There is no clear answer on whether baiting coyotes is allowed in AZ. It depends on the circumstances. Here are the regulations that apply to feeding/baiting wildlife.
No baiting is allowed for taking big game (Commission Rule R12-4-303)
No baiting is allowed for taking migratory birds
No feeding of wildlife is allowed in counties that have more than 280,000 people, except for birds and squirrels. (ARS 13-2927)
The activity cannot create a public nuisance (ARS 13-2908)