Under the TABC, which scenario would be considered an illicit beverage?

• A. Alcohol legally manufactured and taxed.
• B. Alcohol illegally made, sold, or possessed, or taxes unpaid.
• C. Alcohol sold with a valid permit.
• D. Alcohol produced under license.

Answer: (B)

Illicit beverages are those produced, sold, or possessed in violation of the law, or where the required taxes haven’t been paid. The scenario described fits this precisely: alcohol illegally made, sold, or possessed, or taxes unpaid. The other options describe compliant activities—legally manufactured and taxed, sold with a valid permit, or produced under license—so they are not illicit. A helpful note: even if alcohol is produced under license, not paying taxes would still make it illicit.