Dams Safety NSW looks after the safety of all dams in the state.

Councillors voted on Tuesday to make a submission against the levy on the belief it was another example of "cost-shifting".

Cr Glenn Inglis said it was the "gold medal" standard of cost-shifting.

"Is this a new path the state is going down where local government has to pay for the cost - is it attempting to recover 100 per cent of the cost of the dam safety committee?" he asked.

"That would make me even crankier because dams don't just benefit Tamworth, they benefit the environment, the state and they are part of the Murray Darling Basin network.

"At a minimum we should be making a submission to say the cost transfer is not justified."

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The council is opposed to paying the levy on the view it is cost-shifting, TRC water and waste director Bruce Logan said.

"We're not a bottomless pit in terms of our revenue," he said.

"We will have to go back to the council and if the council deems fit to go to customers to increase charges because of additional costs and expenses imposed by government and rising costs.

"It's always a risk that we may have to increase charges to pay for the additional burden being placed on the council and community."