JetBlue Airways is taking legal action against the state of Florida, alleging that it has been overcharged by more than $631,630 in corporate income tax. This claim was officially filed in Leon County on July 19. The airline is challenging the entire amount of additional corporate income tax assessed for the years 2019 through 2021.
According to JetBlue, the Florida Department of Revenue issued a “Notice of Proposed Assessment” (NOPA) in March, which the airline believes overreaches by using an incorrect formula for assessing its corporate income tax. JetBlue is seeking to have its tax bill dismissed and recalculated to reflect a lower amount.
JetBlue’s Legal Challenge: The Core Issue
The crux of JetBlue’s complaint lies in the state’s method of taxing commercial airlines based on “revenue miles.” This term refers to the distance traveled by paying customers. Florida uses a designated area known as “the box” — geographical boundaries around the state’s coast where commercial aircraft are permitted to operate — to calculate these taxes.
JetBlue argues that the state’s formula is flawed because it includes miles flown beyond Florida’s coastline, even though the airline operates both in and out of the state. The complaint asserts that this method violates due process, as there is no constitutionally significant “definite link” or “minimum connection” to aircraft flying outside Florida’s geographical borders.
Unrelated Developments: Route Reductions
In a seemingly unrelated move, JetBlue announced plans less than two weeks ago to reduce routes at several airports nationwide, including Tallahassee International Airport’s sole direct flight between Tallahassee and Fort Lauderdale. Aviation experts suggest that this restructuring decision is likely not connected to the ongoing lawsuit.
As of now, the state has not yet filed an answer to JetBlue’s lawsuit, according to court dockets. The outcome of this legal battle could have significant implications for how corporate income tax is assessed on airlines operating in Florida.
For further details, contact Economic Development Reporter TaMaryn Waters at tlwaters@tallahassee.com and follow @TaMarynWaters on X.
