<ARTICLE>                                                        6
 
 <CIK>                                       0000764860
 
 <NAME>                                      FLAGSHIP LIMITED TERM
                                             TAX EXEMPT FUND

 <SERIES>
 
 <NUMBER>                                                       163
 
 <NAME>                                      CLASS C
 
 <MULTIPLIER>                                                     1

        
 
                                          
 <PERIOD-TYPE>                               OTHER
 
 <FISCAL-YEAR-END>                           MAY-31-1996
 
 <PERIOD-START>                              DEC-01-1995

 <PERIOD-END>                                MAY-31-1996
 
 <INVESTMENTS-AT-COST>                                  498,574,253
 
 <INVESTMENTS-AT-VALUE>                                 507,257,978
 
 <RECEIVABLES>                                           11,894,095
 
 <ASSETS-OTHER>                                              34,191

 <OTHER-ITEMS-ASSETS>                                             0
 
 <TOTAL-ASSETS>                                         519,186,264
 
 <PAYABLE-FOR-SECURITIES>                                 9,021,840
 
 <SENIOR-LONG-TERM-DEBT>                                          0

 <OTHER-ITEMS-LIABILITIES>                                5,592,976
 
 <TOTAL-LIABILITIES>                                     14,614,816
 
 <SENIOR-EQUITY>                                                  0
 
 <PAID-IN-CAPITAL-COMMON>                               501,995,106
 
 <SHARES-COMMON-STOCK>                                    1,459,416

 <SHARES-COMMON-PRIOR>                                            0
 
 <ACCUMULATED-NII-CURRENT>                                  744,546
 
 <OVERDISTRIBUTION-NII>                                           0
 
 <ACCUMULATED-NET-GAINS>                                (6,851,929)

 <OVERDISTRIBUTION-GAINS>                                         0
 
 <ACCUM-APPREC-OR-DEPREC>                                 8,683,725
 
 <NET-ASSETS>                                           504,571,448
 
 <DIVIDEND-INCOME>                                                0
 
 <INTEREST-INCOME>                                       29,493,571

 <OTHER-INCOME>                                                   0
 
 <EXPENSES-NET>                                         (4,138,295)
 
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 <APPREC-INCREASE-CURRENT>                              (5,083,239)
 
 <NET-CHANGE-FROM-OPS>                                   21,395,901
 
 <EQUALIZATION>                                                   0
 
 <DISTRIBUTIONS-OF-INCOME>                                (175,819)
 
 <DISTRIBUTIONS-OF-GAINS>                                         0

 <DISTRIBUTIONS-OTHER>                                            0
 
 <NUMBER-OF-SHARES-SOLD>                                  1,505,009
 
 <NUMBER-OF-SHARES-REDEEMED>                               (53,177)
 
 <SHARES-REINVESTED>                                          7,584

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 <ACCUMULATED-GAINS-PRIOR>                              (7,975,793)
 
 <OVERDISTRIB-NII-PRIOR>                                          0
 
 <OVERDIST-NET-GAINS-PRIOR>                                       0 
 
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 <INTEREST-EXPENSE>                                               0
 
 <GROSS-EXPENSE>                                          4,515,924

 <AVERAGE-NET-ASSETS>                                             0
 
 <PER-SHARE-NAV-BEGIN>                                        10.76
 
 <PER-SHARE-NII>                                               0.22
 
 <PER-SHARE-GAIN-APPREC>                                     (0.19)
 
 <PER-SHARE-DIVIDEND>                                        (0.23)

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 <RETURNS-OF-CAPITAL>                                          0.00
 
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 <EXPENSE-RATIO>                                               1.19

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