NEWS & INSIGHTS
DOR Prevails in JetBlue Challenge to Florida Airline Apportionment Formula
In September 2025, the Florida Department of Revenue secured final summary judgment in JetBlue’s apportionment case. The Leon County Circuit Court upheld Florida’s coordinate-based formula and rejected JetBlue’s Commerce Clause claims. JetBlue has since filed a motion for rehearing and a request for judicial notice.
DOR Prevails in JetBlue Challenge to Florida Airline Apportionment Formula
Date of Judgment: September 1, 2025 · Court: Second Judicial Circuit, Leon County · Case No.: 2024-CA-1177
Background of the Case
JetBlue Airways Corporation challenged Florida’s corporate income tax apportionment method for airlines under section 220.151(2)(c), Florida Statutes. This provision apportions airline income to Florida based on “revenue miles in this state” over “revenue miles everywhere.” The statute defines “revenue miles in this state” using coordinates that extend offshore, often referred to as the “Florida Box.”
Recent Procedural History
- December 18, 2024: Court dismissed several counts of JetBlue’s complaint, including the Supremacy Clause and Foreign Commerce Clause claims, with prejudice.
- March 25, 2025: JetBlue filed its Second Amended Motion for Summary Judgment.
- May 30, 2025: The Department of Revenue filed its Motion for Summary Judgment.
- September 1, 2025: Court entered final summary judgment for the Department of Revenue.
Court’s Ruling
The court issued Final Summary Judgment in favor of DOR, upholding Florida’s statute and DOR’s assessment attributing about 7% of JetBlue’s income to Florida. The court held that this was fair compared with JetBlue’s business activity in the state, which approached 20%. JetBlue’s Commerce Clause and Due Process claims were rejected.
Internal Consistency Analysis
The court found Florida’s formula internally consistent. Although JetBlue argued that including offshore miles would lead to multiple taxation, the court concluded that the statute did not inherently discriminate against interstate commerce.
Post-Judgment Developments
- Motion for Rehearing: JetBlue argued the statute is facially unconstitutional, that the internal consistency test was misapplied, and that federal flyover restrictions were misunderstood.
- Request for Judicial Notice: JetBlue asked the court to recognize Florida’s constitutional boundaries in the record.
Implications and Status
The judgment remains in effect, with JetBlue’s rehearing motion and judicial notice request pending.
© 2025 Jeanette Moffa. All Rights Reserved.
The Leon County Circuit Court entered final summary judgment for the Department of Revenue and upheld application of the airline apportionment statute to JetBlue.
Section 220.151(2)(c), Florida Statutes, which apportions airline income using “revenue miles in this state” over “revenue miles everywhere.”
Approximately seven percent of JetBlue’s income.
The court treated internal consistency as a hypothetical test and concluded the statute is internally consistent and does not produce unconstitutional multiple taxation.
The court found substantial nexus and external consistency satisfied and concluded the tax is fairly related to services provided by the state.
Yes. The court determined the apportionment was fairly attributable to JetBlue’s Florida activities and satisfied due process.
The order noted that the record was limited and that more development might be required if appellate review demands a different internal-consistency analysis.
JetBlue filed a motion for rehearing and a request for judicial notice of Florida’s constitutional boundaries.
A shorthand for the coordinate-based definition of “revenue miles in this state,” which includes offshore areas contiguous to Florida.
The final summary judgment remains in effect in favor of the Department of Revenue; JetBlue’s post-judgment filings are pending at the trial court.
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Jeanette Moffa, Esq.
(954) 800-4138
JeanetteMoffa@MoffaTaxLaw.com
Jeanette Moffa is a Partner in the Fort Lauderdale office of Moffa, Sutton, & Donnini. She focuses her practice in Florida state and local tax. Jeanette provides SALT planning and consulting as part of her practice, addressing issues such as nexus and taxability, including exemptions, inclusions, and exclusions of transactions from the tax base. In addition, she handles tax controversy, working with state and local agencies in resolution of assessment and refund cases. She also litigates state and local tax and administrative law issues.