Notes to Financial Statements
March 31, 1996
1. Summary of Significant Accounting Policies. GIT Tax-Free Trust (the "Trust") is registered with the Securities
and Exchange Commission under the Investment Company Act of 1940 as an open-end, diversified investment
management company. The Trust maintains six separate portfolios which invest principally in securities exempt
from federal income taxes, commonly known as "municipal" securities. The Arizona, Maryland, Missouri and
Virginia Portfolios (the "State Portfolios") invest solely in securities exempt from both federal and state income
taxes in their respective states. The National Portfolio (High Yield Portfolio prior to February 1, 1993) seeks
higher yields and invests in long- term securities. The Money Market Portfolio invests in short-term securities and
is priced according to the "penny rounding" method whereby the share price is rounded to the nearest cent to
maintain a stable share price of $1.00. The State and National Portfolios' price per share fluctuates as the market
value of the respective underlying portfolio of securities fluctuates.
Securities Valuation: Securities having maturities of 60 days or less are valued at amortized cost, which
approximates market value. Securities having longer maturities, for which market quotations are readily available
are valued at the mean between their bid and asked prices. Securities for which market quotations are not readily
available are valued at their fair value as determined in good faith by the trustees. Investment transactions are
recorded on the trade date. The cost of investments sold is determined on the identified cost basis for financial
statement and federal income tax purposes.
Investment Income: Interest income, net of amortization of premium and original issue discount, and other income
(if any) is accrued as earned.
Dividends: Net investment income, determined as gross investment income less expenses, is declared as a regular
dividend each business day. De