UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES

Investment Company Act file number 811-6239

Tax-Free Fund for Utah
(Exact name of Registrant as specified in charter)

380 Madison Avenue
New York, New York 10017
(Address of principal executive offices) (Zip code)

Joseph P. DiMaggio
380 Madison Avenue
New York, New York 10017
(Name and address of agent for service)

Registrant's telephone number, including area code: (212) 697-6666

Date of fiscal year end: 6/30

Date of reporting period: 6/30/04

FORM N-CSR

ITEM 1. REPORTS TO STOCKHOLDERS.

ANNUAL
REPORT

JUNE 30, 2004

[Logo of Tax-Free for Utah: a rectangle containing desert boulders with the sun
rising behind them]

TAX-FREE FUND FOR
UTAH

A TAX-FREE INCOME INVESTMENT

[Logo of the Aquila Group of Funds: and eagle's head]

ONE OF THE
AQUILA(SM) GROUP OF FUNDS

[Logo of Tax-Free for Utah: a rectangle containing desert boulders with the sun
rising behind them]

SERVING UTAH INVESTORS FOR MORE THAN A DECADE

TAX-FREE FUND FOR UTAH

ANNUAL REPORT

MANAGEMENT DISCUSSION OF FUND PERFORMANCE

Over the past twelve months, we have certainly seen our share of memorable
world events and economic changes. The official handing over of authority to an
independent Iraqi government and continued achievements in the ongoing war on
terror in Afghanistan have bolstered support for our brave men and women in the
nation's armed services. While the ongoing threat of terrorism on a national and
global scale remains a real concern, we have found the recent progress to be
heartening.

As we head into the second half of 2004, we are seeing the early signs of
an economic turnaround in our nation's economy. The most recently announced
report covering the month ended May 31, 2004, indicates an unemployment rate of
5.5%, with the first real improvement in the manufacturing sector in years.
Other measures of economic progress, such as retail sales, housing starts, and
industrial production are also pointing to a sustainable recovery. Historically,
as we see progress on the economic front, there is the fear that inflation will
rear its ugly head. In fact, increases in both the Producer Price Index ("PPI")
and the Consumer Price Index ("CPI") in recent months prompted the Federal
Reserve to raise the target for the federal funds rate in June to 1.25% from its
historically low level of 1.00%. This is the first rate hike seen since May
2000.

With this rise in rates, Tax-Free Fund For Utah experienced a decline in
share value (Net Asset Value) of approximately 3.88% for the 12-month period
ending June 30, 2004. The share value of the Fund's Class A Shares was $10.31 on
July 1, 2003 and $9.91 on June 30, 2004. A typical AA-rated general obligation
with a 15 year maturity has risen in yield from 4.22% to 4.61% over the 12-month
period ended June 30, 2004.

The end of accommodative actions by the Federal Reserve (the "Fed") and
Fed Chairman Alan Greenspan are popularly believed to be "preemptive moves" in
order to minimize the negative impact of inflation on the economy. While it may
take some time before the Fed's actions have the desired effect, we are hopeful
that the Fed will act swiftly and decisively in putting the threat of rising
inflation behind us.

Signs that the economy is perking along can be seen in recent stock market
index performances: the Dow Jones Industrial Average, is up 18.63% for the
twelve months ending June 30, 2004; the S & P 500 Index is up 19.11%; and the
NASDAQ Composite Index is up 26.79% for the same time period although recently
the stock market has had a rather lackluster performance.

Historically, as the economy has grown, commodity prices and interest rates
begin to rise. While these increases have been modest to date, we continue to
monitor any changes and position the Tax-Free Fund For Utah portfolio
accordingly. To address the concerns raised by an increase in the overall level
of interest rates, we take great care in the selection of the individual bonds
purchased for the Fund. We will seek to continue to add high quality,
intermediate maturity Utah municipal bonds that best meet our demanding
standards.

The investment objective of Tax-Free Fund For Utah is to provide as high a
level of double tax-exempt current income as is consistent with the preservation
of capital. We believe this objective continues to be successfully addressed by
our adherence to a discipline of solid fundamental, conservative portfolio
management ideals. The Fund continues to maintain an average quality rating of
"AA", with over 75% of the portfolio rated "AAA". The Fund's laddered maturity
structure helps us manage price volatility. The portfolio has an average life of
approximately 13.9 years and a modified duration of 5.75 years. We seek to
maintain a well-diversified portfolio, which currently consists of over 210
different issues, of which 100% are in Utah.

With the national and local economies showing improvement, we will remain
vigilant and do whatever is necessary as we strive to continue to meet the
Fund's investment objective. We intend to "stay the course" and manage the
portfolio by taking advantage of opportunities in the Utah marketplace that are
consistent with the high standards of the Fund.

PERFORMANCE REPORT

The following graph illustrates the value of $10,000 invested in the Class
A shares of Tax-Free Fund For Utah for the 10-year period ended June 30, 2004 as
compared with the Lehman Brothers Quality Intermediate Municipal Bond Index and
the Consumer Price Index (a cost of living index). The performance of each of
the other classes is not shown in the graph but is included in the table below.
It should be noted that the Lehman Index does not include any operating expenses
nor sales charges and being nationally oriented, does not reflect state specific
bond market performance.

[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]

Cost of Living Trust's Class A Shares Trust's Class A Shares Lehman Brothers
Index With Sales Charge Without Sales Charge Quality Intermediate
Municipal Bond Index

6/94 $10,000 $10,000 $ 9,600 $10,000
6/95 $10,304 $11,050 $10,606 $10,799
6/96 $10,588 $11,613 $11,146 $11,399
6/97 $10,831 $12,636 $12,128 $12,178
6/98 $11,014 $13,666 $13,117 $13,025
6/99 $11,230 $13,773 $13,220 $13,419
6/00 $11,649 $13,846 $13,290 $13,960
6/01 $12,027 $15,133 $14,526 $15,194
6/02 $12,155 $16,191 $15,540 $16,250
6/03 $12,412 $17,823 $17,107 $17,521
6/04 $12,818 $17,851 $17,134 $17,581

AVERAGE ANNUAL TOTAL RETURN
FOR PERIODS ENDED JUNE 30, 2004
------------------------------------------
SINCE
1 YEAR 5 YEARS 10 YEARS INCEPTION
------ ------- -------- ---------
Class A (7/24/92)
With Sales Charge...... (3.48)% 4.39% 5.53% 5.33%
Without Sales Charge... 0.54 5.24 5.97 5.69

Class C (5/21/96)
With CDSC.............. (1.12) 4.30 n/a 4.50
Without CDSC........... (0.16) 4.30 n/a 4.50

Class Y (5/21/96)
No Sales Charge........ 0.76 5.45 n/a 5.72

Lehman Index.............. 0.34 5.55 5.80 5.70* (Class A)
n/a 5.36** (Class C&Y)

Total return figures shown for the Fund reflect any change in price and assume
all distributions within the period were invested in additional shares. Returns
for Class A shares are calculated with and without the effect of the initial 4%
maximum sales charge. Returns for Class C shares are calculated with and without
the effect of the 1% contingent deferred sales charge (CDSC), imposed on
redemptions made within the first 12 months after purchase. Class Y shares are
sold without any sales charge. The rates of return will vary and the principal
value of an investment will fluctuate with market conditions. Shares, if
redeemed, may be worth more or less than their original cost. A portion of each
class's income may be subject to federal and state income taxes and/or the
federal alternative minimum tax. Past performance is not predictive of future
investment results.

* From commencement of operations on 7/24/92.

** From commencement of operations on 5/21/96.

KPMG

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Trustees and Shareholders of
Tax-Free Fund For Utah:

We have audited the accompanying statement of assets and liabilities of
Tax-Free Fund For Utah, including the schedule of investments, as of June 30,
2004, and the related statement of operations for the year then ended, the
statements of changes in net assets for each of the two years in the period then
ended, and the financial highlights for each of the five years in the period
then ended. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.

We conducted our audits in accordance with the standards of the Public
Company Accounting Oversight Board (United States). Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements and financial highlights. Our
procedures included confirmation of securities owned as of June 30, 2004, by
correspondence with the custodian. As to securities purchased or sold but not
yet received or delivered, we performed other appropriate auditing procedures.
An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.

In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
Tax-Free Fund For Utah as of June 30, 2004, the results of its operations for
the year then ended, the changes in its net assets for each of the two years in
the period then ended, and the financial highlights for each of the five years
in the period then ended, in conformity with U.S. generally accepted accounting
principles.

/s/ KPMG LLP

New York, New York
August 18, 2004

TAX-FREE FUND FOR UTAH
SCHEDULE OF INVESTMENTS
JUNE 30, 2004

RATING
FACE MOODY'S/
AMOUNT GENERAL OBLIGATION BONDS (15.2%) S&P VALUE
- ------------ --------------------------------------------------------- -------- ------------

CITY, COUNTY AND STATE (5.5%)
American Fork City, Utah
$ 610,000 5.00%, 12/01/14 FGIC Insured ......................... Aaa/NR $ 638,493
645,000 5.00%, 12/01/15 FGIC Insured ......................... Aaa/NR 674,289
Brian Head, Utah
405,000 6.50%, 03/15/24 ...................................... NR/NR* 443,511
Cedar City, Utah Special Improvement District
Assessment
235,000 5.05%, 09/01/10 ...................................... NR/NR* 239,839
215,000 5.20%, 09/01/11 ...................................... NR/NR* 220,272
Clearfield City, Utah
2,095,000 5.125%, 02/01/18 MBIA Insured ........................ Aaa/AAA 2,159,945
Coral Canyon, Utah Special Service District
580,000 5.70%, 07/15/18 ...................................... NR/NR* 588,938
Hurricane, Utah
295,000 5.40%, 11/01/09 Radian Insured ....................... NR/AA 320,184
St. George, Utah
100,000 5.375%, 08/01/21 FGIC Insured (pre-refunded) ......... Aaa/AAA 109,213
Salt Lake City, Utah
120,000 5.75%, 06/15/17 (pre-refunded) ....................... Aaa/NR 135,259
Washington County, Utah
1,250,000 5.00%, 10/01/22 MBIA Insured ......................... Aaa/NR 1,263,363
------------
6,793,306
------------
SCHOOL DISTRICT (9.7%)
Alpine, Utah School District
375,000 5.00%, 03/15/12 (pre-refunded) ....................... Aaa/NR 410,224
Carbon County, Utah School District
800,000 5.00%, 06/15/21 ...................................... Aaa/NR 813,576
Davis County, Utah School District
575,000 5.00%, 06/01/15 ...................................... Aaa/NR 603,238
250,000 5.10%, 06/01/16 ...................................... Aaa/NR 264,473
675,000 5.15%, 06/01/17 ...................................... Aaa/NR 714,460
Nebo, Utah School District
440,000 5.50%, 07/01/11 ...................................... Aaa/AAA 486,402
2,000,000 5.50%, 07/01/19 ...................................... Aaa/AAA 2,116,820
North Summit County, Utah School District
$ 760,000 5.00%, 02/01/23 ...................................... Aaa/NR $ 768,968
800,000 5.00%, 02/01/24 ...................................... Aaa/NR 801,856
Rich County, Utah School District
120,000 5.50%, 12/15/09 ...................................... NR/NR* 124,097
100,000 5.60%, 12/15/10 ...................................... NR/NR* 102,477
Salt Lake City, Utah School District
265,000 5.00%, 03/01/21 ...................................... Aaa/NR 269,873
Tooele County, Utah School District
1,375,000 5.25%, 06/01/17 (pre-refunded) ....................... Aaa/AAA 1,520,296
Weber County, Utah School District
750,000 5.00%, 06/15/18 ...................................... Aaa/NR 776,190
825,000 5.00%, 06/15/20 ...................................... Aaa/NR 850,162
Weber County, Utah School District Series B
1,485,000 5.00%, 06/15/21 ...................................... Aaa/NR 1,510,200
------------
12,133,312
------------
Total General Obligation Bonds ..................... 18,926,618
------------
REVENUE BONDS (82.2%)

EDUCATION (12.5%)
Salt Lake County, Utah Westminster College Project
115,000 5.05%, 10/01/10 ...................................... NR/BBB 121,210
100,000 5.50%, 10/01/19 ...................................... NR/BBB 101,785
1,000,000 5.75%, 10/01/27 ...................................... NR/BBB 1,009,610
Southern Utah University Revenue
375,000 6.30%, 06/01/16 ...................................... NR/NR* 389,280
University of Utah Revenue Refunding, (Biology
Research Facilities),
200,000 5.50%, 04/01/11 MBIA Insured ......................... Aaa/AAA 212,216
Utah State Board Regents Dixie State College
115,000 5.50%, 05/01/13 MBIA Insured ......................... Aaa/AAA 126,966
120,000 5.50%, 05/01/14 MBIA Insured ......................... Aaa/AAA 132,146
130,000 5.50%, 05/01/15 MBIA Insured ......................... Aaa/AAA 143,066
400,000 5.10%, 05/01/21 MBIA Insured ......................... Aaa/AAA 408,764
Utah State Board Regents Office Facility Revenue
$ 450,000 5.05%, 02/01/20 MBIA Insured ......................... Aaa/AAA $ 460,206
360,000 5.125%, 02/01/22 MBIA Insured ........................ Aaa/AAA 366,426
Utah State Board Regents Salt Lake Community College
1,260,000 5.50%, 06/01/16 FSA Insured .......................... Aaa/AAA 1,358,003
Utah State Board Regents University Utah-Auxiliary
& Campus Revenue
895,000 5.25%, 04/01/12 MBIA Insured ......................... Aaa/AAA 972,310
1,000,000 5.00%, 04/01/20 MBIA Insured ......................... Aaa/AAA 1,017,200
Utah State Board Regents University Utah Hospital
Revenue
1,055,000 5.50%, 08/01/16 FSA Insured .......................... Aaa/AAA 1,138,777
2,030,000 5.50%, 08/01/17 MBIA Insured ......................... Aaa/AAA 2,187,325
905,000 5.00%, 05/01/19 AMBAC Insured ........................ Aaa/AAA 930,286
3,595,000 5.00%, 08/01/19 MBIA Insured ......................... Aaa/AAA 3,678,656
Weber State University, Utah Revenue Student
Facilities System Series A
300,000 5.10%, 04/01/16 ...................................... NR/AA 315,912
425,000 5.25%, 04/01/19 ...................................... NR/AA 445,808
------------
15,515,952
------------
HEALTHCARE (2.8%)
Murray City, Utah Hospital Revenue
595,000 5.00%, 05/15/22 MBIA Insured ......................... Aaa/AAA 600,641
Salt Lake County, Utah Hospital Revenue - IHC
Hospitals, Inc.
500,000 5.50%, 05/15/13 AMBAC Insured ........................ Aaa/AAA 544,925
Utah County, Utah Hospital Revenue, IHC
Health Services
1,935,000 5.25%, 08/15/21 MBIA Insured ETM .................... Aaa/AAA 2,012,265
Utah State Board Regents Revenue University Utah
Hospital Revenue
310,000 5.00%, 08/01/21 MBIA Insured ......................... Aaa/AAA 314,411
------------
3,472,242
------------

HOUSING (4.3%)
Provo City, Utah Housing Authority
$ 500,000 5.80%, 07/20/22 GNMA Collateralized .................. Aaa/NR $ 515,145
Utah Housing Corporation Single Family Housing
70,000 5.25%, 07/01/23 AMT .................................. Aa2/AA 69,418
Utah Housing Corporation Single Family Mortgage
515,000 5.15%, 07/01/23 AMT ................................. Aaa/AAA 503,227
Utah State Housing Agency Housing Revenue
160,000 5.65%, 07/01/27 AMT .................................. Aa2/AA 162,952
Utah State Housing Corporation Single Family
Housing Revenue
965,000 5.125%, 07/01/24 AMT ................................. Aa3/AA- 945,382
Utah State Housing Finance Agency
35,000 6.35%, 07/01/12 AMBAC Insured AMT .................... Aaa/AAA 35,528
15,000 6.15%, 07/01/16 Senior Issue A-1 ..................... Aaa/AAA 15,320
175,000 5.30%, 07/01/18 AMT .................................. Aaa/AAA 175,534
135,000 5.00%, 07/01/18 AMT .................................. Aaa/AAA 135,414
400,000 5.40%, 07/01/20 AMT .................................. Aa2/AA 403,424
25,000 6.60%, 07/01/11 Series E-1 ........................... NR/AA 25,619
30,000 6.35%, 07/01/11 Mezzanine Series G-1 ................. AAA/NR 30,086
250,000 5.65%, 07/01/16 Series 1994C ......................... Aaa/AAA 255,350
95,000 5.40%, 07/01/16 AMT .................................. Aa2/AA 95,057
170,000 6.00%, 07/01/17 AMT .................................. Aaa/AAA 173,203
945,000 5.50%, 07/01/18 AMT .................................. Aa3/AA- 968,738
445,000 5.60%, 07/01/23 AMT .................................. Aa2/AA 447,697
West Jordan, Utah Multi-Family Housing
360,000 6.80%, 01/01/15 FSA Insured .......................... Aaa/AAA 363,449
------------
5,320,543
------------
INDUSTRIAL DEVELOPMENT & POLLUTION CONTROL (0.6%)
Sandy City, Utah Industrial Development, H Shirley
Wright Project, Refunding Bonds, LOC Olympus Bank
250,000 6.125%, 08/01/16 ..................................... NR/AAA 253,355
Utah County Environmental Improvement Revenue
435,000 5.05%, 11/01/17 ...................................... Baa1/BBB+ 460,056
------------
713,411
------------

LEASE (12.6%)
Lehi, Utah Municipal Building Lease Revenue,
Building Revenue
$ 1,020,000 5.50%, 06/15/15 AMBAC Insured ........................ Aaa/NR $ 1,136,076
Murray City, Utah Municipal Building Revenue
520,000 5.05%, 12/01/15 AMBAC Insured ........................ Aaa/NR 547,175
Salt Lake County, Utah Municipal Building Authority,
Lease Revenue
400,000 5.00%, 10/01/11 MBIA Insured (pre-refunded) .......... Aaa/AAA 432,488
1,070,000 6.00%, 10/15/14 ...................................... Aa1/AA 1,094,129
100,000 5.40%, 10/01/19 (pre-refunded) ....................... Aa1/AA+ 110,829
320,000 5.40%, 10/15/19 AMBAC Insured ........................ Aaa/AAA 344,323
3,900,000 5.20%, 10/15/20 AMBAC Insured ........................ Aaa/AAA 4,033,263
Sandy City, Utah Municipal Building Authority
700,000 5.60%, 06/15/15 AMBAC Insured ........................ Aaa/NR 765,268
Tooele City, Utah Municipal Building Lease Revenue
250,000 5.60%, 12/01/15 AMBAC Insured ........................ Aaa/AAA 271,910
Utah County, Utah Municipal Building Authority,
Lease Revenue
120,000 5.50%, 11/01/16 AMBAC Insured ........................ Aaa/NR 129,421
240,000 5.50%, 11/01/17 AMBAC Insured ........................ Aaa/NR 258,374
Utah State Building Ownership Authority
1,350,000 5.25%, 05/15/20 FSA Insured .......................... Aaa/AAA 1,402,852
1,080,000 5.00%, 05/15/25 ...................................... Aa1/AA+ 1,071,641
Washington County - Saint George, Utah Interlocal
Agency Revenue
1,000,000 5.125%, 12/01/17 AMBAC Insured ....................... NR/AAA 1,050,030
100,000 5.125%, 12/01/22 AMBAC Insured ....................... NR/AAA 100,863
Weber County, Utah Municipal Building Lease Revenue
1,500,000 5.75%, 12/15/19 MBIA Insured ......................... Aaa/AAA 1,639,185
West Bountiful, Utah Courthouse Revenue
410,000 5.00%, 05/01/19 ...................................... NR/A- 420,791
West Valley City, Utah
865,000 5.00%, 08/01/21 AMBAC Insured ........................ Aaa/AAA 878,745
------------
15,687,363
------------
TAX REVENUE (27.1%)
Bluffdale, Utah Sales Tax Revenue
2,110,000 5.50%, 08/01/23 ...................................... NR/NR* 2,129,813
Bountiful, Utah Special Improvement District
Special Assessment Revenue
$ 203,000 5.00%, 06/01/14 ...................................... NR/NR* $ 196,370
213,000 5.15%, 06/01/15 ...................................... NR/NR* 206,088
224,000 5.30%, 06/01/16 ...................................... NR/NR* 216,133
236,000 5.50%, 06/01/17 ...................................... NR/NR* 229,409
249,000 5.65%, 06/01/18 ...................................... NR/NR* 242,904
Brian Head, Utah Special Service Improvement
District Revenue
455,000 5.35%, 11/01/12 ...................................... NR/NR* 464,146
Cache County, Utah Sales Tax Revenue
500,000 5.00%, 12/15/14 FGIC Insured ......................... Aaa/AAA 530,725
670,000 5.00%, 12/15/16 FGIC Insured ......................... Aaa/AAA 703,373
600,000 5.00%, 12/15/17 FGIC Insured ......................... Aaa/AAA 624,282
510,000 5.00%, 12/15/18 FGIC Insured ......................... Aaa/AAA 526,646
830,000 5.00%, 12/15/19 FGIC Insured ......................... Aaa/AAA 852,402
Clearfield, Utah Sales Tax Revenue
590,000 5.00%, 07/01/18 FGIC Insured ......................... Aaa/AAA 612,927
620,000 5.00%, 07/01/19 FGIC Insured ......................... Aaa/AAA 637,620
650,000 5.00%, 07/01/20 FGIC Insured ......................... Aaa/AAA 664,632
Coral Canyon, Utah Special Service District
110,000 5.00%, 07/15/13 ...................................... NR/NR* 110,873
250,000 5.50%, 07/15/18 ...................................... NR/NR* 251,055
Davis County, Utah Sales Tax Revenue
1,470,000 5.15%, 10/01/18 AMBAC Insured ....................... NR/AAA 1,536,297
Jordanelle, Utah Special Service District
186,000 5.00%, 11/15/14 ...................................... NR/NR* 185,542
196,000 5.10%, 11/15/15 ...................................... NR/NR* 195,486
206,000 5.20%, 11/15/16 ...................................... NR/NR* 204,504
216,000 5.30%, 11/15/17 ...................................... NR/NR* 214,354
228,000 5.40%, 11/15/18 ...................................... NR/NR* 226,185
240,000 5.50%, 11/15/19 ...................................... NR/NR* 238,018
253,000 5.60%, 11/15/20 ...................................... NR/NR* 250,842
268,000 5.70%, 11/15/21 ...................................... NR/NR* 265,647
283,000 5.80%, 11/15/22 ...................................... NR/NR* 280,453
299,000 6.00%, 11/15/23 ...................................... NR/NR* 296,273
Jordanelle, Utah Special Service Improvement District
$ 400,000 8.00%, 10/01/11 ...................................... NR/NR* $ 416,596
Lehi, Utah Sales Tax
610,000 5.00%, 06/01/21 FSA Insured .......................... Aaa/AAA 622,877
790,000 5.00%, 06/01/24 FSA Insured .......................... Aaa/AAA 793,026
Mountain Regional Water District, Utah Special
Assessment Revenue
2,000,000 7.00%, 12/01/18 ...................................... NR/NR* 1,950,340
Mountain Regional Water, Utah Special Service District
2,000,000 5.00%, 12/15/20 MBIA Insured ......................... Aaa/AAA 2,046,800
Orem, Utah Special Assessment Revenue
96,000 5.00%, 08/01/15 ...................................... NR/NR* 94,396
101,000 5.15%, 08/01/16 ...................................... NR/NR* 99,128
106,000 5.30%, 08/01/17 ...................................... NR/NR* 104,328
112,000 5.50%, 08/01/18 ...................................... NR/NR* 111,237
118,000 5.65%, 08/01/19 ...................................... NR/NR* 117,757
Pleasant Grove City, Utah Sales Tax Revenue
410,000 5.25%, 12/01/17 MBIA Insured ......................... Aaa/AAA 439,598
Salt Lake City, Utah Sales Tax Revenue
490,000 5.25%, 02/01/12 ...................................... NR/AAA 537,359
265,000 5.25%, 02/01/13 ...................................... NR/AAA 288,609
1,320,000 5.25%, 02/01/15 ...................................... NR/AAA 1,413,456
100,000 5.25%, 02/01/17 ...................................... NR/AAA 105,551
Sandy City, Utah Sales Tax Revenue
520,000 5.00%, 09/15/18 AMBAC Insured ........................ NR/AAA 536,895
605,000 5.00%, 09/15/20 AMBAC Insured ........................ NR/AAA 617,596
South Jordan, Utah Sales Tax
570,000 5.00%, 08/15/15 AMBAC Insured ........................ Aaa/AAA 597,035
South Jordan, Utah Special Assignment
1,000,000 6.875%, 11/01/17 ..................................... NR/NR* 1,010,040
South Weber City, Utah
525,000 5.00%, 01/15/24 MBIA Insured ......................... Aaa/AAA 525,782
Utah Water Finance Agency Revenue
775,000 5.10%, 07/01/18 AMBAC Insured ........................ Aaa/NR 804,318
510,000 5.00%, 07/01/18 AMBAC Insured ........................ Aaa/NR 527,911
250,000 5.00%, 06/01/19 MBIA Insured ......................... Aaa/AAA 255,675
685,000 5.00%, 07/01/19 AMBAC Insured ........................ Aaa/NR 704,468
Wasatch County, Utah Building Authority
$ 130,000 5.00%, 10/01/15 ...................................... A3/NR $ 132,397
135,000 5.00%, 10/01/16 ...................................... A3/NR 137,591
Wasatch County, Utah Sales Tax Revenue
205,000 5.00%, 12/01/16 AMBAC Insured ........................ Aaa/AAA 215,170
210,000 5.00%, 12/01/17 AMBAC Insured ........................ Aaa/AAA 218,463
225,000 5.00%, 12/01/18 AMBAC Insured ........................ Aaa/AAA 232,472
Washington City, Utah Sales Tax Revenue
680,000 5.25%, 11/15/17 AMBAC Insured ........................ Aaa/AAA 725,519
Weber County Utah Sales Tax Revenue
385,000 5.00%, 07/01/23 AMBAC Insured ........................ Aaa/NR 388,885
West Valley City, Utah Sales Tax Revenue
800,000 5.50%, 07/15/17 MBIA Insured ......................... Aaa/AAA 859,168
250,000 5.00%, 07/15/20 AMBAC Insured ........................ Aaa/AAA 255,970
130,000 5.00%, 07/15/21 MBIA Insured ......................... Aaa/AAA 132,231
1,400,000 6.00%, 03/01/24 ...................................... NR/A- 1,459,668
Woodland Hills, Utah Special Assessment Revenue
94,000 5.50%, 08/01/09 ...................................... NR/NR* 94,989
224,000 5.50%, 08/01/10 ...................................... NR/NR* 226,753
236,000 5.50%, 08/01/11 ...................................... NR/NR* 239,297
249,000 5.50%, 08/01/12 ...................................... NR/NR* 251,575
263,000 5.50%, 08/01/13 ...................................... NR/NR* 265,044
------------
33,648,969
------------
Transportation (0.9%)
Utah Transit Authority Sales Tax & Transportation
Revenue
1,000,000 5.40%, 12/15/16 FSA Insured NR/AAA 1,081,040
100,000 5.00%, 06/15/21 FSA Insured Aaa/AAA 101,998
------------
1,183,038
------------
UTILITY (9.4%)
Intermountain Power Agency Utilities Light & Power
Service, Utah
450,000 5.00%, 07/01/12 MBIA Insured ETM ..................... Aaa/AAA 456,026
1,470,000 5.25%, 07/01/15 MBIA Insured ......................... Aaa/AAA 1,590,290
Intermountain Power Agency Utilities Light & Power
Service, Utah (continued)
$ 90,000 5.00%, 07/01/16 ...................................... A1/A+ $ 92,651
300,000 5.00%, 07/01/18 FSA Insured .......................... Aaa/AAA 310,536
1,380,000 5.00%, 07/01/19 MBIA Insured ......................... Aaa/AAA 1,411,492
135,000 5.50%, 07/01/20 ETM .................................. A1/A+ 137,641
2,380,000 5.00%, 07/01/21 ...................................... A1/A+ 2,401,349
445,000 5.00%, 07/01/23 FSA Insured .......................... Aaa/AAA 448,030
Manti City, Utah Electric System Revenue
603,000 5.75%, 02/01/17 ...................................... NR/NR* 605,400
Murray City, Utah Utility Electric Revenue
400,000 5.625%, 06/01/18 AMBAC Insured ....................... Aaa/NR 431,596
Salem, Utah Electric Revenue
125,000 5.30%, 11/01/07 ...................................... NR/NR* 131,426
130,000 5.35%, 11/01/08 ...................................... NR/NR* 137,684
140,000 5.40%, 11/01/09 ...................................... NR/NR* 148,817
Southern Utah Valley Power System Revenue
210,000 5.25%, 09/15/13 MBIA Insured ......................... NR/AAA 229,089
225,000 5.25%, 09/15/14 MBIA Insured ......................... NR/AAA 244,796
235,000 5.25%, 09/15/15 MBIA Insured ......................... NR/AAA 253,798
185,000 5.125%, 09/15/21 MBIA Insured ........................ NR/AAA 189,523
Springville, Utah Electric Revenue
550,000 5.60%, 03/01/09 ...................................... Baa1/NR 588,918
Utah Assessed Municipal Power System Revenue
790,000 5.25%, 12/01/09 ...................................... NR/A- 851,446
1,000,000 5.00%, 04/01/21 FSA Insured .......................... Aaa/AAA 1,016,920
------------
11,677,428
------------
WATER AND SEWER (12.0%)
Ashley Valley, Utah
310,000 9.50%, 01/01/08 AMBAC Insured ........................ Aaa/AAA 345,743
Eagle Mountain, Utah Water and Sewer
750,000 5.80%, 11/15/16 ACA Insured .......................... NR/A 782,768
Granger and Hunter, Utah Improvement District
Water and Sewer
$ 350,000 5.00%, 03/01/18 FSA Insured .......................... Aaa/NR $ 359,132
Murray City, Utah Sewer and Water Revenue
465,000 5.00%, 10/01/17 AMBAC Insured ........................ Aaa/NR 485,241
390,000 5.00%, 10/01/18 AMBAC Insured ........................ Aaa/NR 403,982
440,000 5.00%, 10/01/19 AMBAC Insured ........................ Aaa/NR 452,760
North Davis County, Utah Sewer District
1,330,000 5.375%, 03/01/18 AMBAC Insured (pre-refunded) ........ Aaa/NR 1,476,287
1,350,000 5.00%, 03/01/21 AMBAC Insured ........................ Aaa/NR 1,374,759
150,000 5.125%, 03/01/22 AMBAC Insured (pre-refunded) ........ Aaa/NR 164,021
Riverton, Utah Water Revenue
100,000 5.35%, 09/01/15 FGIC Insured (pre-refunded) .......... Aaa/NR 110,915
Salt Lake City, Utah Metropolitan Water Revenue
1,200,000 5.375%, 07/01/24 AMBAC Insured (pre-refunded) ........ Aaa/AAA 1,322,892
125,000 5.375%, 07/01/29 AMBAC Insured (pre-refunded) ........ Aaa/AAA 137,801
Salt Lake City, Utah Water and Sewer Revenue
500,000 5.75%, 02/01/13 AMBAC Insured ........................ Aaa/AAA 511,450
675,000 5.00%, 02/01/19 FSA Insured .......................... Aaa/AAA 695,162
845,000 5.00%, 02/01/20 FSA Insured .......................... Aaa/AAA 864,984
Salt Lake & Sandy, Utah Water District
1,000,000 5.00%, 07/01/20 AMBAC Insured ........................ Aaa/NR 1,024,490
Spanish Fork City, Utah Water Revenue
55,000 5.50%, 06/01/17 FSA Insured (pre-refunded) ........... Aaa/NR 61,688
195,000 5.50%, 06/01/17 FSA Insured .......................... Aaa/NR 211,618
Utah Water Finance Agency Revenue
100,000 5.00%, 06/01/14 MBIA Insured ......................... Aaa/AAA 104,755
200,000 5.25%, 07/01/16 AMBAC Insured ........................ Aaa/NR 214,684
250,000 5.375%, 09/01/17 AMBAC Insured ....................... Aaa/NR 269,750
310,000 5.00%, 10/01/17 AMBAC Insured ........................ Aaa/NR 322,279
500,000 5.25%, 10/01/18 AMBAC Insured ........................ Aaa/NR 535,125
465,000 5.00%, 10/01/20 AMBAC Insured ........................ Aaa/NR 474,723
285,000 5.30%, 10/01/23 MBIA Insured ......................... Aaa/AAA 294,129
450,000 5.40%, 10/01/24 AMBAC Insured ........................ Aaa/AAA 466,974
250,000 5.50%, 10/01/29 AMBAC Insured ........................ Aaa/AAA 258,348
Weber-Box Elder, Utah Conservation District Water
Revenue
$ 200,000 6.45%, 11/01/14 (pre-refunded) ....................... Baa3/NR $ 232,316
200,000 6.50%, 11/01/19 (pre-refunded) ....................... Baa3/NR 232,878
335,000 6.90%, 11/01/20 (pre-refunded) ....................... Baa3/NR 397,591
White City, Utah Water Improvement
300,000 5.90%, 02/01/22 AMBAC Insured ........................ Aaa/AAA 319,155
------------
14,908,400
------------
Total Revenue Bonds 102,127,346
------------

Total Investments (cost $119,453,787**) 97.4% 121,053,964
Other assets less liabilities 2.6 3,242,706
-------- ------------
Net Assets 100.0% $124,296,670
======== ============

* Any security not rated (NR) by either credit
rating service must be determined by the
Manager to have sufficient quality to be
ranked in the top four ratings if a credit
rating were to be assigned by a rating
service.

** See note 4.

PORTFOLIO ABBREVIATIONS:
ACA - ACA Financial Guaranty Corp.
AMBAC - American Municipal Bond Assurance Corp.
AMT - Alternative Minimum Tax
ETM - Escrowed to Maturity
FGIC - Financial Guaranty Insurance Co.
FSA - Financial Security Assurance
GNMA - Government National Mortgage Association
LOC - Letter of Credit
MBIA - Municipal Bond Investors Assurance

See accompanying notes to financial statements.

TAX-FREE FUND FOR UTAH
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2004

ASSETS
Investments at value (cost $119,453,787) ................................................ $ 121,053,964
Cash .................................................................................... 29,485
Receivable for Fund shares sold ......................................................... 2,659,090
Interest receivable ..................................................................... 1,832,095
Receivable for investment securities sold ............................................... 560,000
Other assets ............................................................................ 7,816
-------------
Total assets ............................................................................ 126,142,450
-------------
LIABILITIES
Payable for investment securities purchased ............................................. 813,593
Payable for Fund shares redeemed ........................................................ 760,918
Dividends payable ....................................................................... 133,240
Distribution fees payable ............................................................... 85,888
Management fees payable ................................................................. 4,010
Accrued expenses ........................................................................ 48,131
-------------
Total liabilities ....................................................................... 1,845,780
-------------
NET ASSETS ................................................................................. $ 124,296,670
=============
Net Assets consist of:
Capital Stock - Authorized an unlimited number of shares, par value $.01 per share ...... $ 125,360
Additional paid-in capital .............................................................. 125,759,573
Net unrealized appreciation on investments (note 4) ..................................... 1,600,177
Accumulated net realized loss on investments ............................................ (3,080,248)
Distributions in excess of net investment income ........................................ (108,192)
-------------
$ 124,296,670
=============
CLASS A
Net Assets .............................................................................. $ 94,103,202
=============
Capital shares outstanding .............................................................. 9,492,043
=============
Net asset value and redemption price per share .......................................... $ 9.91
=============
Offering price per share (100/96 of $9.91 adjusted to nearest cent) ..................... $ 10.32
=============
CLASS C
Net Assets .............................................................................. $ 21,960,647
=============
Capital shares outstanding .............................................................. 2,216,030
=============
Net asset value and offering price per share ............................................ $ 9.91
=============
Redemption price per share (*a charge of 1% is imposed on the redemption
proceeds of the shares, or on the original price, whichever is lower, if redeemed
during the first 12 months after purchase) ........................................... $ 9.91*
=============
CLASS Y
Net Assets .............................................................................. $ 8,232,821
=============
Capital shares outstanding .............................................................. 827,895
=============
Net asset value, offering and redemption price per share ................................ $ 9.94
=============

See accompanying notes to financial statements.

TAX-FREE FUND FOR UTAH
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED JUNE 30, 2004

INVESTMENT INCOME:

Interest income ............................................ $ 5,421,421

Expenses:

Management fee (note 3) .................................... $ 580,171
Distribution and service fees (note 3) ..................... 387,705
Transfer and shareholder servicing agent fees .............. 52,146
Trustees' fees and expenses (note 8) ....................... 48,314
Fund accounting fee ........................................ 47,997
Legal fees ................................................. 38,867
Shareholders' reports and proxy statements ................. 25,044
Auditing and tax fees ...................................... 22,400
Custodian fees ............................................. 13,370
Registration fees and dues ................................. 6,705
Miscellaneous .............................................. 32,540
-----------
Total expenses ............................................. 1,255,259

Management fee waived (note 3) ............................. (547,293)
Expenses paid indirectly (note 6) .......................... (9,374)
-----------
Net expenses ............................................... 698,592
-----------
Net investment income ...................................... 4,722,829

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:

Net realized gain (loss) from securities transactions ...... (365,387)
Change in unrealized appreciation on investments ........... (3,968,215)
-----------

Net realized and unrealized gain (loss) on investments ..... (4,333,602)
-----------
Net increase in net assets resulting from operations ............ $ 389,227
===========

See accompanying notes to financial statements.

TAX-FREE FUND FOR UTAH
STATEMENTS OF CHANGES IN NET ASSETS

YEAR ENDED YEAR ENDED
JUNE 30, 2004 JUNE 30, 2003
------------- -------------

OPERATIONS:
Net investment income ............................................... $ 4,722,829 $ 3,389,214
Net realized gain (loss) from securities transactions ............... (365,387) (44,103)
Change in unrealized appreciation on investments .................... (3,968,215) 3,818,783
------------- -------------
Change in net assets from operations ............................. 389,227 7,163,894
------------- -------------

DISTRIBUTIONS TO SHAREHOLDERS (NOTE 10):
Class A Shares:
Net investment income ............................................... (4,242,881) (3,169,522)

Class C Shares:
Net investment income ............................................... (733,873) (377,988)

Class Y Shares:
Net investment income ............................................... (83,837) (11,237)
------------- -------------
Change in net assets from distributions .......................... (5,060,591) (3,558,747)
------------- -------------

CAPITAL SHARE TRANSACTIONS (NOTE 7):
Proceeds from shares sold ........................................... 57,964,198 41,782,674
Reinvested dividends and distributions .............................. 2,768,847 1,882,383
Cost of shares redeemed ............................................. (34,397,531) (7,318,351)
------------- -------------
Change in net assets from capital share transactions ............. 26,335,514 36,346,706
------------- -------------
Change in net assets ............................................. 21,664,150 39,951,853

NET ASSETS:
Beginning of period ................................................. 102,632,520 62,680,667
------------- -------------
End of period* ...................................................... $ 124,296,670 $ 102,632,520
============= =============

* Includes distributions in excess of net investment income of: ..... $ (108,192) $ (70,824)
============= =============

See accompanying notes to financial statements.

TAX-FREE FUND FOR UTAH
NOTES TO FINANCIAL STATEMENTS

1. ORGANIZATION

Tax-Free Fund For Utah (the "Fund"), a non-diversified, open-end
investment company, was organized on December 12, 1990 as a Massachusetts
business trust and commenced operations on July 24, 1992. The Fund is authorized
to issue an unlimited number of shares and, since its inception to May 21, 1996,
offered only one class of shares. On that date, the Fund began offering two
additional classes of shares, Class C and Class Y shares. All shares outstanding
prior to that date were designated as Class A shares and are sold with a
front-payment sales charge and bear an annual distribution fee. Class C shares
are sold with a level-payment sales charge with no payment at time of purchase
but level service and distribution fees from date of purchase through a period
of six years thereafter. A contingent deferred sales charge of 1% is assessed to
any Class C shareholder who redeems shares of this Class within one year from
the date of purchase. Class C Shares, together with a pro-rata portion of all
Class C Shares acquired through reinvestment of dividends and other
distributions paid in additional Class C Shares, automatically convert to Class
A Shares after 6 years. The Class Y shares are only offered to institutions
acting for an investor in a fiduciary, advisory, agency, custodian or similar
capacity and are not offered directly to retail investors. Class Y shares are
sold at net asset value without any sales charge, redemption fees, contingent
deferred sales charge or distribution or service fees. On October 31, 1997, the
Fund established Class I shares, which are offered and sold only through
financial intermediaries and are not offered directly to retail investors. As of
the report date, there were no Class I shares outstanding. All classes of
shares, represent interests in the same portfolio of investments and are
identical as to rights and privileges but differ with respect to the effect of
sales charges, the distribution and/or service fees borne by each class,
expenses specific to each class, voting rights on matters affecting a single
class and the exchange privileges of each class.

2. SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies followed by
the Fund in the preparation of its financial statements. The policies are in
conformity with accounting principles generally accepted in the United States of
America for investment companies.

a) PORTFOLIO VALUATION: Municipal securities which have remaining maturities
of more than 60 days are valued each business day based upon information
provided by a nationally prominent independent pricing service and
periodically verified through other pricing services. In the case of
securities for which market quotations are readily available, securities
are valued by the pricing service at the mean of bid and asked quotations.
If market quotations or a valuation from the pricing service is not readily
available, the security is valued at fair value determined under procedures
established by and under the general supervision of the Board of Trustees.
Securities which mature in 60 days or less are valued at amortized cost if
their term to maturity at purchase is 60 days or less, or by amortizing
their unrealized appreciation or depreciation on the 61st day prior to
maturity, if their term to maturity at purchase exceeds 60 days.

b) SECURITIES TRANSACTIONS AND RELATED INVESTMENT INCOME: Securities
transactions are recorded on the trade date. Realized gains and losses
from securities transactions are reported on the identified cost basis.
Interest income is recorded daily on the accrual basis and is adjusted for
amortization of premium and accretion of original issue and market
discount.

c) FEDERAL INCOME TAXES: It is the policy of the Fund to qualify as a
regulated investment company by complying with the provisions of the
Internal Revenue Code applicable to certain investment companies. The Fund
intends to make distributions of income and securities profits sufficient
to relieve it from all, or substantially all, Federal income and excise
taxes.

d) MULTIPLE CLASS ALLOCATIONS: All income, expenses (other than
class-specific expenses), and realized and unrealized gains or losses are
allocated daily to each class of shares based on the relative net assets
of each class. Class-specific expenses, which include distribution and
service fees and any other items that are specifically attributed to a
particular class, are charged directly to such class.

e) USE OF ESTIMATES: The preparation of financial statements in conformity
with accounting principles generally accepted in the United States of
America requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements
and the reported amounts of increases and decreases in net assets from
operations during the reporting period. Actual results could differ from
those estimates.

3. FEES AND RELATED PARTY TRANSACTIONS

a) MANAGEMENT ARRANGEMENTS:

Aquila Investment Management LLC (the "Manager"), a wholly owened
subsidiary of Aquila Management Corporation, the Fund's founder and sponsor,
serves as the Investment Adviser for the Fund under an Advisory and
Administration Agreement with the Fund. The Manager provides all investment
management and administrative services to the Fund. The Manager's services
include providing the office of the Fund and all related services as well as
managing relationships with all the various support organizations to the Fund
such as the shareholder servicing agent, custodian, legal counsel, fund
accounting agent, auditors and distributor. For its services, the Manager is
entitled to receive a fee which is payable monthly and computed as of the close
of business each day at the annual rate of 0.50 of 1% on the Fund's average net
assets.

For the year ended June 30, 2004, the Fund incurred management fees of
$580,171 of which $547,293 was voluntarily waived. Such waivers are voluntary
and can be terminated in the future at the Manager's discretion. However, the
Manager has indicated that it intends to continue waiving fees as necessary in
order that the Fund will remain competitive.

Specific details as to the nature and extent of the services provided by
the Manager are more fully defined in the Fund's Prospectus and Statement of
Additional Information.

b) DISTRIBUTION AND SERVICE FEES:

The Fund has adopted a Distribution Plan (the "Plan") pursuant to Rule
12b-1 (the "Rule") under the Investment Company Act of 1940. Under one part of
the Plan, with respect to Class A Shares, the Fund is authorized to make
distribution fee payments to broker-dealers or others ("Qualified Recipients")
selected by Aquila Distributors, Inc. (the "Distributor") including, but not
limited to, any principal underwriter of the Fund, with which the Distributor
has entered into written agreements contemplated by the Rule and which have
rendered assistance in the distribution and/or retention of the Fund's shares or
servicing of shareholder accounts. The Fund makes payment of this service fee at
the annual rate of 0.20% of the Fund's average net assets represented by Class A
Shares. For the year ended June 30, 2004 distribution fees on Class A Shares
amounted to $188,918, of which the Distributor retained $4,033.

Under another part of the Plan, the Fund is authorized to make payments
with respect to Class C Shares to Qualified Recipients which have rendered
assistance in the distribution and/or retention of the Fund's Class C shares or
servicing of shareholder accounts. These payments are made at the annual rate of
0.75% of the Fund's average net assets represented by Class C Shares and for the
year ended June 30, 2004, amounted to $149,090. In addition, under a Shareholder
Services Plan, the Fund is authorized to make service fee payments with respect
to Class C Shares to Qualified Recipients for providing personal services and/or
maintenance of shareholder accounts. These payments are made at the annual rate
of 0.25% of the Fund's average net assets represented by Class C Shares and for
the year ended June 30, 2004 amounted to $49,697. The total of these payments
with respect to Class C Shares amounted to $198,787, of which the Distributor
retained $20,848.

Specific details about the Plans are more fully defined in the Fund's
Prospectus and Statement of Additional Information.

Under a Distribution Agreement, the Distributor serves as the exclusive
distributor of the Fund's shares. Through agreements between the Distributor and
various broker-dealer firms ("dealers"), the Fund's shares are sold primarily
through the facilities of these dealers having offices within Utah, with the
bulk of sales commissions inuring to such dealers. For the year ended June 30,
2004, total commissions on sales of Class A Shares amounted to $555,617, of
which the Distributor received $48,225.

C) OTHER RELATED PARTY TRANSACTIONS:

For the year ended June 30, 2004, the Fund incurred $38,157 of legal fees
allocable to Hollyer Brady Barrett & Hines LLP counsel to the Fund for legal
services in conjunction with the Fund's ongoing operations. The Secretary of the
Fund is a Partner of Hollyer Brady Barrett & Hines LLP.

4. PURCHASES AND SALES OF SECURITIES

During the year ended June 30, 2004, purchases of securities and proceeds
from the sales of securities aggregated $44,653,490 and $18,248,223,
respectively.

At June 30, 2004, the aggregate tax cost for all securities was
$119,428,738. At June 30, 2004 the aggregate gross unrealized appreciation for
all securities in which there is an excess of market value over tax cost
amounted to $2,652,363 and aggregate gross unrealized depreciation for all
securities in which there is an excess of tax cost over market value amounted to
$1,027,137, for a net unrealized appreciation of $1,625,226.

5. PORTFOLIO ORIENTATION

Since the Fund invests principally and may invest entirely in double
tax-free municipal obligations of issuers within Utah, it is subject to possible
risks associated with economic, political, or legal developments or industrial
or regional matters specifically affecting Utah and whatever effects these may
have upon Utah issuers' ability to meet their obligations.

The Fund is also permitted to invest in tax-free municipal obligations of
issuers in other states and U.S. territories meeting comparable quality
standards and providing income which is exempt from both regular Federal and
Utah income taxes. The general policy of the Fund is to invest in such
securities only when comparable securities of Utah issuers are not available in
the market. At June 30, 2004, the Fund had all of its net assets invested in
State of Utah municipal issues.

6. EXPENSES

The Fund has negotiated an expense offset arrangement with its custodian
wherein it receives credit toward the reduction of custodian fees and other Fund
expenses whenever there are uninvested cash balances. The Statement of
Operations reflects the total expenses before any offset, the amount of offset
and the net expenses. It is the general intention of the Fund to invest, to the
extent practicable, some or all of cash balances in income-producing assets
rather than leave cash on deposit.

7. CAPITAL SHARE TRANSACTIONS

Transactions in Capital Shares of the Fund were as follows:

YEAR ENDED YEAR ENDED
JUNE 30, 2004 JUNE 30, 2003
----------------------------- -----------------------------
SHARES AMOUNT SHARES AMOUNT
------ ------ ------ ------

CLASS A SHARES:
Proceeds from shares sold ...... 3,786,483 $ 38,300,080 3,092,149 $ 31,209,525
Reinvested distributions ....... 227,183 2,293,880 165,136 1,665,186
Cost of shares redeemed ........ (2,800,659) (28,028,537) (657,050) (6,646,533)
------------ ------------ ------------ ------------
Net change .................. 1,213,007 12,565,423 2,600,235 26,228,178
------------ ------------ ------------ ------------

CLASS C SHARES:
Proceeds from shares sold ...... 1,087,383 11,056,567 957,135 9,712,558
Reinvested distributions ....... 42,247 426,325 20,771 209,789
Cost of shares redeemed ........ (507,597) (5,107,857) (63,577) (645,935)
------------ ------------ ------------ ------------
Net change .................. 622,033 6,375,035 914,329 9,276,412
------------ ------------ ------------ ------------

CLASS Y SHARES:
Proceeds from shares sold ...... 864,901 8,607,551 84,124 860,591
Reinvested distributions ....... 4,819 48,642 720 7,408
Cost of shares redeemed ........ (127,200) (1,261,137) (2,553) (25,883)
------------ ------------ ------------ ------------
Net change .................. 742,520 7,395,056 82,291 842,116
------------ ------------ ------------ ------------
Total transactions in Fund
shares ......................... 2,577,560 $ 26,335,514 3,596,855 $ 36,346,706
============ ============ ============ ============

8. TRUSTEES' FEES AND EXPENSES

During the fiscal year ended June 30, 2004 there were seven trustees, two
of whom were affiliated with the Manager and are not paid any trustee fees. Each
Trustee's fee paid during the year was at the annual rate of $4,950 for carrying
out their responsibilities and attendance at regularly scheduled Board Meetings.
If additional or special meetings are scheduled for the Fund, separate meeting
fees are paid for each such meeting to those Trustees in attendance. The Fund
also reimburses Trustees for expenses such as travel, accommodations, and meals
incurred in connection with attendance at regularly scheduled or special Board
Meetings and at the Annual Meeting of Shareholders. For the fiscal year ended
June 30, 2004 such reimbursements averaged approximately $3,613 per Trustee.

9. SECURITIES TRADED ON A WHEN-ISSUED BASIS

The Fund may purchase or sell securities on a when-issued basis.
When-issued transactions arise when securities are purchased or sold by the Fund
with payment and delivery taking place in the future in order to secure what is
considered to be an advantageous price and yield to the Fund at the time of
entering into the transaction. Beginning on the date the Fund enters into a
when-issued transaction, cash or other liquid securities are segregated in an
amount equal to or greater than the amount of the when-issued transaction. These
transactions are subject to market fluctuations and their current value is
determined in the same manner as for other securities.

10. INCOME TAX INFORMATION AND DISTRIBUTIONS

The Fund declares dividends daily from net investment income and makes
payments monthly in additional shares at the net asset value per share, in cash,
or in a combination of both, at the shareholder's option. Net realized capital
gains, if any, are distributed annually and are taxable.

The Fund intends to maintain, to the maximum extent possible, the
tax-exempt status of interest payments received from portfolio municipal
securities in order to allow dividends paid to shareholders from net investment
income to be exempt from regular Federal and State of Utah income taxes.
However, due to differences between financial statement reporting and Federal
income tax reporting requirements, distributions made by the Fund may not be the
same as the Fund's net investment income, and/or net realized securities gains.
In this regard, the Fund credited distributions in excess of net investment
income in the amount of $300,394 and debited additional paid-in capital in the
amount of $300,394 at June 30, 2004. This adjustment had no impact on the Fund's
aggregate net assets at June 30, 2004. Further, a small portion of the dividends
may, under some circumstances, be subject to taxes at ordinary income rates.

At June 30, 2004, the Fund had a capital loss carryover of $2,939,997 of
which $211,315 expires on June 30, 2008, $2,459,398 expires on June 30, 2009,
$15,469 expires on June 30, 2011, and $253,815 expires on June 30, 2012. This
carryover is available to offset future net realized gains on securities
transactions to the extent provided for in the Internal Revenue Code. To the
extent that this loss is used to offset future realized capital gains, it is
probable that the gains so offset will not be distributed. In addition, the Fund
had $140,250 of capital losses realized after October 31, 2003 which were
deferred for tax purposes to the first day of the following fiscal year.

The tax character of distributions:

Year Ended June 30,
2004 2003
------------ ------------
Net tax-exempt income $ 4,758,187 $ 3,419,849
Ordinary income 302,404 138,898
------------ ------------
$ 5,060,591 $ 3,558,747
============ ============

As of June 30, 2004, the components of distributable earnings on a tax
basis were as follows:

Accumulated net realized loss $ (3,080,248)
Unrealized appreciation 1,625,226
------------
$ (1,455,022)
============

At June 30, 2004, the difference between book basis and tax basis
unrealized appreciation was attributable primarily to the treatment of accretion
of discounts and amortization of premiums.

TAX-FREE FUND FOR UTAH
FINANCIAL HIGHLIGHTS

FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD

CLASS A
-------------------------------------------------------
YEAR ENDED JUNE 30,
-------------------------------------------------------
2004 2003 2002 2001 2000
------- ------- ------- ------- -------

Net asset value, beginning of period .................. $ 10.31 $ 9.85 $ 9.65 $ 9.35 $ 9.88
------- ------- ------- ------- -------
Income (loss) from investment operations:
Net investment income .............................. 0.43++ 0.44+ 0.46+ 0.48+ 0.48+
Net gain (loss) on securities (both realized
and unrealized) ................................. (0.37) 0.48 0.22 0.32 (0.44)
------- ------- ------- ------- -------
Total from investment operations ................... 0.06 0.92 0.68 0.80 0.04
------- ------- ------- ------- -------
Less distributions (note 10):
Dividends from net investment income ............... (0.46) (0.46) (0.48) (0.50) (0.51)
Distributions from capital gains ................... -- -- -- -- (0.06)
------- ------- ------- ------- -------
Total distributions ................................ (0.46) (0.46) (0.48) (0.50) (0.57)
------- ------- ------- ------- -------
Net asset value, end of period ........................ $ 9.91 $ 10.31 $ 9.85 $ 9.65 $ 9.35
======= ======= ======= ======= =======
Total return (not reflecting sales charge) ............ 0.54% 9.55% 7.22% 8.72% 0.57%
Ratios/supplemental data
Net assets, end of period (in thousands) ........... $94,103 $85,329 $55,957 $34,321 $34,171
Ratio of expenses to average net assets ............ 0.48% 0.43% 0.46% 0.48% 0.42%
Ratio of net investment income to average
net assets ...................................... 4.19% 4.31% 4.65% 4.95% 5.06%
Portfolio turnover rate ............................ 15.98% 6.43% 27.42% 44.17% 48.99%

The expense and net investment income ratios without the effect of the voluntary waiver of a portion of the
management fee and the voluntary expense reimbursement were:

Ratio of expenses to average net assets ............ 0.94% 1.02% 1.00% 1.11% 1.11%
Ratio of net investment income to average
net assets ...................................... 3.73% 3.72% 4.11% 4.32% 4.37%

The expense ratios after giving effect to the waiver, reimbursement and expense offset for uninvested cash
balances were:

Ratio of expenses to average net assets ............ 0.47% 0.42% 0.40% 0.39% 0.39%

- -----------------------
Note: Effective August 1, 2001, Aquila Management Corporation became the
Fund's Investment Adviser replacing Zions First National Bank which
was the sub-adviser. Effective January 1, 2004, Aquila Management
Corporation, founder of the Fund, assigned its Advisory and
Administration Agreement to its wholly-owned subsidiary, Aquila
Investment Management LLC.

+ Per share amounts have been calculated using the monthly average shares
method.

++ Per share amount has been calculated using the daily average shares
method.

See accompanying notes to financial statements.

FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD

CLASS C
-------------------------------------------------------
YEAR ENDED JUNE 30,
-------------------------------------------------------
2004 2003 2002 2001 2000
------- ------- ------- ------- -------

Net asset value, beginning of period ................. $ 10.30 $ 9.85 $ 9.64 $ 9.35 $ 9.87
------- ------- ------- ------- -------
Income (loss) from investment operations:
Net investment income ............................. 0.34++ 0.34+ 0.37+ 0.38+ 0.38+
Net gain (loss) on securities (both
realized and unrealized) ...................... (0.36) 0.48 0.23 0.31 (0.42)
------- ------- ------- ------- -------
Total from investment operations ..................... (0.02) 0.82 0.60 0.69 (0.04)
------- ------- ------- ------- -------
Less distributions (note 10):
Dividends from net investment income .............. (0.37) (0.37) (0.39) (0.40) (0.42)
Distributions from capital gains .................. -- -- -- -- (0.06)
------- ------- ------- ------- -------
Total distributions ............................... (0.37) (0.37) (0.39) (0.40) (0.48)
------- ------- ------- ------- -------
Net asset value, end of period ....................... $ 9.91 $ 10.30 $ 9.85 $ 9.64 $ 9.35
======= ======= ======= ======= =======
Total return (not reflecting sales charge) ........... (0.16)% 8.48% 6.36% 7.52% (0.33)%
Ratios/supplemental data
Net assets, end of period (in thousands) .......... $21,961 $16,420 $ 6,694 $ 1,874 $ 1,036
Ratio of expenses to average net assets ........... 1.27% 1.31% 1.34% 1.47% 1.43%
Ratio of net investment income to
average net assets ............................. 3.38% 3.39% 3.72% 3.93% 4.07%
Portfolio turnover rate ........................... 15.98% 6.43% 27.42% 44.17% 48.99%

The expense and net investment income ratios without the effect of the voluntary waiver of a portion of the
management fee and the voluntary expense reimbursement were:

Ratio of expenses to average net assets ........... 1.74% 1.81% 1.78% 1.89% 1.91%
Ratio of net investment income to
average net assets ............................. 2.93% 2.89% 3.28% 3.51% 3.58%

The expense ratios after giving effect to the waiver, reimbursement and expense offset for uninvested cash
balances were:

Ratio of expenses to average net assets ........... 1.27% 1.30% 1.28% 1.39% 1.39%

CLASS Y
-------------------------------------------------------
YEAR ENDED JUNE 30,
-------------------------------------------------------
2004 2003 2002 2001 2000
------- ------- ------- ------- -------

Net asset value, beginning of period ................. $ 10.34 $ 9.89 $ 9.68 $ 9.36 $ 9.88
------- ------- ------- ------- -------
Income (loss) from investment operations:
Net investment income ............................. 0.44++ 0.42+ 0.50+ 0.49+ 0.45+
Net gain (loss) on securities (both
realized and unrealized) ...................... (0.36) 0.50 0.20 0.34 (0.38)
------- ------- ------- ------- -------
Total from investment operations ..................... 0.08 0.92 0.70 0.83 0.07
------- ------- ------- ------- -------
Less distributions (note 10):
Dividends from net investment income .............. (0.48) (0.47) (0.49) (0.51) (0.53)
Distributions from capital gains .................. -- -- -- -- (0.06)
------- ------- ------- ------- -------
Total distributions ............................... (0.48) (0.47) (0.49) (0.51) (0.59)
------- ------- ------- ------- -------
Net asset value, end of period ....................... $ 9.94 $ 10.34 $ 9.89 $ 9.68 $ 9.36
======= ======= ======= ======= =======
Total return (not reflecting sales charge) ........... 0.76% 9.55% 7.41% 9.05% 0.86%
Ratios/supplemental data
Net assets, end of period (in thousands) .......... $ 8,233 $ 883 $ 30 $ 5 $ 0.1
Ratio of expenses to average net assets ........... 0.28% 0.30% 0.36% 0.42% 0.42%
Ratio of net investment income to
average net assets ............................. 4.41% 4.17% 4.75% 4.83% 4.88%
Portfolio turnover rate ........................... 15.98% 6.43% 27.42% 44.17% 48.99%

The expense and net investment income ratios without the effect of the voluntary waiver of a portion of the
management fee and the voluntary expense reimbursement were:

Ratio of expenses to average net assets ........... 0.74% 0.78% 0.80% 0.64% 0.86%
Ratio of net investment income to
average net assets ............................. 3.95% 3.70% 4.31% 4.62% 4.43%

The expense ratios after giving effect to the waiver, reimbursement and expense offset for uninvested cash
balances were:

Ratio of expenses to average net assets ........... 0.27% 0.29% 0.30% 0.36% 0.39%

- ----------------------
Note: Effective August 1, 2001, Aquila Management Corporation became the
Fund's Investment Adviser replacing Zions First National Bank which was
the sub-adviser. Effective January 1, 2004, Aquila Management Corporation,
founder of the Fund, assigned its Advisory and Administration Agreement to
its wholly-owned subsidiary, Aquila Investment Management LLC.

+ Per share amounts have been calculated using the monthly average
shares method.

++ Per share amounts have been calculated using the daily average shares
method.

See accompanying notes to financial statements.

ADDITIONAL INFORMATION (UNAUDITED)

TRUSTEES(1)
AND OFFICERS

NUMBER OF
POSITIONS PORTFOLIOS OTHER DIRECTORSHIPS
HELD WITH IN FUND HELD BY TRUSTEE
NAME, FUND AND PRINCIPAL COMPLEX (THE POSITION HELD IS
ADDRESS(2) LENGTH OF OCCUPATION(S) OVERSEEN A DIRECTORSHIP UNLESS
AND DATE OF BIRTH SERVICE(3) DURING PAST 5 YEARS BY TRUSTEE INDICATED OTHERWISE.)
- ----------------- ---------- ------------------- ---------- ---------------------

INTERESTED TRUSTEES(4)

Lacy B. Herrmann Founder and Founder, Chief Executive Officer and Chairman 11(5) Director or trustee,
New York, NY Chairman of of the Board, Aquila Management Corporation, Pimco Advisors VIT,
(05/12/29) the Board of the sponsoring organization and parent of the Oppenheimer Quest
Trustees since Manager or Administrator and/or Adviser or Value Funds Group,
1992 Sub-Adviser to each fund of the Aquila(sm) Oppenheimer Small
Group of Funds,(6) Chairman and Chief Cap Value Fund,
Executive Officer of the Manager or Oppenheimer Midcap
Administrator and/or Adviser or Sub-Adviser Fund, and Oppenheimer
to each since 2004, and Founder, Chairman of Rochester Group of
the Board of Trustees, Trustee and (currently Funds.
or until 1998) President of each since its
establishment, beginning in 1984, except
Chairman of the Board of Trustees of Hawaiian
Tax-Free Trust, Pacific Capital Cash Assets
Trust, Pacific Capital Tax-Free Cash Assets
Trust and Pacific Capital U.S. Government
Securities Cash Assets Trust through 2003;
Director of the Distributor since 1981 and
formerly Vice President or Secretary,
1981-1998; Trustee Emeritus, Brown University
and the Hopkins School; active in university,
school and charitable organizations.

Diana P. Herrmann Trustee since Vice Chair of Aquila Management Corporation, 6 None
New York, NY 1997, President Founder of the Aquila(sm) Group of Funds and
(02/25/58) since 1998, parent of Aquila Investment Management LLC,
and Vice Chair the Manager, since 2004, President and Chief
of the Board Operating Officer since 1997, a Director
since 2003 since 1984, Secretary since 1986 and
previously its Executive Vice President,
Senior Vice President or Vice President,
1986-1997; Vice Chair since 2004 and
President, Chief Operating Officer and
Manager of the Manager since 2003; Vice
Chair, President, Executive Vice President or
Senior Vice President of funds in the
Aquila(sm) Group of Funds since 1986; Director
of the Distributor since 1997; trustee,
Reserve Money-Market Funds, 1999-2000 and
Reserve Private Equity Series, 1998-2000;
Governor, Investment Company Institute and
head of its Small Funds Committee since 2004;
active in charitable and volunteer
organizations.

NON-INTERESTED TRUSTEES

Gary C. Cornia Trustee since Director, Romney Institute of Public 4 None
Orem, UT 1993 Management, Marriott School of Management,
(06/24/48) Brigham Young University, 2004 - present;
Professor, Marriott School of Management,
1980 - present; Past President, the National
Tax Association; Chair of the Executive
Committee, the International Center for Land
Policy Studies and Training Institute,
Taipei, Taiwan; formerly Senior Visiting
Fellow, Lincoln Institute of Land Policy,
2002-2003; Associate Dean, Marriott School of
Management, Brigham Young University,
1991-2000; Chair, Utah Governor's Tax Review
Committee, 1993-2002; member, Governor's Tax
Review Committee since 2003; Faculty
Associate, the Land Reform Training
Institute, Taipei, Taiwan and The Lincoln
Institute of Land Policy, Cambridge,
Massachusetts.

William L. Ensign Trustee since Planning and Architectural Consultant since 2 None
Annapolis, MD 1992 1997.
(12/14/28)

Lyle W. Hillyard Trustee since President of the law firm of Hillyard, 1 None
Logan, UT 2003 Anderson & Olsen, Logan, Utah, since 1967;
(09/25/40) member of Utah Senate, 1985 to present, in
the following positions: President, 2000,
Senate Majority Leader, 1999-2000, Assistant
Majority Whip, 1995-1998; served as Chairman
of the following Senate Committees: Tax and
Revenue, Senate Judiciary Standing, Joint
Executive Appropriations, and Senate Rules;
also Appropriations Subcommittees for Higher
Education and for Public Education.

John C. Lucking Trustee since President, Econ-Linc, an economic consulting 3 Director, Sanu Resources
Phoenix, AZ 2004 firm, since 1995; formerly Consulting
(05/20/43) Economist, Bank One Arizona and Chief
Economist, Valley National Bank; member,
Arizona's Joint Legislative Budget Committee
Economic Advisory Panel and the Western Blue
Chip Economic Forecast Panel; Board, Northern
Arizona University Foundation since 1997;
member, various historical, civic and
economic associations.

Anne J. Mills Trustee since President, Loring Consulting Company since 4 None
Castle Rock, CO 1994 2001; Vice President for Business Affairs,
(12/23/38) Ottawa University, 1992-2001; IBM
Corporation, 1965-1991; Budget Review
Officer, the American Baptist Churches/USA,
1994-1997; director, the American Baptist
Foundation; Trustee, Ottawa University; and
Trustee Emerita, Brown University.

OFFICERS

Charles E. Childs, III Executive Vice Executive Vice President of all funds in the N/A N/A
New York, NY President since Aquila(sm) Group of Funds and the Manager
(04/01/57) 2003 since 2003; Senior Vice President, corporate
development, formerly Vice President,
Assistant Vice President and Associate of the
Manager's parent since 1987; Senior Vice
President, Vice President or Assistant Vice
President of the Aquila Money-Market Funds,
1988-2003.

Jerry G. McGrew Senior Vice President of the Distributor since 1998, N/A N/A
New York, NY President since Registered Principal since 1993, Senior Vice
(06/18/44) 1997 President, 1997-1998 and Vice President,
1993-1997; Senior Vice President, Aquila
Rocky Mountain Equity Fund and five Aquila
Bond Funds since 1995; Vice President,
Churchill Cash Reserves Trust, 1995-2001.

Kimball L. Young Senior Vice Co-portfolio manager, Tax-Free Fund For Utah N/A N/A
Salt Lake City, UT President since since 2001; Co-founder, Lewis Young Robertson
(08/07/46) 1998 & Burningham, Inc., a NASD licensed
broker/dealer providing public finance
services to Utah local governments,
1995-2001; Senior Vice President of two
Aquila Bond Funds and Aquila Rocky Mountain
Equity Fund; formerly Senior Vice
President-Public Finance, Kemper Securities
Inc., Salt Lake City, Utah.

Thomas S. Albright Senior Vice Senior Vice President and Portfolio Manager, N/A N/A
Louisville, KY President since Churchill Tax-Free Fund of Kentucky since
(07/26/52) 2003 and Vice July 2000; Senior Vice President, Tax-Free
President, Fund For Utah since 2003, Vice President,
2001-2003 2001-2003 and Co-portfolio manager since
2001; Vice President and Portfolio Manager,
Banc One Investment Advisors, Inc.,
1994-2000.

Stephen J. Caridi Assistant Vice Vice President of the Distributor since 1995; N/A N/A
New York, NY President since Vice President, Hawaiian Tax-Free Trust since
(05/06/61) 1993 1998; Senior Vice President, Narragansett
Insured Tax-Free Income Fund since 1998, Vice
President 1996-1997; Senior Vice President,
Tax-Free Fund of Colorado since 2004;
Assistant Vice President, Tax-Free Fund For
Utah since 1993.

Mary Kayleen Willis Vice President Vice President, Tax-Free Fund For Utah since N/A N/A
Salt Lake City, UT since 2003 and September 2003, Assistant Vice President,
(06/11/63) Assistant Vice 2002-2003; various securities positions:
President, Paine Webber, Inc., Salt Lake City,
2002-2003 1999-2002, Dean Witter Reynolds, Inc., Salt
Lake City, 1996-1998.

Joseph P. DiMaggio Chief Financial Chief Financial Officer of the Aquila(sm) Group N/A N/A
New York, NY Officer since of Funds since 2003 and Treasurer since 2000;
(11/06/56) 2003 and Controller, Van Eck Global Funds, 1993-2000.
Treasurer since
2000

Edward M. W. Hines Secretary since Partner, Hollyer Brady Barrett & Hines LLP, N/A N/A
New York, NY 1992 legal counsel to the Fund, since 1989;
(12/16/39) Secretary of the Aquila(sm) Group of Funds.

Robert W. Anderson Chief Chief Compliance Officer since 2004, N/A N/A
New York, NY Compliance Compliance Officer of the Manager or its
(08/23/40) Officer since predecessor and current parent since 1998 and
2004 and Assistant Secretary of the Aquila(sm) Group of
Assistant Funds since 2000; Consultant, The Wadsworth
Secretary since Group, 1995-1998.
2000

John M. Herndon
New York, NY Assistant Assistant Secretary of the Aquila(sm) Group N/A N/A
(12/17/39) Secretary since of Funds since 1995 and Vice President of the
1995 three Aquila Money-Market Funds since 1990;
Vice President of the Manager or its
predecessor and current parent since 1990.

Lori A. Vindigni Assistant Assistant Treasurer of the Aquila(sm) Group of N/A N/A
New York, NY Treasurer since Funds since 2000; Assistant Vice President of
(11/02/66) 2000 the Manager or its predecessor and current
parent since 1998; Fund Accountant for the
Aquila(sm) Group of Funds, 1995-1998.

- ------------------
(1) The Fund's Statement of Additional Information includes additional
information about the Trustees and is available, without charge, upon request by
calling 800-437-1020 (toll free).

(2) The mailing address of each Trustee and officer is c/o Tax-Free Fund For
Utah, 380 Madison Avenue, New York, NY 10017.

(3) Each Trustee holds office until the next annual meeting of shareholders or
until his or her successor is elected and qualifies. The term of office of each
officer is one year.

(4) Mr. Herrmann and Ms. Herrmann are interested persons of the Fund, as that
term is defined in the 1940 Act, as officers of the Fund and because of their
affiliations with both the Manager and the Distributor. Each is also an
interested person as a member of the immediate family of the other.

(5) Does not include funds that are currently inactive.

(6) In this material Pacific Capital Cash Assets Trust, Pacific Capital U.S.
Government Securities Cash Assets Trust and Pacific Capital Tax-Free Cash Assets
Trust, each of which is a money-market fund, are called the "Aquila Money-Market
Funds"; Hawaiian Tax-Free Trust, Tax-Free Trust of Arizona, Tax-Free Trust of
Oregon, Tax-Free Fund of Colorado, Churchill Tax-Free Fund of Kentucky,
Narragansett Insured Tax-Free Income Fund and Tax-Free Fund For Utah, each of
which is a tax-free municipal bond fund, are called the "Aquila Bond Funds";
Aquila Rocky Mountain Equity Fund is an equity fund; considered together, these
11 funds are called the "Aquila(sm) Group of Funds."

PRIVACY NOTICE (UNAUDITED)

TAX-FREE FUND FOR UTAH

OUR PRIVACY POLICY. In providing services to you as an individual who owns or is
considering investing in shares of the Fund we collect certain nonpublic
personal information about you. Our policy is to keep this information strictly
safeguarded and confidential, and to use or disclose it only as necessary to
provide services to you or as otherwise permitted by law. Our privacy policy
applies equally to former shareholders and persons who inquire about a fund.

INFORMATION WE COLLECT. "Nonpublic personal information" is personally
identifiable financial information about you as an individual or your family.
The kinds of nonpublic personal information we have about you may include the
information you provide us on your share purchase application or in telephone
calls or correspondence with us, and information about your fund transactions
and holdings, how you voted your shares and the account where your shares are
held.

INFORMATION WE DISCLOSE. We disclose nonpublic personal information about you to
companies that provide necessary services to us, such as the fund's transfer
agent, distributor, investment adviser or sub-adviser, as permitted or required
by law, or as authorized by you. Any other use is strictly prohibited. We do not
sell information about you or any of our fund shareholders to anyone.

HOW WE SAFEGUARD YOUR INFORMATION. We restrict access to nonpublic personal
information about you to only those persons who need it to provide services to
you or who are permitted by law to receive it. We maintain physical, electronic
and procedural safeguards to protect the confidentiality of all nonpublic
personal information we have about you.

If you have any questions regarding our Privacy Policy, please contact us at
1-800-437-1020.

AQUILA DISTRIBUTORS, INC.
AQUILA INVESTMENT MANAGEMENT LLC

This Privacy Policy also has been adopted by Aquila Distributors, Inc. and
Aquila Investment Management LLC and applies to all nonpublic information about
you that each of these companies may obtain in connection with services provided
to the Fund or to you as a shareholder of the Fund.

INFORMATION AVAILABLE (UNAUDITED)

Much of the information that the funds in the Aquila(sm) Group of Funds
produce is automatically sent to you and all other shareholders. Specifically,
you are routinely sent the entire list of portfolio securities of your fund
twice a year in the semi-annual and annual reports you receive. You should know,
however, that we prepare, and have available, portfolio listings at the end of
each quarter.

Whenever you may be interested in seeing a listing of your Fund's portfolio
other than in your shareholder reports, please check our website
(www.aquilafunds.com) or call us at 1-800-437-1020.

FEDERAL TAX STATUS OF DISTRIBUTIONS (UNAUDITED)

This information is presented in order to comply with a requirement of the
Internal Revenue Code AND NO CURRENT ACTION ON THE PART OF SHAREHOLDERS IS
REQUIRED.

For the fiscal year ended June 30, 2004, $4,758,187 of dividends paid by
Tax-Free Fund For Utah, constituting 94.02% of total dividends paid during the
fiscal year ended June 30, 2004, were exempt-interest dividends, and the balance
was ordinary dividend income.

Prior to January 31, 2004, shareholders were mailed IRS Form 1099-DIV which
contained information on the status of distributions paid for the 2003 CALENDAR
YEAR.

Prior to January 31, 2005, shareholders will be mailed IRS Form 1099-DIV
which will contain information on the status of distributions paid for the 2004
CALENDAR YEAR.

PROXY VOTING RECORD. The Fund does not invest in equity securities. Accordingly,
there were no matters relating to a portfolio security considered at any
shareholder meeting held during the 12 months ended June 30, 2004 with respect
to which the Fund was entitled to vote. Applicable regulations require us to
inform you that the foregoing proxy voting information is available on the SEC
website at http://www.sec.gov.

FOUNDER

AQUILA MANAGEMENT CORPORATION

MANAGER
AQUILA INVESTMENT MANAGEMENT LLC
380 Madison Avenue, Suite 2300
New York, New York 10017

BOARD OF TRUSTEES
Lacy B. Herrmann, Chairman
Gary C. Cornia
William L. Ensign
Diana P. Herrmann
Lyle W. Hillyard
John C. Lucking
Anne J. Mills

OFFICERS
Diana P. Herrmann, Vice Chair and President
Jerry G. McGrew, Senior Vice President
Kimball L. Young, Senior Vice President
and Co-Portfolio Manager
Thomas S. Albright, Senior Vice President
and Co-Portfolio Manager
M. Kayleen Willis, Vice President
Joseph P. DiMaggio, Chief Financial Officer
and Treasurer
Edward M.W. Hines, Secretary

DISTRIBUTOR
AQUILA DISTRIBUTORS, INC.
380 Madison Avenue, Suite 2300
New York, New York 10017

CUSTODIAN
BANK ONE TRUST COMPANY, N.A.
1111 Polaris Parkway
Columbus, Ohio 43240

TRANSFER AND SHAREHOLDER SERVICING AGENT
PFPC INC.
760 Moore Road
King of Prussia, Pennsylvania 19406

INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
KPMG LLP
757 Third Avenue
New York, New York 10017

Further information is contained in the Prospectus,
which must precede or accompany this report.

ITEM 2. CODE OF ETHICS.

(a) As of June 30, 2004 (the end of the reporting period) the
Trust has adopted a code of ethics that applies to the Fund's
principal executive officer(s)and principal financial officer(s)
and persons performing similar functions ("Covered Officers") as
defined in the Aquila Group of Funds Code of Ethics for Principal
Executive and Senior Financial Officers under Section 406 of the
Sarbanes-Oxley Act of 2002.;

(f)(1) Pursuant to Item 10(a)(1), a copy of the Fund's Code of
Ethics that applies to the Trust's principal executive officer(s)
and principal financial officer(s) and persons performing similar
functions is included as an exhibit to its annual report on this
Form N-CSR;

(f)(2) The text of the Fund's Code of Ethics that applies to the
Fund's principal executive officer(s) and principal financial
officer(s) and persons performing similar functions has been
posted on its Internet website which can be found at the Fund's
Internet address at aquilafunds.com.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

(a)(1)(ii) The Board of Trustees of the Fund has determined that
it does not have at least one audit committee financial expert
serving on its audit committee. The Fund does not have such a
person serving on the audit committee because none of the persons
currently serving as Trustees happens to have the technical
accounting and auditing expertise included in the definition of
"audit committee financial expert" recently adopted by the Securities
and Exchange Commission in connection with this Form N-CSR, and the
Board has not heretofore deemed it necessary to seek such a person
for election to the Board.

The primary mission of the Board, which is that of oversight over
the operations and affairs of the Fund, confronts the Trustees with
a wide and expanding range of issues and responsibilities. The
Trustees believe that, accordingly, it is essential that the Board's
membership consist of persons with as extensive experience as possible
in fulfilling the duties and responsibilities of mutual fund directors
and audit committee members and, ideally, with extensive experience
and background relating to the economic and financial sectors and
securities in which the Fund invests, including exposure to the
financial and accounting matters commonly encountered with respect
to those sectors and securities. The Board believes that its current
membership satisfies those criteria. It recognizes that it would
also be helpful to have a member with the relatively focused accounting
and auditing expertise reflected in the applicable definition of
"audit committee financial expert," just as additional members with
similarly focused technical expertise in other areas relevant to
the Fund's operations and affairs would also contribute added value.
However, the Board believes that the Fund is better served, and its
assets better employed, by a policy of hiring experts in various
areas, including the specialized area of technical accounting and
auditing matters, if and as the Board identifies the need, rather
than by seeking to expand its numbers by adding technical experts
in the areas constituting its domain of responsibility. The Fund's
Audit Committee Charter explicitly authorizes the Committee to
retain such experts as it deems necessary in fulfilling its duties
under the Charter.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES

a) Audit Fees - The aggregate fees billed for each of the last two
fiscal years for professional services rendered by the principal
accountant for the audit of the Registrant's annual financial statements
or services that are normally provided by the accountant in connection
with statutory and regulatory filings or engagements were $15,450 in
2004 and $15,000 in 2003.

b) Audit Related Fees - There were no amounts billed for audit-related
fees over the past two years other than stated above.

c) Tax Fees - The Registrant was billed by the principal accountant
$7,300 and $8,392 in 2004 and 2003, respectively, for tax return
preparation, tax compliance and tax planning.

d) All Other Fees - There were no additional fees paid for audit and non-
audit services other than those disclosed in a) thorough c) above.

e)(1) Currently, the audit committee of the Registrant pre-approves audit
services and fees on an engagement-by-engagement basis.

e)(2) None of the services described in b) through d) above were approved
by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of
Regulation S-X, all were pre-approved on an engagement-by-engagement basis.

f) No applicable.

g) There were no non-audit services fees billed by the Registrant's accountant
to the Registrant's investment adviser or distributor over the past two years.

h) Not applicable.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.

ITEM 6. [RESERVED]

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

ITEM 8. [RESERVED]

ITEM 9. CONTROLS AND PROCEDURES.

(a) Based on their evaluation of the registrant's disclosure controls and
procedures (as defined in Rule 30a-2(c) under the Investment Company Act of
1940) as of a date within 90 days of the fling of this report, the registrant's
chief financial and executive officers have concluded that the disclosure
controls and procedures of the registrant are appropriately designed to ensure
that information required to be disclosed in the registrant's reports that are
filed under the Securities Exchange Act of 1934 are accumulated and communicated
to registrant's management, including its principal executive officer(s) and
principal financial officer(s), to allow timely decisions regarding required
disclosure and is recorded, processed, summarized and reported, within the time
periods specified in the rules and forms adopted by the Securities and Exchange
Commission.

(b) There have been no significant changes in registrant's internal controls or
in other factors that could significantly affect registrant's internal controls
subsequent to the date of the most recent evaluation, including no significant
deficiencies or material weaknesses that required corrective action.

ITEM 10. EXHIBITS.

(a)(1) (a)(1) Aquila Group of Funds Code of Ethics for Principal Executive and
Senior Financial Officers under Section 406 of the Sarbanes-Oxley Act of 2002.

(a)(2) Certifications of principal executive officer and principal financial
officer as required by Rule 30a-2(a) under the Investment Company Act of
1940.

(b) Certifications of principal executive officer and principal financial
officer as required by Rule 30a-2(b) under the Investment Company Act of 1940.

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.

TAX-FREE FUND FOR UTAH

By: /s/ Lacy B. Herrmann
- ---------------------------------
Chairman of the Board
September 6, 2004

By: /s/ Diana P. Herrmann
- ---------------------------------
Vice Chair, Trustee and President
September 6, 2004

By: /s/ Joseph P. DiMaggio
- -----------------------------------
Chief Financial Officer and Treasurer
September 6, 2004

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/ Lacy B. Herrmann
- ---------------------------------
Lacy B. Herrmann
Chairman of the Board
September 6, 2004

By: /s/ Diana P. Herrmann
- ---------------------------------
Diana P. Herrmann
Vice Chair, Trustee and President
September 6, 2004

By: /s/ Joseph P. DiMaggio
- -----------------------------------
Joseph P. DiMaggio
Chief Financial Officer and Treasurer
September 6, 2004