State & Fed Tax exempt fund - being taxed by TurboTax ?? Fidelity 1099-B

Imported by 1099-Consolidated -DIV -INT -B forms from Fidelity.
We own SMTFX - SIT Minnesota Tax Free Fund - exempt from State and Fed taxes.
The Fidelity import included a 1099-B for a short term sale of SMTFX - the proceeds is being taxed by turbotax no matter what selections I make. 

Frustrated b/c this fund is supposed to be tax free - and therefore a lower return rate than other funds like a money market. 
https://sitfunds.com/minnesota-tax-free-income-fund/ 

 

Help! 🙂