Saying that Wal-Mart pays so little its employees are often forced to sign up for Medicaid and other government assistance, a group of legislators wants to put a special sales tax on the store and other big-box retailers to reimburse the state for the subsidies it provides their workers.

“It is well documented that in some Wal-Mart stores, when you apply for a job you also receive an application for public assistance and Medicaid,” said Rep. Arthur Lerman, D-Augusta, the chief sponsor of a bill that would levy a 3 percent tax on gross sales at big-box stores.

“Wal-Mart is the symbol of what is wrong about ‘big boxes.’ And, unfortunately, due to their success, they are setting the norm for all large retailers,” Lerman said, in terms of low wages and poor or non-existent health care and other benefits.

Lerman’s bill was co-sponsored by 26 Democratic legislators, including Rep. Christopher Barstow of Gorham, Rep. Jane Eberle of South Portland, Rep. David Farrington of Gorham, Rep. Stan Gerzofsky of Brunswick, Rep. Deborah Hutton of Bowdoinham, Rep. Hannah Pingree of North Haven and Rep. Thomas Watson of Bath.

It would raise between $60 and $90 million a year, according to Lerman, and two-thirds of the tax collected would go to the Dirigo Health fund to provide insurance to individuals and their families who work at big-box stores. The rest would be used to support small business development.

Rep. Harold Clough, R-Scarborough, a member of the Taxation Committee, which held a hearing on the bill on Monday, said, “I’m pleased to say I’m not one of the sponsors.”

“I’m getting really tired of this Wal-Mart bashing,” he said. “They sell products that people want to buy.”

Under the legislation, big-box stores are defined as covering 60,000 square feet or more and being located outside of a downtown. That would cover stores like Wal-Mart and Home Depot and even Sears and J.C. Penney in some locations.

A representative from Hannaford supermarkets said the tax would affect some of her stores as well. Lerman said he planned to amend the bill to exempt supermarkets and certain Maine-owned stores.

Jim McGregor of the Maine Merchants Association (MMA) called the big-box tax, “discriminatory, punitive and perhaps unconstitutional.” He said that while many of the small businesses he represents don’t like Wal-Mart, targeting them goes against the notion of a free market economy.

“Do you want the government getting involved to level that playing field?” he asked. “Who are we going to get tomorrow?”

Wal-Mart is a member of the MMA.

Chris Hall of the Maine State Chamber of Commerce also spoke out against the tax.

He said if Wal-Mart and other big-boxes were taxed because they don’t provide health insurance, then a lot of small businesses should be taxed as well.

“Wouldn’t the logic be to apply this tax to everybody who doesn’t provide health care?” Hall asked, adding, “We are acutely aware the employers who don’t provide health care in this state are predominantly small businesses.”

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