(e) Sanitation services provided to the tax- exempt entity and not otherwise recovered through user fees or other charges; and

(f) Any services other than education and welfare provided to the tax-exempt entity and not otherwise recovered through user fees or other charges.

(2) The establishment of service charges is not mandatory, but rather is at the discretion of the municipality in which the exempt property is located. The municipal legislative body shall determine those institutions and organizations on which service charges are to be levied by charging for services on any or all of the following classifications of tax exempt real property:

(a) Residential properties currently totally exempt from property taxation, yet used to provide rental income. This classification shall not include student housing or parsonages.

If a municipality levies service charges in any of the classifications of this subparagraph, that municipality shall levy these service charges to all institutions and organizations owning property in that classification.

(3) With respect to the determination of service charges, appeals shall must be made in accordance with an appeals process to be provided for by municipal ordinance. Appeals concerning the assessed value of any property against which a service charge is levied must be undertaken in accordance with subchapter 8.

(4) The collection of unpaid service charges shall must be carried out in the same manner as provided in Title 38, section 1208.

(5) Municipalities shall use the revenues accrued from service charges to fund, as much as possible, the costs of those services reduce the municipality's tax commitment as provided in section 709-C.