(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 does not include student housing or , parsonages or residential property owned by a nonprofit organization and used to provide housing and comprehensive services to persons with developmental, cognitive or mental disabilities.
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.