JETBLUE AND FLORIDA ARGUE OVER STATUTORY INTERPRETATION
November 22, 2024
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In a recently filed motion for summary judgment in Florida state court, JetBlue argues that the state’s Department of Revenue (“DOR”) violates the commerce clause of the United States Constitution by imposing a tax on flight miles occurring outside the state. According to JetBlue, the method used by DOR counts miles flown outside the state for tax assessment purposes. In response, Florida argues that the authority to determine how taxes are apportioned rests within its plenary power and further asserts that the notion that states “must strictly look to geographical boundaries when determining the source of that income” has consistently been rejected by higher courts. A challenge to Florida’s method for apportioning income arose after JetBlue included only revenue miles flown within the state’s border, leading to a $630,000 tax bill from tax authorities.
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