Which of the following is an example of a tax-exempt rental?

The correct answer is schools and churches because these entities are often classified as non-profit organizations and are typically not subjected to property tax, which extends to the rental income they may generate from leasing space. In many jurisdictions, these locations are specifically identified as tax-exempt under sections related to education or religious purposes in tax codes. This exemption reflects the societal benefits that schools and churches provide, allowing them to allocate more resources toward their primary missions instead of tax liabilities.

In contrast, hotels and motels, airports and train stations, and restaurants and cafes are considered for-profit entities. They generate income through commercial activities and, as such, are generally responsible for taxes on their properties and rental activities. Each of these businesses contributes to local economies but does not benefit from the same tax-exempt status afforded to educational and religious organizations.