    | 37,150            
|Minnesota
      0.6%                                                   |                    |                   
|Minneapolis-St.
      Paul Metropolitan Airport Commission             |                    |                   
|5.25%, 1/1/32
      (5)                                                | 10,000             | 10,461            
|                                                                       |                    | 10,461            
|Mississippi
      0.5%                                                 |                    |                   
|Mississippi
      Business Fin., PCR, System Energy Resources          |                    |                   
|5.90%,
      5/1/22                                                    | 7,000              | 7,071             
|Mississippi Home
      Corp., Single Family, 4.65%, 12/1/38            | 2,200              | 2,127             
|                                                                       |                    | 9,198             
|Missouri
      0.7%                                                    |                    |                   
|Missouri Joint
      Municipal Electric Utility Commission, Plum Point |                    |                   
|5.00%, 1/1/23
      (3)                                                | 8,975              | 9,461             
|Missouri Joint
      Municipal Electric Utility Commission, Plum Point |                    |                   
|5.00%, 1/1/27
      (3)                                                | 4,000              | 4,199             
|Univ. of Missouri,
      VRDN, 3.87%, 11/1/30                          | 200                | 200               
|                                                                       |                    | 13,860            
|Montana
      1.0%                                                     |                    |                   
|Forsyth, PCR,
      IDRB, Northwestern Corp., 4.65%, 8/1/23 (2)        | 18,400             | 18,799            
|                                                                       |                    | 18,799            
|Nebraska
      0.2%                                                    |                    |                   
|Omaha Public Power
      Dist., 6.20%, 2/1/17 (6)                      | 3,000              | 3,417             
|                                                                       |                    | 3,417             
|Nevada
      2.6%                                                      |                    |                   
|Clark County, Fuel
      Tax, 5.125%, 7/1/16 (2)                       | 10,870             | 11,536            
|Clark County, GO,
      4.75%, 11/1/35 (5)                             | 5,450              | 5,533             
|Clark County
      Airport, Las Vegas McCarran Int'l. Airport          |                    |                   
|4.75%, 7/1/22
      (3)                                                | 13,795             | 13,972            
|Clark County
      School Dist., GO, 7.00%, 6/1/11 (3)                 | 3,500              | 3,893             
|Clark County,
      IDRB, PCR, Nevada Power, 5.30%, 10/1/11            | 2,000              | 2,000             
|Clark County,
      IDRB, PCR, Southwest Gas, 5.45%, 3/1/38            |                    |                   
|(Tender
      3/1/13)                                                  | 5,000              | 5,225             
|Nevada, GO, 7.25%,
      11/1/10 (6)                                   | 3,050              | 3,098             
|Truckee Meadows
      Water Auth., 5.50%, 7/1/19                       |                    |                   
|(Prerefunded
      7/1/11) (1)(7)                                      | 2,500              | 2,653             
|                                                                       |                    | 47,910            
|New Hampshire
      1.8%                                               |                    |                   
|New Hampshire
      Business Fin. Auth., PCR, Public Service           |                    |                   
|5.45%, 5/1/21
      (3)                                                | 14,500             | 15,494            
|New Hampshire
      HEFA, Covenant Health Systems                      |                    |                   
|6.00%,
      7/1/22                                                    | 3,400              | 3,654             
|New Hampshire
      HEFA, Dartmouth-Hitchcock Obligation Group         |                    |                   
|5.50%, 8/1/27
      (7)                                                | 7,930              | 8,445             
|New Hampshire
      HEFA, Wentworth-Douglas Hosp.                      |                    |                   
|5.375%, 1/1/15
      (3)                                               | 5,600              | 5,907             
|                                                                       |                    | 33,500            
|New Jersey
      1.9%                                                  |                    |                   
|Middlesex County,
      PCR, Amerada Hess, 6.05%, 9/15/34              | 2,000              | 2,156             
|New Jersey
      Economic Dev. Auth., Harrogate, 5.875%, 12/1/26       | 3,500              | 3,579             
|New Jersey
      Economic Dev. Auth., Motor Vehicle Surcharge          |                    |                   
|5.25%, 7/1/31
      (3)                                                | 5,000              | 5,319             
|New Jersey
      Economic Dev. Auth., School Fac. Construction         |                    |                   
|5.25%,
      9/1/18                                                    | 5,000              | 5,382             
|New Jersey
      Economic Dev. Auth., Seabrook Village                 |                    |                   
|5.25%,
      11/15/26                                                  | 2,000              | 2,025             
|New Jersey HFFA,
      Pascack Valley Hosp. Assoc., 6.50%, 7/1/23      | 3,000              | 2,688             
|New Jersey HFFA,
      Pascack Valley Hosp. Assoc., 6.625%, 7/1/36     | 3,000              | 2,684             
|New Jersey
      Transportation Trust Fund Auth., 5.50%, 12/15/21      | 7,165              | 8,070             
|Tobacco Settlement
      Fin. Corp., Tobacco Industry                  |                    |                   
|4.50%,
      6/1/23                                                    | 4,650              | 4,546             
|                                                                       |                    | 36,449            
|New Mexico
      0.9%                                                  |                    |                   
|Jicarilla Apache
      Nation, 5.50%, 9/1/23                           | 3,890              | 4,160             
|Sandoval County,
      IDRB, Intel Corp., 5.00%, 6/1/20                | 3,725              | 3,897             
|Univ. of New
      Mexico Regents, Univ. of New Mexico Hosp.           |                    |                   
|5.00%, 7/1/32
      (7)                                                | 7,840              | 8,123             
|                                                                       |                    | 16,180            
|New York
      13.6%                                                   |                    |                   
|Dormitory Auth. of
      the State of New York, City Univ.             |                    |                   
|5.75%,
      7/1/13                                                    | 10,000             | 10,709            
|Dormitory Auth. of
      the State of New York, City Univ.             |                    |                   
|5.75%, 7/1/18
      (2)                                                | 5,000              | 5,602             
|Dormitory Auth. of
      the State of New York, City Univ.             |                    |                   
|6.00%,
      7/1/14                                                    | 10,000             | 10,813            
|Dormitory Auth. of
      the State of New York, Mount Sinai Hosp.      |                    |                   
|5.50%,
      7/1/26                                                    | 2,000              | 2,030             
|Dormitory Auth. of
      the State of New York, Personal Income Tax    |                    |                   
|5.00%,
      3/15/30                                                   | 7,000              | 7,321             
|Dormitory Auth. of
      the State of New York, State Univ.            |                    |                   
|5.25%, 5/15/15
      (2)                                               | 3,600              | 3,859             
|Dormitory Auth. of
      the State of New York, State Univ.            |                    |                   
|5.25%,
      5/15/19                                                   | 3,325              | 3,584             
|Dormitory Auth. of
      the State of New York, State Univ. Ed. Fac.   |                    |                   
|5.75%, 5/15/19
      (Prerefunded 5/15/10) (1)(5)                      | 4,945              | 5,258             
|Metropolitan
      Transportation Auth., 5.00%, 11/15/30               | 6,500              | 6,763             
|Metropolitan
      Transportation Auth., 5.125%, 11/15/31              | 5,000              | 5,199             
|Metropolitan
      Transportation Auth., 5.25%, 11/15/31               | 2,945              | 3,090             
|Metropolitan
      Transportation Auth., 5.25%, 11/15/32               | 10,000             | 10,775            
|Metropolitan
      Transportation Auth., VRDN, 3.84%, 11/15/14         | 5,500              | 5,500             
|Metropolitan
      Transportation Auth., Commuter Fac.                 |                    |                   
|5.75%, 7/1/21
      (Prerefunded 1/1/08) (1)(3)                        | 12,750             | 13,091            
|Nassau County
      Tobacco Settlement Corp., STEP, 0.00%, 6/1/26      | 2,500              | 2,298             
|New York City,
      5.50%, 6/1/21 (Prerefunded 6/1/13) (1)            | 5,240              | 5,691             
|New York City, GO,
      5.25%, 8/1/13                                 | 5,000              | 5,335             
|New York City, GO,
      5.25%, 5/15/22                                | 10,000             | 10,609            
|New York City, GO,
      5.25%, 8/15/26                                | 5,000              | 5,307             
|New York City, GO,
      5.50%, 6/1/21                                 | 2,260              | 2,423             
|New York City, GO,
      6.00%, 5/15/30 (Prerefunded 5/15/10) (1)      | 2,855              | 3,055             
|New York City, GO,
      6.00%, 5/15/30                                | 25                 | 27                
|New York City, GO,
      VRDN, 3.86%, 4/1/36                           | 800                | 800               
|New York City IDA,
      7 World Trade Center, 6.25%, 3/1/15           | 4,800              | 5,066             
|New York City IDA,
      7 World Trade Center, 6.75%, 3/1/15           | 1,000              | 1,065             
|New York City
      Municipal Water Fin. Auth., 5.50%, 6/15/33         |                    |                   
|(Prerefunded
      6/15/10) (1)                                        | 9,000              | 9,518             
|New York City
      Municipal Water Fin. Auth., 6.00%, 6/15/33         |                    |                   
|(Prerefunded
      6/15/10) (1)                                        | 2,220              | 2,379             
|New York City
      Transitional Fin. Auth., 5.75%, 11/15/20           |                    |                   
|(Prerefunded
      5/15/10) (1)                                        | 510                | 543               
|New York City
      Transitional Fin. Auth., 5.75%, 11/15/20           |                    |                   
|(Prerefunded
      5/15/10) (1)                                        | 4,990              | 5,308             
|New York City
      Transitional Fin. Auth., 6.00%, 8/15/17            |                    |                   
|(Prerefunded
      8/15/09) (1)                                        | 4,000              | 4,228             
|New York City
      Transitional Fin. Auth., STEP, 5.25%, 2/1/29       | 16,640             | 17,354            
|New York Liberty
      Dev. Corp., Goldman Sachs Group                 |                    |                   
|5.25%,
      10/1/35                                                   | 10,000             | 11,108            
|New York State
      Thruway Auth., 5.50%, 3/15/20                     |                    |                   
|(Prerefunded
      3/15/12) (1)                                        | 3,000              | 3,216             
|New York State
      Thruway Auth., Highway & Bridge                   |                    |                   
|5.00%, 4/1/21
      (2)                                                | 5,000              | 5,286             
|New York State
      Urban Dev. Corp., 5.50%, 7/1/26                   |                    |                   
|(Prerefunded
      7/1/08) (1)                                         | 5,950              | 6,064             
|New York State
      Urban Dev. Corp., 5.50%, 7/1/26                   | 4,050              | 4,117             
|New York State
      Urban Dev. Corp., VRDN, 3.84%, 1/1/09             | 10,400             | 10,400            
|Seneca Nation
      Indians Capital Improvement Auth.                  |                    |                   
|5.00%, 12/1/23
      (10)                                              | 3,000              | 3,023             
|Tobacco Settlement
      Fin. Corp., 5.25%, 6/1/20 (2)                 | 5,000              | 5,328             
|Triborough Bridge
      & Tunnel Auth., General Purpose                |                    |                   
|5.25%, 1/1/28
      (Prerefunded 1/1/22) (1)                           | 10,000             | 11,182            
|Triborough Bridge
      & Tunnel Auth., General Purpose                |                    |                   
|5.50%, 1/1/17
      (6)                                                | 18,275             | 20,053            
|                                                                       |                    | 254,377           
|North Carolina
      2.4%                                              |                    |                   
|Charlotte-Mecklenberg Hosp. Auth., Charlotte/Carolina                  |                    |                   
|Healthcare, VRDN,
      3.90%, 1/15/26                                 | 100                | 100               
|North Carolina
      Eastern Municipal Power Agency                    |                    |                   
|5.00%, 1/1/20
      (2)                                                | 10,000             | 10,571            
|North Carolina
      Eastern Municipal Power Agency, 5.30%, 1/1/15     | 1,000              | 1,052             
|North Carolina
      Eastern Municipal Power Agency                    |                    |                   
|5.375%,
      1/1/11                                                   | 5,000              | 5,222             
|North Carolina
      Eastern Municipal Power Agency                    |                    |                   
|5.375%,
      1/1/16                                                   | 2,000              | 2,108             
|North Carolina
      Eastern Municipal Power Agency, 5.50%, 1/1/12     | 2,060              | 2,182             
|North Carolina
      Eastern Municipal Power Agency, 6.70%, 1/1/19     | 3,965              | 4,235             
|North Carolina
      Eastern Municipal Power Agency                    |                    |                   
|7.50%, 1/1/10
      (6)                                                | 4,650              | 5,024             
|North Carolina
      Eastern Municipal Power Agency, 7.50%, 1/1/10     | 4,330              | 4,639             
|North Carolina
      Municipal Power Agency #1, Catawba Electric       |                    |                   
|5.50%,
      1/1/13                                                    | 5,335              | 5,699             
|North Carolina
      Municipal Power Agency #1, Catawba Electric       |                    |                   
|6.50%,
      1/1/20                                                    | 4,500              | 4,806             
|                                                                       |                    | 45,638            
|Ohio
      2.4%                                                        |                    |                   
|Cuyahoga County
      Hosp., Cleveland Clinic Health System            |                    |                   
|6.00%,
      1/1/32                                                    | 7,600              | 8,285             
|Hamilton,
      Electric, 4.70%, 10/15/25 (7)                          | 9,480              | 9,642             
|Montgomery County
      Hosp., Catholic Health Initiatives             |                    |                   
|6.00%, 12/1/19
      (6)                                               | 3,310              | 3,541             
|Montgomery County
      Hosp., Catholic Health Initiatives             |                    |                   
|6.00%,
      12/1/19                                                   | 3,190              | 3,393             
|Ohio State Univ.,
      5.25%, 6/1/17                                  | 5,000              | 5,314             
|Ohio Water Dev.
      Auth., Firstenergy, 3.75%, 10/1/30               | 5,000              | 4,979             
|Ohio Water Dev.
      Auth., PCR, Dayton Power & Light                 |                    |                   
|4.80%, 1/1/34
      (5)                                                | 10,000             | 10,135            
|                                                                       |                    | 45,289            
|Oklahoma
      0.6%                                                    |                    |                   
|Jackson County
      Memorial Hosp. Auth., 7.30%, 8/1/15               | 1,740              | 1,749             
|Oklahoma Dev. Fin.
      Auth., Inverness Village, 8.00%, 2/1/32       | 4,000              | 4,489             
|Tulsa County Home
      Fin. Auth., Single Family                      |                    |                   
|6.90%, 8/1/10
      (5)(6)                                             | 4,250              | 4,627             
|                                                                       |                    | 10,865            
|Oregon
      0.2%                                                      |                    |                   
|Oregon Housing
      & Community Services Dept., Single Family         |                    |                   
|6.00%,
      7/1/20                                                    | 1,830              | 1,872             
|Umatilla County
      Hosp. Fac. Auth., Catholic Health Initiatives    |                    |                   
|5.50%, 3/1/22
      (6)                                                | 1,255              | 1,339             
|Umatilla County
      Hosp. Fac. Auth., Catholic Health Initiatives    |                    |                   
|5.50%,
      3/1/22                                                    | 955                | 1,009             
|                                                                       |                    | 4,220             
|Pennsylvania
      2.0%                                                |                    |                   
|Allegheny County
      Hosp. Dev. Auth., West Penn Allegheny Health    |                    |                   
|System, 9.25%,
      11/15/22                                          | 3,000              | 3,561             
|Chester County
      HEFA, Jefferson Health System                     |                    |                   
|5.375%,
      5/15/27                                                  | 6,500              | 6,625             
|Cumberland County
      Municipal Auth., Wesley Affiliated Services    |                    |                   
|7.125%, 1/1/25
      (Prerefunded 1/1/14) (1)                          | 3,000              | 3,438             
|Montgomery County
      IDA, Acts Retirement Communities               |                    |                   
|5.00%,
      11/15/11                                                  | 1,640              | 1,690             
|Montgomery County
      IDA, Acts Retirement Communities               |                    |                   
|5.00%,
      11/15/14                                                  | 5,455              | 5,682             
|Pennsylvania
      Turnpike Commission, 5.25%, 12/1/32 (2)             | 7,500              | 8,037             
|Pennsylvania
      Turnpike Commission, 5.50%, 7/15/33                 |                    |                   
|(Prerefunded
      7/15/11) (1)(2)                                     | 3,500              | 3,748             
|Saint Mary Hosp.
      Auth., Catholic Health East                     |                    |                   
|5.375%, 11/15/34
      (Prerefunded 11/15/14) (1)                      | 1,350              | 1,470             
|West Shore Area
      Auth., Holy Spirit Hosp., 6.20%, 1/1/26          | 3,250              | 3,443             
|                                                                       |                    | 37,694            
|Puerto Rico
      1.9%                                                 |                    |                   
|Puerto Rico
      Electric Power Auth., VR, 4.108%, 7/1/29 (7)         | 2,800              | 2,799             
|Puerto Rico
      Highway & Transportation Auth., 5.50%, 7/1/21        | 4,000              | 4,409             
|Puerto Rico
      Highway & Transportation Auth.                       |                    |                   
|Zero Coupon,
      7/1/20                                              | 12,205             | 6,731             
|Puerto Rico Public
      Fin. Corp., 5.75%, 8/1/27 (Tender 2/1/12)     | 20,000             | 21,248            
|                                                                       |                    | 35,187            
|South Carolina
      2.5%                                              |                    |                   
|Connector 2000
      Assoc., Zero Coupon, 1/1/09                       | 2,700              | 2,083             
|Connector 2000
      Assoc., Zero Coupon, 1/1/10                       | 3,400              | 2,814             
|Connector 2000
      Assoc., Zero Coupon, 1/1/11                       | 2,200              | 1,034             
|Connector 2000
      Assoc., Zero Coupon, 1/1/29                       | 20,500             | 3,748             
|Georgetown County,
      PCR, Int'l. Paper, 5.70%, 4/1/14              | 9,090              | 9,800             
|Medical Univ.
      Hosp. Auth., 5.00%, 8/15/31 (3)                    | 15,330             | 15,882            
|Piedmont Municipal
      Power Agency, 6.50%, 1/1/14 (5)(6)            | 500                | 574               
|Piedmont Municipal
      Power Agency, 6.50%, 1/1/14 (5)               | 3,000              | 3,421             
|South Carolina
      Jobs Economic Dev. Auth., Bon Secours Health      |                    |                   
|System, 5.625%,
      11/15/30                                         | 4,000              | 4,204             
|South Carolina
      Public Service, TECP, 3.82%, 6/5/07               | 3,700              | 3,700             
|                                                                       |                    | 47,260            
|South Dakota
      0.3%                                                |                    |                   
|South Dakota HEFA,
      Sanford Health, 5.25%, 11/1/27                | 2,000              | 2,089             
|South Dakota HEFA,
      Sanford Health, 5.50%, 11/1/31                | 3,000              | 3,207             
|                                                                       |                    | 5,296             
|Tennessee
      2.1%                                                   |                    |                   
|Chattanooga Health
      Ed. & Housing Fac. Board, Chattanooga         |                    |                   
|Memorial Hosp.,
      6.625%, 9/1/07 (3)(6)                            | 2,950              | 2,970             
|Chattanooga Health
      Ed. & Housing Fac. Board, Chattanooga         |                    |                   
|Memorial Hosp.,
      6.625%, 9/1/08 (3)(6)                            | 3,150              | 3,262             
|Metropolitan
      Nashville & Davidson Counties, STEP                 |                    |                   
|7.70%, 1/1/12
      (5)                                                | 6,250              | 6,923             
|Shelby County
      Health, Ed. & Housing Board, Bonheur               |                    |                   
|5.50%, 8/15/12
      (3)(6)                                            | 4,000              | 4,164             
|Tennessee Energy
      Acquisition Corp., Goldman Sachs Group          |                    |                   
|5.25%,
      9/1/18                                                    | 15,000             | 16,246            
|Tennessee Energy
      Acquisition Corp., Goldman Sachs Group          |                    |                   
|5.25%,
      9/1/26                                                    | 5,000              | 5,445             
|                                                                       |                    | 39,010            
|Texas
      5.4%                                                       |                    |                   
|Abilene Health
      Fac. Dev. Corp., Sears Methodist Retirement       |                    |                   
|System Obligation
      Group, 7.00%, 11/15/33                         | 3,500              | 3,855             
|Austin, Water
      & Wastewater, 5.125%, 5/15/27 (7)                  | 10,955             | 11,325            
|Austin Convention
      Enterprises, 5.00%, 1/1/34 (8)                 | 7,200              | 7,500             
|Brazos River
      Auth., PCR, Centerpoint Energy, 7.75%, 12/1/18      | 4,000              | 4,183             
|Cypress-Fairbanks
      Independent School District                    |                    |                   
|Zero Coupon,
      2/15/19                                             | 6,140              | 3,654             
|Harris County
      Health Fac. Dev. Corp., Memorial Hermann           |                    |                   
|Healthcare,
      6.375%, 6/1/29 (Prerefunded 6/1/11) (1)              | 4,000              | 4,391             
|Harris County
      Health Fac. Dev. Corp., St. Lukes Episcopal Hosp.  |                    |                   
|5.375%, 2/15/26
      (Prerefunded 8/15/11) (1)                        | 5,500              | 5,808             
|Harris County
      Health Fac. Dev. Corp., Texas Childrens Hosp.      |                    |                   
|5.25%,
      10/1/19                                                   | 5,000              | 5,165             
|Harris County
      Health Fac. Dev. Corp., Texas Childrens Hosp.      |                    |                   
|VRDN, 3.91%,
      10/1/29 (3)                                         | 200                | 200               
|Harris County
      Hosp. Dist., 7.40%, 2/15/10 (2)(6)                 | 150                | 157               
|Houston, GO,
      5.50%, 3/1/18 (7)                                   | 2,750              | 2,895             
|Houston Higher Ed.
      Fin. Corp., Rice Univ., 4.50%, 11/15/37       | 3,055              | 2,971             
|Houston Higher Ed.
      Fin. Corp., Rice Univ., 5.375%, 11/15/29      |                    |                   
|(Prerefunded
      11/15/09) (1)                                       | 11,450             | 11,973            
|Houston
      Independent School Dist., 5.00%, 7/15/20                 |                    |                   
|(Prerefunded
      7/15/11) (1)(7)                                     | 3,000              | 3,128             
|Houston Water
      & Sewer System, 5.75%, 12/1/18                     |                    |                   
|(Prerefunded
      12/1/12) (1)(2)                                     | 3,000              | 3,262             
|Lower Colorado
      River Auth., 6.00%, 5/15/12 (7)                   | 6,095              | 6,397             
|Sabine River
      Auth., PCR, TXU Energy, 6.15%, 8/1/22               | 2,850              | 3,049             
|Tarrant County
      Cultural Ed. Fac. Fin. Corp., Health Resources    |                    |                   
|5.00%,
      2/15/24                                                   | 12,615             | 12,966            
|Tarrant County
      Health Fac. Dev. Corp., Baylor Health Care        |                    |                   
|5.375%,
      11/15/21                                                 | 4,000              | 4,219             
|Texas, GO, 5.00%,
      4/1/28                                         | 3,000              | 3,126             
|                                                                       |                    | 100,224           
|Utah
      0.2%                                                        |                    |                   
|Utah Transit
      Auth., VRDN, 3.92%, 6/15/36                         | 3,000              | 3,000             
|                                                                       |                    | 3,000             
|Virginia
      2.1%                                                    |                    |                   
|Fairfax County,
      COP, 6.10%, 4/15/32                              | 10,000             | 11,062            
|Fairfax County
      Economic Dev. Auth., Goodwin House                |                    |                   
|5.125%,
      10/1/37                                                  | 4,500              | 4,570             
|Greater Richmond
      Convention Center, 6.125%, 6/15/29              |                    |                   
|(Prerefunded
      6/15/10) (1)                                        | 8,550              | 9,171             
|James City &
      County IDA, Williamsburg Landing                    |                    |                   
|6.125%,
      3/1/32                                                   | 2,000              | 2,109             
|Loudoun County
      IDA, Falcons Landing, 6.00%, 8/1/24               | 2,500              | 2,664             
|Virginia HDA,
      Single Family, 4.50%, 10/1/32                      | 4,645              | 4,535             
|Virginia
      Transportation Board, 5.25%, 5/15/20                    |                    |                   
|(Prerefunded
      5/15/11) (1)                                        | 4,620              | 4,855             
|                                                                       |                    | 38,966            
|Washington
      4.3%                                                  |                    |                   
|Chelan County
      Public Utility Dist. #1, Rock Island Hydro         |                    |                   
|Zero Coupon,
      6/1/18 (3)                                          | 10,100             | 6,262             
|Energy Northwest,
      5.00%, 7/1/24                                  | 5,000              | 5,257             
|Energy Northwest,
      Public Power Supply, 5.25%, 7/1/16             |                    |                   
|(Prerefunded
      7/1/07) (1)(7)                                      | 3,000              | 3,063             
|King County Public
      Hosp. Dist. #1, Valley Medical Center         |                    |                   
|5.75%, 9/1/20
      (2)                                                | 10,950             | 12,396            
|Millwood Estates,
      Snohomish County Housing Auth.                 |                    |                   
|5.50%,
      6/1/29                                                    | 3,750              | 3,781             
|Port of Seattle,
      5.50%, 2/1/26 (Prerefunded 8/1/10) (1)(3)       | 6,000              | 6,294             
|Seattle, Municipal
      Light & Power, 5.00%, 8/1/22 (7)              | 9,470              | 9,898             
|Tacoma Solid Waste
      Utility, 5.50%, 12/1/17                       |                    |                   
|(Prerefunded
      12/1/07) (1)(2)                                     | 1,860              | 1,894             
|Tacoma Solid Waste
      Utility, 5.50%, 12/1/17 (2)                   | 10,220             | 10,400            
|Washington, GO,
      5.70%, 10/1/15                                   | 14,000             | 15,325            
|Washington, Motor
      Vehicle Fuel Tax, 6.625%, 1/1/25               |                    |                   
|(Prerefunded
      1/1/10) (1)                                         | 6,100              | 6,517             
|                                                                       |                    | 81,087            
|West Virginia
      0.9%                                               |                    |                   
|Mason County, PCR,
      Appalachian Power, 5.50%, 10/1/22             | 7,000              | 7,326             
|West Virginia
      Building Commission, Court Fees, GO                |                    |                   
|5.375%, 7/1/18
      (2)                                               | 2,915              | 3,208             
|West Virginia
      Hosp. Fin. Auth., Oak Hill Hosp., 6.75%, 9/1/22    |                    |                   
|(Prerefunded
      9/1/10) (1)                                         | 5,000              | 5,476             
|                                                                       |                    | 16,010            
|Wisconsin
      0.7%                                                   |                    |                   
|Wisconsin HEFA,
      5.625%, 10/1/14 (Prerefunded 10/1/11) (1)        | 910                | 977               
|Wisconsin HEFA,
      5.625%, 10/1/15 (Prerefunded 10/1/11) (1)        | 1,005              | 1,079             
|Wisconsin HEFA,
      5.625%, 10/1/17 (Prerefunded 10/1/11) (1)        | 3,395              | 3,647             
|Wisconsin HEFA,
      United Health Group / Thedacare                  |                    |                   
|5.50%, 12/15/16
      (3)                                              | 6,540              | 6,723             
|                                                                       |                    | 12,426            
|Total Municipal
      Securities (Cost $1,768,544)                     |                    | 1,852,711         
|COMMON
      STOCKS 0.0%                                               |                    |                   
|UAL
      (11)                                                         | -                  | 17                
|Total Common
      Stocks (Cost $-)                                    |                    | 17                
|CONVERTIBLE
      BONDS 0.1%                                           |                    |                   
|UAL, 5.00%,
      1/25/21                                              | 1,125              | 1,229             
|Total Convertible
      Bonds (Cost $1,115)                            |                    | 1,229             
|OPTIONS
      PURCHASED 0.0%                                           |                    |                   
|Options on
      Futures 0.0%                                          |                    |                   
|U.S. Treasury
      Notes, Put, 6/16/07 @ $106 (11)                    | -                  | 5                 
|Total Options
      Purchased (Cost $108)                              |                    | 5                 
|Total Investments in Securities                                        |                    |                   
|99.3% of Net Assets (Cost $1,769,767)                                  | $                  | 1,853,962         

|     | Denominated in
      U.S. dollars unless otherwise noted.                                         
|----- | --------------------------------------------------------------------------------------------------
|(1)   | Prerefunded date
      is used in determining portfolio maturity.                                 
|(2)   | Insured by AMBAC
      Assurance Corp.                                                            
|(3)   | Insured by MBIA
      Insurance Corp.                                                             
|(4)   | All or a portion
      of this security is pledged to cover margin requirements on
      futures  
|      | contracts at May
      31, 2007.                                                                  
|(5)   | Insured by
      Financial Guaranty Insurance Company                                             
|(6)   | Escrowed to
      maturity                                                                        
|(7)   | Insured by
      Financial Security Assurance Inc.                                                
|(8)   | Insured by XL
      Capital Assurance Inc.                                                        
|(9)   | Insured by CIFG
      Assurance                                                                   
|(10)  | Security was
      purchased pursuant to Rule 144A under the Securities Act of
      1933         
|      | and may be resold
      in transactions exempt from registration only to qualified                
|      | institutional
      buyers -- total value of such securities at period end amounts
      to       
|      | $3,023 and
      represents 0.2% of net assets.                                                   
|(11)  | Non-income
      producing                                                                        
|CDA   | Community
      Development Administration                                                        
|COP   | Certificate of
      Participation                                                                
|EFA   | Educational
      Facility Authority                                                              
|GO    | General
      Obligation                                                                          
|HDA   | Housing
      Development Authority                                                               
|HEFA  | Health &
      Educational Facility Authority                                                     
|HFA   | Health Facility
      Authority                                                                   
|HFC   | Housing Finance
      Corp.                                                                       
|HFFA  | Health Facility
      Financing Authority                                                         
|HHEFA | Health &
      Higher Educational Facility Authority                                              
|IDA   | Industrial
      Development Authority/Agency                                                     
|IDRB  | Industrial
      Development Revenue Bond                                                         
|PCR   | Pollution Control
      Revenue                                                                   
|PFA   | Public Finance
      Authority/Agency                                                             
|STEP  | Stepped coupon
      bond for which the coupon rate of interest will adjust on
      specified    
|      | future
      date(s)                                                                              
|TECP  | Tax Exempt
      Commercial Paper                                                                 
|VR    | Variable Rate;
      rate shown is effective rate at period                                       
|VRDN  | Variable Rate
      Demand Note under which the holder has the right to sell the                  
|      | security to the
      issuer or the issuer 's agent at a predetermined price (generally
      par)
|      | on specified dates
      upon required notification; rate shown is effective rate at              
|      | period-end.                                                                                       

|Open Futures
      Contracts at May 31, 2007 were as follows:
|-------------------------------------------------------------
|($
      000s)                                               

|                                                  |            |   | Contract |   | Unrealized 
|------------------------------------------------- | ---------- | - | -------- | - | -----------
|                                                  | Expiration |   | Value    |   | Gain (Loss)
|Long, 150 U.S.
      Treasury ten year contracts, |            |   |          |   |            
|$116 par of 5.00%
      California                |            |   |          |   |            
|pledged as initial
      margin                   | 9/07       | $ | 15,956   | $ | (4)        
|Net payments
      (receipts) of variation        |            |   |          |   |            
|margin to
      date                              |            |   |          |   | 1          
|Variation
      margin receivable (payable)       |            |   |          |   |            
|on open futures
      contracts                   |            |   |          | $ | (3)        

The accompanying notes are an
integral part of this Portfolio of Investments.

|****T. Rowe Price Tax Free Income
      Fund**** |                 
|------------------------------------------------ | ----------------
|Unaudited                                        | May 31,
    2007
|****Notes To Portfolio of
      Investments****  |                 

NOTE 1 - SIGNIFICANT ACCOUNTING
POLICIES

T. Rowe Price Tax Free Income Fund, Inc.
(the fund), is registered under the Investment Company Act of 1940 (the 1940
Act) as a diversified, open-end management investment company. The fund seeks to
provide a high level of income exempt from federal income taxes by investing
primarily in long-term investment-grade municipal securities.

The accompanying portfolio of investments
was prepared in accordance with accounting principles generally accepted in the
United States of America, which require the use of estimates made by fund
management. Fund management believes that estimates and security valuations are
appropriate; however, actual results may differ from those estimates, and the
security valuations reflected in the portfolio of investments may differ from
the value the fund receives upon sale of the securities.

Valuation

The fund values its investments and
computes its net asset value per share at the close of the New York Stock
Exchange (NYSE), normally 4 p.m. ET, each day that the NYSE is open for
business. Debt securities are generally traded in the over-the-counter (OTC)
market. Securities with original maturities of one year or more are valued at
prices furnished by dealers who make markets in such securities or by an
independent pricing service, which considers yield or price of bonds of
comparable quality, coupon, maturity, and type, as well as prices quoted by
dealers who make markets in such securities. Securities with original maturities
of less than one year are valued at amortized cost in local currency, which
approximates fair value when combined with accrued interest.

Equity securities listed or regularly
traded on a securities exchange or in the OTC market are valued at the last
quoted sale price or, for certain markets, the official closing price at the
time the valuations are made, except for OTC Bulletin Board securities, which
are valued at the mean of the latest bid and asked prices. A security that is
listed or traded on more than one exchange is valued at the quotation on the
exchange determined to be the primary market for such security. Listed
securities not traded on a particular day are valued at the mean of the latest
bid and asked prices for domestic securities and the last quoted sale price for
international securities.

Options on futures contracts are valued at
the last sale price. Financial futures contracts are valued at closing
settlement prices.

Other investments, including restricted
securities, and those for which the above valuation procedures are inappropriate
or are deemed not to reflect fair value are stated at fair value as determined
in good faith by the T. Rowe Price Valuation Committee, established by the
fund's Board of Directors.

Investment Transactions

Investment transactions are accounted for
on the trade date.

New Accounting
Pronouncement

In September 2006, the Financial
Accounting Standards Board ("FASB") released the Statement of Financial
Accounting Standard No. 157 ("FAS 157"), Fair
Value Measurements. FAS 157 clarifies the
definition of fair value and establishes the framework for measuring fair value,
as well as proper disclosure of this methodology in the financial statements. It
will be effective for the fund's fiscal year beginning March 1, 2008. Management
is evaluating the effects of FAS 157; however, it is not expected to have a
material impact on the fund's net assets or results of operations.

NOTE 2 - INVESTMENT
TRANSACTIONS

Restricted Securities

The fund may invest in securities that are
subject to legal or contractual restrictions on resale. Although certain of
these securities may be readily sold, for example, under Rule 144A, others may
be illiquid, their sale may involve substantial delays and additional costs, and
prompt sale at an acceptable price may be difficult.

Futures Contracts

The fund may invest in futures contracts,
which provide for the future sale by one party and purchase by another of a
specified amount of a specific financial instrument at an agreed upon price,
date, time, and place. Risks arise from possible illiquidity of the futures
market and from movements in security values and/or interest rates.

Options

The fund may invest in call and put
options on futures contracts that give the holder the right to purchase or sell,
respectively, a particular futures contract at a specified price on
[oruntil]
a certain date. Risks arise from possible illiquidity of the options market and
from movements in underlying futures prices. Options are reflected in the
accompanying Portfolio of Investments at market value.

NOTE 3 - FEDERAL INCOME
TAXES

At May 31, 2007, the cost of investments
for federal income tax purposes was $1,853,962,000. Net unrealized gain
aggregated $86,475,000 at period-end, of which $91,403,000 related to
appreciated investments and $4,928,000 related to depreciated
investments.

Item 2. Controls and
Procedures.

(a) The registrant's principal executive
officer and principal financial officer have evaluated the registrant's
disclosure controls and procedures within 90 days of this filing and have
concluded that the registrant's disclosure controls and procedures were
effective, as of that date, in ensuring that information required to be
disclosed by the registrant in this Form N-Q was recorded, processed,
summarized, and reported timely.

(b) The registrant's principal executive
officer and principal financial officer are aware of no change in the
registrant's internal control over financial reporting that occurred during the
registrant's most recent fiscal quarter that has materially affected, or is
reasonably likely to materially affect, the registrant's internal control over
financial reporting.

Item 3. Exhibits.

Separate certifications by the
registrant's principal executive officer and principal financial officer,
pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 and required by Rule
30a-2(a) under the Investment Company Act of 1940, are attached.

SIGNATURES

Pursuant to
the requirements of the Securities Exchange Act of 1934 and the Investment
Company Act of 1940, the registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.

T. Rowe Price Tax-Free Income Fund,
Inc.

|By   | /s/ Edward C.
      Bernard      
|---- | ---------------------------------
|     | Edward C.
      Bernard          
|     | Principal Executive
      Officer
|    
|Date | July 24,
    2007                

Pursuant to
the requirements of the Securities Exchange Act of 1934 and the Investment
Company Act of 1940, this report has been signed below by the following persons
on behalf of the registrant and in the capacities and on the dates
indicated.

|By   | /s/ Edward C.
      Bernard      
|---- | ---------------------------------
|     | Edward C.
      Bernard          
|     | Principal Executive
      Officer
|    
|Date | July 24,
    2007                

|By   | /s/ Joseph A.
      Carrier      
|---- | ---------------------------------
|     | Joseph A.
      Carrier          
|     | Principal Financial
      Officer
|    
|Date | July 24,
    2007