RUSK, Texas – WFAA, KHOU’s sister station in Dallas, has learned the Texas State Railroad, the vintage rail line in east Texas that operates the Polar Express, is in trouble again.
The Texas State Comptroller confirms the rail line owes the state $250,000 in back sales taxes covering operations dating back to October of last year.
A recent WFAA investigation uncovered the railroad's management company, Iowa Pacific Holdings, is experiencing numerous financial problems in several states.
Last December, the rail line closed down operations in east Texas and laid off more than two dozen employees.
The railroad vowed to re-open and was selling tickets for an excursion this weekend, but all sales have now been halted until the debt is paid.
Railroad officials say they still hope to operate and honor all ticket sales this weekend.
