There are "single-state" mutual funds and there are "multi-state or national" mutual funds. Usually the single-state fund has the name of the state in the name of the fund, for example Wisconsin Tax-Free Municipal Bond Fund, Multi-state or national funds do not have a name of a state in the name of the fund.
So, if you have a fund with a state name in the fund, then you select that state's id, otherwise you select "more than one state" from the state name drop down box or XX if you are doing it manually

Mine is a "Florida fund

Why is Utah still including my Bond Dividends from a Florida Tax Free Bond from Franklin Templeton?

 

TurboTax does not automatically subtract out municipal bond interest that is not coded as Utah.

 

In Utah go to Let's Check for Items Not Taxed by Utah. Enter your interest as Equitable Subtractions.

 

Utah does not tax interest earned on non-Utah municipal bonds if
the issuer does not impose an income tax on bonds issued
by Utah, or the issuing state does not impose an income tax. 

 

Related Resource:

• 2020 TC-40 Utah Individual Income Tax Return Instructions