JetBlue Airlines suing Florida over what it calls too much in corporate income tax

JetBlue Airways is suing the state of Florida for overcharging the airline by more than $631,630 in corporate income tax, according to its complaint that was filed in Leon County.

The complaint, filed July 19 in Leon Circuit Civil court, says the airline contested the "entire amount of the additional corporate income tax for the years 2019 through 2021...."

JetBlue claims the Florida Department of Revenue issued a "Notice of Proposed Assessment," or NOPA, in March and is overreaching when applying its formula for assessing corporate income tax on the airline. The airline wants its tax bill thrown out and recalculated for a lower amount.

Less than two weeks ago, the New York-based, low-fare airline announced plans to reduce routes at half a dozen airports nationwide, including Tallahassee International Airport's sole direct flight between Tallahassee and Fort Lauderdale.

Aviation experts say the lawsuit and JetBlue's restructuring decision are likely unrelated.

JetBlue lawsuit: Flying in and out of 'the box'

Florida, according to the complaint, said commercial airlines are subject to pay taxes on "revenue miles," a means of measuring how many miles a paying customer travels.

A designated area commonly referred to as "the box" — geographical boundaries around the state's coast where commercial aircrafts are permitted to operate — is where airlines are subject to pay corporate income taxes.

The problem, the complaint explains, is that the state is using a flawed formula for billing JetBlue for miles that go beyond Florida's coastline since the airline travels in and out of the state.

That violates due process "because there exists no constitutionally significant 'definite link' or 'minimum connection' to aircraft flying outside the geographical border of the state of Florida," the complaint says.

A complaint in a lawsuit tells one side of a story. The state has yet to file an answer to the lawsuit, court dockets show.

Contact Economic Development Reporter TaMaryn Waters at tlwaters@tallahassee.com and follow @TaMarynWaters on X.

This article originally appeared on Tallahassee Democrat: JetBlue Airlines suing Florida over what it calls too much in corporate income tax