JetBlue Airways is suing the Florida Department of Revenue over $631,000 in corporate taxes, arguing the state unlawfully extends its geographical boundaries, resulting in unconstitutional double taxation.

JetBlue Airways initiated legal action against the Florida Department of Revenue on July 19, challenging an assessment of additional corporate income taxes for the years 2019 to 2021.

In the complaint, JetBlue argues that Florida’s tax statutes improperly extend the state’s geographic boundaries beyond those defined by state and federal constitutions. The filing states that the Florida Constitution limits the state’s geographical boundaries to three miles from the Atlantic coast and three leagues from the Gulf coast, far less than the area the Department of Revenue’s preferred geographical area — termed “the box,” — to determine revenue miles subject to state tax.

As a result, JetBlue argues the tax assessment exceeds Florida’s jurisdiction, infringing on the Commerce Clause and the Due Process Clause of the U.S. Constitution. The state calculates taxes levied against airlines based on the revenue miles flown within Florida for flights that either depart from or arrive at its airports. The disputed amount, including interest, totals $631,632.11.

According to the airline, Florida’s tax statutes purportedly extend up to 450 kilometers into the Gulf and 177 kilometers into the Atlantic, encroaching into parts of Georgia and Alabama.

“[S]ubstantial portions … are in international waters and fall outside the boundaries of both Florida and the United States,” the complaint states. “For example, the western boundary extends approximately 280 miles beyond Indian Shores Beach outside St. Petersburg, Florida, and extends approximately 110 miles beyond Atlantic Beach outside Jacksonville on the eastern side. In addition, [the legal boundaries] includes portions of the states of Alabama and Georgia.”

The airline further asserts that including revenue miles from flights over international waters and neighboring states leads to double taxation, as these miles are taxed by other jurisdictions. Furthermore, JetBlue argues that the state does not provide services related to these flights, questioning the legitimacy of the tax assessment.

The airline further contended that it calculated and paid its taxes based on the constitutionally defined borders. During an audit, however, Florida’s Department of Revenue applied a broader interpretation of the state’s borders, identifying a shortfall and issuing a tax notice in March. The notice included $483,827 in unpaid taxes and $147,805.11 in interest, according to the filing

The lawsuit seeks to invalidate the assessment on several grounds, including the alleged overreach of Florida’s jurisdiction, violation of the federal Supremacy Clause, and the lack of substantial nexus required for state taxation of interstate and foreign commerce. JetBlue is also challenging the fairness of the apportionment method, arguing it imposes an undue burden on its operations and is inconsistent with constitutional principles.