UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY
 
Investment Company Act file number 811-06693
 
Nuveen Select Tax-Free Income Portfolio 3
(Exact name of registrant as specified in charter)
 
Nuveen Investments
        333 West Wacker Drive, Chicago, Illinois 60606         
(Address of principal executive offices) (Zip code)
 

Kevin J. McCarthy
Vice President and Secretary
        333 West Wacker Drive, Chicago, Illinois 60606         
(Name and address of agent for service)
 
Registrant's telephone number, including area code:         312-917-7700        
 
Date of fiscal year end:            3/31          
 
Date of reporting period:         6/30/16         
 
Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.
 
A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

 
 
Item 1. Schedule of Investments
 

 
  
Portfolio of Investments 
 
 
 
           
 
  
Nuveen Select Tax-Free Income Portfolio 3 (NXR) 
 
 
 
 
  
June 30, 2016 (Unaudited) 
 
 
 
 
 
Principal 
  
 
Optional Call 
 
 
Amount (000) 
  
Description (1) 
Provisions (2) 
Ratings (3) 
Value 
 
  
LONG-TERM INVESTMENTS – 98.5% 
 
 
 
           
 
  
MUNICIPAL BONDS – 98.5% 
 
 
 
           
 
  
Alaska – 1.2% 
 
 
 
$ 2,675 
  
Northern Tobacco Securitization Corporation, Alaska, Tobacco Settlement Asset-Backed Bonds, 
12/16 at 100.00 
B3 
$ 2,645,976 
 
  
Series 2006A, 5.000%, 6/01/32 
 
 
 
 
  
Arizona – 0.9% 
 
 
 
1,770 
  
Arizona Water Infrastructure Finance Authority, Water Quality Revenue Bonds, Series 2008A, 
10/18 at 100.00 
AAA 
1,941,902 
 
  
5.000%, 10/01/20 
 
 
 
 
  
California – 22.9% 
 
 
 
12,500 
  
Anaheim Public Financing Authority, California, Lease Revenue Bonds, Public Improvement 
No Opt. Call 
AA 
6,937,750 
 
  
Project, Series 1997C, 0.000%, 9/01/35 – AGM Insured 
 
 
 
1,000 
  
California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, Los 
12/18 at 100.00 
B3 
1,017,910 
 
  
Angeles County Securitization Corporation, Series 2006A, 5.600%, 6/01/36 
 
 
 
1,125 
  
California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, Sonoma 
12/16 at 100.00 
B– 
1,125,293 
 
  
County Tobacco Securitization Corporation, Series 2005, 5.000%, 6/01/26 
 
 
 
890 
  
California Statewide Community Development Authority, Revenue Bonds, Methodist Hospital 
8/19 at 100.00 
N/R (4) 
1,055,095 
 
  
Project, Series 2009, 6.750%, 2/01/38 (Pre-refunded 8/01/19) 
 
 
 
240 
  
California Statewide Financing Authority, Tobacco Settlement Asset-Backed Bonds, Pooled 
11/16 at 100.00 
Baa3 
243,965 
 
  
Tobacco Securitization Program, Series 2002A, 5.625%, 5/01/29 
 
 
 
2,275 
  
Folsom Cordova Unified School District, Sacramento County, California, General Obligation 
No Opt. Call 
AA– 
1,613,749 
 
  
Bonds, School Facilities Improvement District 4, Series 2007A, 0.000%, 10/01/28 – NPFG Insured 
 
 
 
3,370 
  
Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement 
No Opt. Call 
A+ 
2,550,382 
 
  
Asset-Backed Revenue Bonds, Series 2005A, 0.000%, 6/01/28 – AMBAC Insured 
 
 
 
 
  
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed 
 
 
 
 
  
Bonds, Series 2007A-1: 
 
 
 
700 
  
4.500%, 6/01/27 
6/17 at 100.00 
B 
712,992 
2,090 
  
5.000%, 6/01/33 
6/17 at 100.00 
B– 
2,107,075 
4,055 
  
Kern Community College District, California, General Obligation Bonds, Series 2003A, 0.000%, 
No Opt. Call 
Aa2 
3,044,981 
 
  
3/01/28 – FGIC Insured 
 
 
 
1,160 
  
Mount San Antonio Community College District, Los Angeles County, California, General 
8/35 at 100.00 
AA 
1,020,290 
 
  
Obligation Bonds, Election of 2008, Series 2013A, 0.000%, 8/01/43 (5) 
 
 
 
11,985 
  
Norwalk La Mirada Unified School District, Los Angeles County, California, General Obligation 
No Opt. Call 
AA 
7,572,123 
 
  
Bonds, Election of 2002, Series 2007C, 0.000%, 8/01/32 – AGM Insured 
 
 
 
3,000 
  
Palomar Pomerado Health, California, General Obligation Bonds, Capital Appreciation, Election 
No Opt. Call 
AA– 
2,371,860 
 
  
of 2004, Series 2007A, 0.000%, 8/01/25 – NPFG Insured 
 
 
 
8,040 
  
Placentia-Yorba Linda Unified School District, Orange County, California, Certificates of 
No Opt. Call 
AA– (4) 
5,596,242 
 
  
Participation, Series 2006, 0.000%, 10/01/34 – NPFG Insured (ETM) 
 
 
 
1,500 
  
Placer Union High School District, Placer County, California, General Obligation Bonds, Series 
No Opt. Call 
AA 
947,700 
 
  
2004C, 0.000%, 8/01/32 – AGM Insured 
 
 
 
8,000 
  
Poway Unified School District, San Diego County, California, General Obligation Bonds, School 
No Opt. Call 
AA– 
5,176,080 
 
  
Facilities Improvement District 2007-1, Election 2008 Series 2009A, 0.000%, 8/01/32 
 
 
 
3,940 
  
Rancho Mirage Redevelopment Agency, California, Tax Allocation Bonds, Combined Whitewater and 
No Opt. Call 
AA– 
2,087,924 
 
  
1984 Project Areas, Series 2003A, 0.000%, 4/01/35 – NPFG Insured 
 
 
 
1,030 
  
Riverside Public Financing Authority, California, Tax Allocation Bonds, University Corridor, 
8/17 at 100.00 
AA– 
1,067,595 
 
  
Series 2007C, 5.000%, 8/01/37 – NPFG Insured 
 
 
 
2,280 
  
San Diego County Water Authority, California, Water Revenue Certificates of Participation, 
5/18 at 100.00 
AAA 
2,464,589 
 
  
Series 2008A, 5.000%, 5/01/38 (Pre-refunded 5/01/18) (WI/DD, Settling 7/01/16) – AGM Insured 
 
 
 
69,180 
  
Total California 
 
 
48,713,595 
 
  
Colorado – 5.8% 
 
 
 
1,540 
  
Arkansas River Power Authority, Colorado, Power Revenue Bonds, Series 2006, 5.250%, 10/01/40 – 
10/16 at 100.00 
BBB– 
1,551,858 
 
  
SYNCORA GTY Insured 
 
 
 
2,000 
  
Colorado Health Facilities Authority, Colorado, Revenue Bonds, Sisters of Charity of 
1/20 at 100.00 
AA– 
2,240,900 
 
  
Leavenworth Health Services Corporation, Series 2010A, 5.000%, 1/01/40 
 
 
 
1,000 
  
Colorado Health Facilities Authority, Colorado, Revenue Bonds, Valley View Hospital 
5/17 at 100.00 
A– 
1,035,530 
 
  
Association, Series 2007, 5.250%, 5/15/42 
 
 
 
1,935 
  
Denver City and County, Colorado, Airport System Revenue Bonds, Subordinate Lien Series 2013B, 
11/23 at 100.00 
A 
2,290,382 
 
  
5.000%, 11/15/43 
 
 
 
1,295 
  
E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, Series 2000B, 0.000%, 9/01/32 – 
No Opt. Call 
AA– 
825,394 
 
  
NPFG Insured 
 
 
 
5,520 
  
E-470 Public Highway Authority, Colorado, Toll Revenue Bonds, Series 2004B, 0.000%, 9/01/28 – 
9/20 at 63.98 
AA– 
3,113,390 
 
  
NPFG Insured 
 
 
 
1,000 
  
Park Creek Metropolitan District, Colorado, Senior Limited Property Tax Supported Revenue 
12/25 at 100.00 
BBB 
1,201,200 
 
  
Bonds, Refunding Series 2015A, 5.000%, 12/01/33 
 
 
 
14,290 
  
Total Colorado 
 
 
12,258,654 
 
  
District of Columbia – 0.8% 
 
 
 
1,700 
  
Washington Convention Center Authority, District of Columbia, Dedicated Tax Revenue Bonds, 
10/16 at 100.00 
AA 
1,719,210 
 
  
Senior Lien Refunding Series 2007A, 5.000%, 10/01/20 – AGM Insured 
 
 
 
 
  
Florida – 5.6% 
 
 
 
1,000 
  
Broward County, Florida, Professional Sports Facilities Tax and Revenue Bonds, Broward County 
No Opt. Call 
AA 
1,006,980 
 
  
Civic Arena Project, Refunding Series 2006A, 5.000%, 9/01/28 – AMBAC Insured 
 
 
 
1,825 
  
Duval County School Board, Florida, Certificates of Participation, Master Lease Program, 
7/17 at 100.00 
Aa3 (4) 
1,906,377 
 
  
Series 2008, 5.000%, 7/01/26 (Pre-refunded 7/01/17) – AGM Insured 
 
 
 
1,825 
  
Florida State Turnpike Authority, Turnpike Revenue Bonds, Department of Transportation, Series 
No Opt. Call 
Aa2 
1,825,237 
 
  
2010B, 5.000%, 7/01/16 
 
 
 
1,000 
  
Hillsborough County Industrial Development Authority, Florida, Hospital Revenue Bonds, Tampa 
10/16 at 100.00 
A 
1,009,770 
 
  
General Hospital, Series 2006, 5.250%, 10/01/41 
 
 
 
2,500 
  
JEA St. Johns River Power Park System, Florida, Revenue Bonds, 2012-Issue 2 Series 25, 
No Opt. Call 
Aa2 
2,528,825 
 
  
5.000%, 10/01/16 
 
 
 
3,400 
  
Miami-Dade County, Florida, Special Obligation Bonds, Capital Asset Acquisition, Series 2007A, 
4/17 at 100.00 
AA– 
3,510,330 
 
  
5.000%, 4/01/23 – AMBAC Insured 
 
 
 
11,550 
  
Total Florida 
 
 
11,787,519 
 
  
Georgia – 0.5% 
 
 
 
1,020 
  
Private Colleges and Universities Authority, Georgia, Revenue Bonds, Emory University, 
No Opt. Call 
AA+ 
1,024,111 
 
  
Refunding Series 2005A, 5.000%, 9/01/18 
 
 
 
 
  
Illinois – 13.2% 
 
 
 
3,900 
  
Chicago Board of Education, Illinois, General Obligation Bonds, Series 1999A, 0.000%, 
No Opt. Call 
AA– 
2,390,076 
 
  
12/01/28 – FGIC Insured 
 
 
 
1,100 
  
Chicago, Illinois, General Airport Revenue Bonds, O’Hare International Airport, Third Lien 
1/17 at 100.00 
AA 
1,124,090 
 
  
Series 2008B, 5.000%, 1/01/20 – AGM Insured 
 
 
 
2,000 
  
Chicago, Illinois, General Obligation Bonds, Project & Refunding Series 2006A, 4.625%, 
1/17 at 100.00 
AA 
2,006,340 
 
  
1/01/31 – AGM Insured 
 
 
 
260 
  
Illinois Finance Authority, Revenue Bonds, Rehabilitation Institute of Chicago, Series 2013A, 
7/23 at 100.00 
A– 
321,610 
 
  
6.000%, 7/01/43 
 
 
 
1,600 
  
Illinois Finance Authority, Revenue Bonds, Resurrection Health Care System, Series 1999B, 
5/18 at 100.00 
AA 
1,716,416 
 
  
5.000%, 5/15/24 – AGM Insured 
 
 
 
1,500 
  
Illinois Finance Authority, Revenue Bonds, Silver Cross Hospital and Medical Centers, 
8/18 at 100.00 
BBB+ 
1,601,040 
 
  
Refunding Series 2008A, 5.500%, 8/15/30 
 
 
 
1,050 
  
Illinois Finance Authority, Revenue Bonds, University of Chicago, Tender Option Bond Trust 
No Opt. Call 
AA– (4) 
1,142,789 
 
  
2015-XF0248, 8.984%, 7/01/46 (Pre-refunded 7/01/17) (IF) (6) 
 
 
 
750 
  
Illinois Finance Authority, Student Housing Revenue Bonds, Educational Advancement Fund Inc., 
11/16 at 100.00 
BBB+ 
756,533 
 
  
University Center Project, Series 2006B, 5.000%, 5/01/25 
 
 
 
1,500 
  
Illinois Health Facilities Authority, Revenue Bonds, Evangelical Hospitals Corporation, Series 
No Opt. Call 
N/R (4) 
1,776,960 
 
  
1992C, 6.250%, 4/15/22 (ETM) 
 
 
 
2,190 
  
Illinois State, General Obligation Bonds, Refunding Series 2012, 5.000%, 8/01/23 
No Opt. Call 
BBB+ 
2,480,131 
1,000 
  
Kankakee & Will Counties Community Unit School District 5, Illinois, General Obligation Bonds, 
No Opt. Call 
Aa3 
842,380 
 
  
Series 2006, 0.000%, 5/01/23 – AGM Insured 
 
 
 
 
  
Metropolitan Pier and Exposition Authority, Illinois, Revenue Bonds, McCormick Place Expansion 
 
 
 
 
  
Project, Series 2002A: 
 
 
 
2,500 
  
0.000%, 12/15/30 – NPFG Insured 
No Opt. Call 
AA– 
1,545,325 
4,775 
  
0.000%, 12/15/31 – NPFG Insured 
No Opt. Call 
AA– 
2,837,687 
5,000 
  
0.000%, 12/15/36 – NPFG Insured 
No Opt. Call 
AA– 
2,373,600 
2,000 
  
0.000%, 6/15/37 – NPFG Insured 
No Opt. Call 
AA– 
926,580 
2,000 
  
Springfield, Illinois, Electric Revenue Bonds, Senior Lien Series 2007, 5.000%, 3/01/22 
3/17 at 100.00 
AA– (4) 
2,058,580 
 
  
(Pre-refunded 3/01/17) – NPFG Insured 
 
 
 
1,400 
  
Springfield, Illinois, Electric Revenue Bonds, Senior Lien Series 2015, 5.000%, 3/01/28 
3/25 at 100.00 
A 
1,726,480 
310 
  
University of Illinois, Health Services Facilities System Revenue Bonds, Series 2013, 
10/23 at 100.00 
A 
380,742 
 
  
6.000%, 10/01/42 
 
 
 
34,835 
  
Total Illinois 
 
 
28,007,359 
 
  
Indiana – 2.9% 
 
 
 
5,000 
  
Indiana Finance Authority, State Revolving Fund Program Bonds, Series 2007A, 4.000%, 2/01/27 
2/17 at 100.00 
AAA 
5,101,200 
 
  
(Pre-refunded 2/01/17) 
 
 
 
270 
  
Indiana Finance Authority, Tax-Exempt Private Activity Revenue Bonds, I-69 Section 5 Project, 
9/24 at 100.00 
BBB– 
308,667 
 
  
Series 2014, 5.250%, 9/01/34 (Alternative Minimum Tax) 
 
 
 
1,000 
  
Zionsville Community Schools Building Corporation, Indiana, First Mortgage Bonds, Series 
No Opt. Call 
AA 
770,540 
 
  
2005Z, 0.000%, 7/15/28 – AGM Insured 
 
 
 
6,270 
  
Total Indiana 
 
 
6,180,407 
 
  
Iowa – 1.1% 
 
 
 
1,230 
  
Iowa Finance Authority, Iowa, Midwestern Disaster Area Revenue Bonds, Iowa Fertilizer Company 
No Opt. Call 
B+ 
1,281,488 
 
  
Project, Series 2013, 5.000%, 12/01/19 
 
 
 
950 
  
Iowa Tobacco Settlement Authority, Tobacco Asset-Backed Revenue Bonds, Series 2005B, 
6/17 at 100.00 
B+ 
953,905 
 
  
5.600%, 6/01/34 
 
 
 
2,180 
  
Total Iowa 
 
 
2,235,393 
 
  
Maryland – 0.3% 
 
 
 
550 
  
Baltimore, Maryland, Senior Lien Convention Center Hotel Revenue Bonds, Series 2006A, 5.250%, 
9/16 at 100.00 
Ba1 
553,328 
 
  
9/01/23 – SYNCORA GTY Insured 
 
 
 
 
  
Michigan – 3.0% 
 
 
 
355 
  
Detroit Water and Sewerage Department, Michigan, Sewage Disposal System Revenue Bonds, 
7/22 at 100.00 
A– 
405,066 
 
  
Refunding Senior Lien Series 2012A, 5.250%, 7/01/39 
 
 
 
3,635 
  
Detroit, Michigan, Sewer Disposal System Revenue Bonds, Second Lien, Series 2006B, 4.625%, 
7/16 at 100.00 
AA– 
3,646,232 
 
  
7/01/34 – FGIC Insured 
 
 
 
700 
  
Detroit, Michigan, Water Supply System Second Lien Revenue Refunding Bonds, Series 2006C, 
No Opt. Call 
AA 
702,429 
 
  
5.000%, 7/01/33 – AGM Insured 
 
 
 
1,295 
  
Portage Public Schools, Kalamazoo County, Michigan, General Obligation Bonds, School Building 
5/18 at 100.00 
AA (4) 
1,399,170 
 
  
& Site Series 2008, 5.000%, 5/01/21 (Pre-refunded 5/01/18) – AGM Insured 
 
 
 
250 
  
Royal Oak Hospital Finance Authority, Michigan, Hospital Revenue Bonds, William Beaumont 
9/18 at 100.00 
Aaa 
291,068 
 
  
Hospital, Refunding Series 2009V, 8.250%, 9/01/39 (Pre-refunded 9/01/18) 
 
 
 
6,235 
  
Total Michigan 
 
 
6,443,965 
 
  
Minnesota – 1.4% 
 
 
 
3,040 
  
Minnesota State, General Obligation Bonds, Various Purpose Series 2013A, 5.000%, 8/01/16 
No Opt. Call 
AA+ 
3,052,069 
 
  
Missouri – 0.1% 
 
 
 
270 
  
Bi-State Development Agency of the Missouri-Illinois Metropolitan District, Mass Transit Sales 
10/18 at 100.00 
AA+ 
294,565 
 
  
Tax Appropriation Bonds, Refunding Combined Lien Series 2013A, 5.000%, 10/01/28 
 
 
 
 
  
Montana – 0.8% 
 
 
 
1,440 
  
Montana Facilities Finance Authority, Revenue Bonds, Sisters of Charity of Leavenworth Health 
1/20 at 100.00 
AA– 
1,583,582 
 
  
Services Corporation, Composite Deal Series 2010A, 4.750%, 1/01/40 
 
 
 
 
  
Nevada – 1.7% 
 
 
 
1,000 
  
Clark County, Nevada, Passenger Facility Charge Revenue Bonds, Las Vegas-McCarran 
1/20 at 100.00 
A+ 
1,126,040 
 
  
International Airport, Series 2010A, 5.250%, 7/01/42 
 
 
 
2,500 
  
North Las Vegas, Nevada, General Obligation Bonds, Series 2006, 5.000%, 5/01/36 – NPFG Insured 
11/16 at 100.00 
AA– 
2,499,900 
3,500 
  
Total Nevada 
 
 
3,625,940 
 
  
New Jersey – 2.6% 
 
 
 
2,000 
  
New Jersey Economic Development Authority, Revenue Bonds, Motor Vehicle Surcharge, Series 
1/17 at 100.00 
AA– 
2,017,160 
 
  
2004A, 5.000%, 7/01/34 – NPFG Insured 
 
 
 
305 
  
New Jersey Health Care Facilities Financing Authority, Revenue Bonds, University Hospital 
7/25 at 100.00 
AA 
373,009 
 
  
Issue, Refunding Series 2015A, 5.000%, 7/01/28 – AGM Insured 
 
 
 
4,900 
  
New Jersey Transportation Trust Fund Authority, Transportation System Bonds, Refunding Series 
No Opt. Call 
A– 
3,174,955 
 
  
2006C, 0.000%, 12/15/28 – AMBAC Insured 
 
 
 
7,205 
  
Total New Jersey 
 
 
5,565,124 
 
  
New Mexico – 0.5% 
 
 
 
1,000 
  
New Mexico Mortgage Finance Authority, Multifamily Housing Revenue Bonds, St Anthony, Series 
9/17 at 100.00 
N/R 
1,017,930 
 
  
2007A, 5.250%, 9/01/42 (Alternative Minimum Tax) 
 
 
 
 
  
New York – 4.0% 
 
 
 
1,025 
  
Dormitory Authority of the State of New York, FHA Insured Mortgage Hospital Revenue Bonds, 
8/16 at 100.00 
N/R (4) 
1,030,361 
 
  
Kaleida Health, Series 2006, 4.700%, 2/15/35 (Pre-refunded 8/15/16) 
 
 
 
2,625 
  
Dormitory Authority of the State of New York, State Personal Income Tax Revenue Bonds, 
9/16 at 100.00 
N/R (4) 
2,650,069 
 
  
Education Series 2006D, 5.000%, 3/15/36 (Pre-refunded 9/15/16) 
 
 
 
300 
  
Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, Series 2006A, 4.500%, 
2/17 at 100.00 
AA– 
306,705 
 
  
2/15/47 – NPFG Insured 
 
 
 
1,250 
  
Metropolitan Transportation Authority, New York, Transportation Revenue Bonds, Refunding 
11/22 at 100.00 
AA– 
1,526,613 
 
  
Series 2012F, 5.000%, 11/15/26 
 
 
 
840 
  
New York City Transitional Finance Authority, New York, Future Tax Secured Bonds, Fiscal 
5/17 at 100.00 
AAA 
867,997 
 
  
Series 2007B, 4.750%, 11/01/27 (6) 
 
 
 
1,660 
  
New York City Transitional Finance Authority, New York, Future Tax Secured Bonds, Fiscal 
5/17 at 100.00 
N/R (4) 
1,717,336 
 
  
Series 2007B, 4.750%, 11/01/27 (Pre-refunded 5/01/17) 
 
 
 
265 
  
Port Authority of New York and New Jersey, Special Project Bonds, JFK International Air 
12/20 at 100.00 
Baa1 
313,560 
 
  
Terminal LLC Project, Eighth Series 2010, 6.000%, 12/01/42 
 
 
 
7,965 
  
Total New York 
 
 
8,412,641 
 
  
North Carolina – 0.3% 
 
 
 
500 
  
New Hanover County, North Carolina, General Obligation Bonds, School Series 2009, 4.000%, 
6/19 at 100.00 
AAA 
547,190 
 
  
6/01/21 (Pre-refunded 6/01/19) 
 
 
 
 
  
Ohio – 4.1% 
 
 
 
 
  
Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Revenue 
 
 
 
 
  
Bonds, Senior Lien, Series 2007A-2: 
 
 
 
1,345 
  
5.375%, 6/01/24 
6/17 at 100.00 
B– 
1,332,384 
1,465 
  
6.000%, 6/01/42 
6/17 at 100.00 
B– 
1,466,084 
435 
  
5.875%, 6/01/47 
6/17 at 100.00 
B– 
434,234 
3,720 
  
Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Revenue 
6/22 at 100.00 
B– 
3,800,760 
 
  
Bonds, Senior Lien, Series 2007A-3, 6.250%, 6/01/37 
 
 
 
1,475 
  
Ohio Turnpike Commission, Turnpike Revenue Bonds, Infrastructure Project, Junior Lien Series 
2/23 at 100.00 
A+ 
1,723,567 
 
  
2013A-1, 5.000%, 2/15/48 
 
 
 
8,440 
  
Total Ohio 
 
 
8,757,029 
 
  
Pennsylvania – 1.7% 
 
 
 
2,435 
  
Dauphin County Industrial Development Authority, Pennsylvania, Water Development Revenue 
No Opt. Call 
A– 
2,549,932 
 
  
Refunding Bonds, Dauphin Consolidated Water Supply Company, Series 1992B, 6.700%, 6/01/17 
 
 
 
1,000 
  
Pennsylvania Turnpike Commission, Motor License Fund-Enhanced Subordinate Special Revenue 
12/20 at 100.00 
AA– 
1,135,760 
 
  
Bonds, Series 2010B, 5.000%, 12/01/30 
 
 
 
3,435 
  
Total Pennsylvania 
 
 
3,685,692 
 
  
Puerto Rico – 2.3% 
 
 
 
945 
  
Puerto Rico Highway and Transportation Authority, Highway Revenue Bonds, Series 2007N, 5.250%, 
No Opt. Call 
CC 
968,219 
 
  
7/01/31 – AMBAC Insured 
 
 
 
 
  
Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, Series 2007A: 
 
 
 
1,170 
  
0.000%, 8/01/40 – NPFG Insured 
No Opt. Call 
AA– 
274,810 
12,000 
  
0.000%, 8/01/41 – NPFG Insured 
No Opt. Call 
AA– 
2,706,240 
9,015 
  
0.000%, 8/01/54 – AMBAC Insured 
No Opt. Call 
Caa3 
869,767 
23,130 
  
Total Puerto Rico 
 
 
4,819,036 
 
  
South Dakota – 0.2% 
 
 
 
400 
  
South Dakota Health and Educational Facilities Authority, Revenue Bonds, Sanford Health, 
11/25 at 100.00 
A+ 
482,240 
 
  
Series 2015, 5.000%, 11/01/35 
 
 
 
 
  
Tennessee – 0.4% 
 
 
 
795 
  
Chattanooga Health, Educational and Housing Facility Board, Tennessee, Hospital Revenue Bonds, 
1/23 at 100.00 
A+ 
918,495 
 
  
Catholic Health Initiatives, Series 2013A, 5.250%, 1/01/45 
 
 
 
 
  
Texas – 11.8% 
 
 
 
250 
  
Central Texas Regional Mobility Authority, Revenue Bonds, Senior Lien Series 2011, 
1/21 at 100.00 
BBB+ (4) 
305,458 
 
  
6.000%, 1/01/41 (Pre-refunded 1/01/21) 
 
 
 
85 
  
Central Texas Regional Mobility Authority, Revenue Bonds, Senior Lien, Series 2015A, 
7/25 at 100.00 
BBB+ 
103,105 
 
  
5.000%, 1/01/34 
 
 
 
3,000 
  
Dallas Area Rapid Transit, Texas, Sales Tax Revenue Bonds, Senior Lien Series 2008, 5.000%, 
12/18 at 100.00 
AA+ (4) 
3,308,910 
 
  
12/01/23 (Pre-refunded 12/01/18) 
 
 
 
2,500 
  
Fort Worth Independent School District, Tarrant County, Texas, General Obligation Bonds, 
No Opt. Call 
AAA 
2,515,125 
 
  
Refunding Series 2006, 5.000%, 2/15/18 
 
 
 
4,640 
  
Grand Parkway Transportation Corporation, Texas, System Toll Revenue Bonds, First Tier Series 
10/23 at 100.00 
BBB+ 
5,446,942 
 
  
2013A, 5.500%, 4/01/53 
 
 
 
 
  
Harris County-Houston Sports Authority, Texas, Revenue Bonds, Junior Lien Series 2001H: 
 
 
 
1,405 
  
0.000%, 11/15/32 – NPFG Insured 
11/31 at 94.05 
AA– 
772,736 
2,510 
  
0.000%, 11/15/36 – NPFG Insured 
11/31 at 73.51 
AA– 
1,062,860 
2,235 
  
Harris County-Houston Sports Authority, Texas, Revenue Bonds, Third Lien Series 2004A-3, 
11/24 at 62.70 
AA– 
1,046,315 
 
  
0.000%, 11/15/32 – NPFG Insured 
 
 
 
 
  
Harris County-Houston Sports Authority, Texas, Special Revenue Bonds, Refunding Senior Lien 
 
 
 
 
  
Series 2001A: 
 
 
 
3,045 
  
0.000%, 11/15/34 – NPFG Insured 
11/30 at 78.27 
AA 
1,622,010 
4,095 
  
0.000%, 11/15/38 – NPFG Insured 
11/30 at 61.17 
AA 
1,697,418 
2,255 
  
Love Field Airport Modernization Corporation, Texas, Special Facilities Revenue Bonds, 
11/20 at 100.00 
Baa1 
2,580,802 
 
  
Southwest Airlines Company, Series 2010, 5.250%, 11/01/40 
 
 
 
290 
  
North Texas Tollway Authority, System Revenue Bonds, Refunding First Tier Capital Appreciation 
1/25 at 100.00 
AA 
393,840 
 
  
Series 2008I, 6.200%, 1/01/42 – AGC Insured 
 
 
 
2,000 
  
Texas Municipal Gas Acquisition and Supply Corporation III, Gas Supply Revenue Bonds, Series 
No Opt. Call 
A3 
2,276,000 
 
  
2012, 5.000%, 12/15/32 
 
 
 
2,410 
  
Texas Turnpike Authority, Central Texas Turnpike System Revenue Bonds, First Tier Series 
No Opt. Call 
A– 
1,941,400 
 
  
2002A, 0.000%, 8/15/25 – AMBAC Insured 
 
 
 
30,720 
  
Total Texas 
 
 
25,072,921 
 
  
Utah – 1.0% 
 
 
 
5,465 
  
Utah Transit Authority, Sales Tax Revenue Bonds, Series 2007A, 0.000%, 6/15/36 
6/17 at 38.77 
AA– 
2,100,527 
 
  
Virginia – 3.3% 
 
 
 
3,500 
  
Chesapeake, Virginia, Transportation System Senior Toll Road Revenue Bonds, Capital 
7/28 at 100.00 
BBB 
2,975,910 
 
  
Appreciation Series 2012B, 0.000%, 7/15/32 (5) 
 
 
 
1,500 
  
Virginia Public Building Authority, Public Facilities Revenue Bonds, Series 2009B, 5.000%, 8/01/17 
No Opt. Call 
AA+ 
1,572,645 
 
  
Virginia Small Business Financing Authority, Senior Lien Revenue Bonds, Elizabeth River 
 
 
 
 
  
Crossing, Opco LLC Project, Series 2012: 
 
 
 
500 
  
6.000%, 1/01/37 (Alternative Minimum Tax) 
7/22 at 100.00 
BBB 
601,000 
1,510 
  
5.500%, 1/01/42 (Alternative Minimum Tax) 
7/22 at 100.00 
BBB 
1,758,304 
7,010 
  
Total Virginia 
 
 
6,907,859 
 
  
Washington – 3.1% 
 
 
 
745 
  
Seattle, Washington, Municipal Light and Power Revenue Bonds, Series 2015A, 5.000%, 5/01/17 
No Opt. Call 
AA 
772,721 
990 
  
Washington Health Care Facilities Authority, Revenue Bonds, Fred Hutchinson Cancer Research 
1/21 at 100.00 
A 
1,131,639 
 
  
Center, Series 2011A, 5.625%, 1/01/35 
 
 
 
4,000 
  
Washington Health Care Facilities Authority, Revenue Bonds, Providence Health & Services, 
10/22 at 100.00 
AA 
4,774,520 
 
  
Refunding Series 2012A, 5.000%, 10/01/32 
 
 
 
5,735 
  
Total Washington 
 
 
6,678,880 
 
  
Wisconsin – 1.0% 
 
 
 
1,250 
  
Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Marshfield Clinic, 
2/22 at 100.00 
A– 
1,446,013 
 
  
Series 2012B, 5.000%, 2/15/32 
 
 
 
770 
  
Wisconsin, General Obligation Refunding Bonds, Series 2003-3, 5.000%, 11/01/26 
11/16 at 100.00 
AA 
773,095 
2,020 
  
Total Wisconsin 
 
 
2,219,108 
$ 264,325 
  
Total Municipal Bonds (cost $173,844,391) 
 
 
209,252,247 
 
Principal 
  
 
 
 
 
 
Amount (000) 
  
Description (1) 
Coupon 
Maturity 
Ratings (3) 
Value 
 
  
CORPORATE BONDS – 0.0% 
 
 
 
 
             
 
  
Transportation – 0.0% 
 
 
 
 
$ 92 
  
Las Vegas Monorail Company, Senior Interest Bonds (7), (8) 
5.500% 
7/15/19 
N/R 
$ 2,775 
25 
  
Las Vegas Monorail Company, Senior Interest Bonds (7), (8) 
5.500% 
7/15/55 
N/R 
738 
$ 117 
  
Total Corporate Bonds (cost $10,497) 
 
 
 
3,513 
 
  
Total Long-Term Investments (cost $173,854,888) 
 
 
 
209,255,760 
 
  
Other Assets Less Liabilities – 1.5% (9) 
 
 
 
3,206,542 
 
  
Net Assets – 100% 
 
 
 
$ 212,462,302 
 

Investments in Derivatives as of June 30, 2016 
 
 
 
 
 
Interest Rate Swaps 
 
 
 
 
 
 
 
 
 
 
Fund 
 
 
Fixed Rate 
 
 
Unrealized 
 
Notional 
Pay/Receive 
Floating Rate 
Fixed Rate 
Payment 
Effective 
Termination 
Appreciation 
Counterparty 
Amount 
Floating Rate 
Index 
(Annualized) 
Frequency 
Date (10) 
Date 
(Depreciation) 
JPMorgan Chase Bank, N.A. 
$5,250,000 
Receive 
USD-BMA 
1.190% 
Quarterly 
7/31/17 
7/31/27 
$13,550 
 
Fair Value Measurements
Fair value is defined as the price that would be received upon selling an investment or transferring a liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment. A three-tier hierarchy is used to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are based on the best information available in the circumstances. The following is a summary of the three-tiered hierarchy of valuation input levels.
Level 1 – Inputs are unadjusted and prices are determined using quoted prices in active markets for identical securities.
Level 2 – Prices are determined using other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3 – Prices are determined using significant unobservable inputs (including management’s assumptions in determining the fair value of investments).
The inputs or methodologies used for valuing securities are not an indication of the risk associated with investing in those securities. The following is a summary of the Fund’s fair value measurements as of the end of the reporting period:
 
Level 1 
Level 2 
Level 3 
Total 
Long-Term Investments: 
 
 
 
 
  Municipal Bonds 
$ — 
$209,252,247 
$     — 
$209,252,247 
  Corporate Bonds 
— 
— 
3,513 
3,513 
Investments in Derivatives: 
 
 
 
 
  Interest Rate Swaps* 
— 
13,550 
— 
13,550 
Total 
$ — 
$209,265,797 
$3,513 
$209,269,310 
* Represents net unrealized appreciation (depreciation).
Income Tax Information
The following information is presented on an income tax basis. Differences between amounts for financial statement and federal income tax purposes are primarily due to timing differences in recognizing taxable market discount, timing differences in recognizing certain gains and losses on investment transactions and the treatment of investments in inverse floating rate securities reflected as financing transactions, if any. To the extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts on the Statement of Assets and Liabilities presented in the annual report, based on their federal tax basis treatment; temporary differences do not require reclassification. Temporary and permanent differences do not impact the net asset value of the Fund.
As of June 30, 2016, the cost of investments (excluding investments in derivatives) was $172,043,266.
Gross unrealized appreciation and gross unrealized depreciation of investments (excluding investments in derivatives) as of June 30, 2016, were as follows:
   
Gross unrealized: 
 
Appreciation 
$37,283,287 
Depreciation 
(70,793) 
Net unrealized appreciation (depreciation) of investments 
$37,212,494 
 
(1) 
  
All percentages shown in the Portfolio of Investments are based on net assets. 
(2) 
  
Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. 
 
  
There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities 
 
  
may be subject to periodic principal paydowns. 
(3) 
  
For financial reporting purposes, the ratings disclosed are the highest of Standard & Poor’s Group 
 
  
(“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings 
 
  
below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment 
 
  
grade. Holdings designated N/R are not rated by any of these national rating agencies. 
(4) 
  
Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, 
 
  
which ensure the timely payment of principal and interest. Certain bonds backed by U.S. Government or 
 
  
agency securities are regarded as having an implied rating equal to the rating of such securities. 
(5) 
  
Step-up coupon. The rate shown is the coupon as of the end of the reporting period. 
(6) 
  
Investment, or portion of investment, has been pledged to collateralize the net payment obligations for 
 
  
investments in derivatives and/or inverse floating rate transactions. 
(7) 
  
Investment valued at fair value using methods determined in good faith by, or at the discretion of, the 
 
  
Board. For fair value measurement disclosure purposes, investment classified as Level 3. 
(8) 
  
During January 2010, Las Vegas Monorail Company (“Las Vegas Monorail”) filed for federal bankruptcy 
 
  
protection. During March 2012, Las Vegas Monorail emerged from federal bankruptcy with the acceptance 
 
  
of a reorganization plan assigned by the Federal Bankruptcy Court. Under the reorganization plan, the 
 
  
Fund surrendered its Las Vegas Monorail Project Revenue Bonds, First Tier, Series 2000 and in turn 
 
  
received two senior interest corporate bonds: the first with an annual coupon rate of 5.500% maturing 
 
  
on July 15, 2019 and the second with an annual coupon rate of 3.000% (5.500% after December 31, 2015) 
 
  
maturing on July 15, 2055. The Fund is not accruing income for either senior interest corporate bond. 
(9) 
  
Other assets less liabilities includes the unrealized appreciation (depreciation) of certain over-the-counter 
 
  
(“OTC”) derivatives as well as the OTC-cleared and exchange-traded derivatives, when applicable. 
(10) 
  
Effective date represents the date on which both the Fund and Counterparty commence interest payment 
 
  
accruals on each contract. 
(WI/DD) 
  
Investment, or portion of investment, purchased on a when-issued or delayed delivery basis. 
(ETM) 
  
Escrowed to maturity. 
(IF) 
  
Inverse floating rate investment. 
 
 
Item 2. Controls and Procedures.

a.  
The registrant's principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the "1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rule 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934 (17 CFR 240.13a-15(b) or 240.15d-15(b)).
 
b.  
There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the registrant's last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting.
 
Item 3. Exhibits.

File as exhibits as part of this Form a separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)), exactly as set forth below: See EX-99 CERT attached hereto.

 
 
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.
 
(Registrant)  Nuveen Select Tax-Free Income Portfolio 3 
 
By (Signature and Title) /s/ Kevin J. McCarthy                    
       Kevin J. McCarthy
     Vice President and Secretary
                                         
Date:         August 29, 2016        
 
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 (Signature and Title) /s/ Gifford R. Zimmerman            
       Gifford R. Zimmerman
     Chief Administrative Officer (principal executive officer)
                        
Date:         August 29, 2016        
 
By (Signature and Title) /s/ Stephen D. Foy                         
 
     Stephen D. Foy
     Vice President and Controller (principal financial officer)
                                                                                         
Date:         August 29, 2016