Ariz. Admin. Code § R15-5-1507
A lessor’s gross income from the rental of tangible personal property to a school, church, or other nonprofit organization is taxable under the personal property rental classification unless a specific statutory exemption, exclusion, or deduction applies.
Amended by final rulemaking at 6 A.A.R. 3091, effective July 18, 2000 (Supp. 00-3).