To understand the meaning of forfeiture, one must first understand the various forms of forfeitures. Any possession of real estate by the United States government is technically referred to as "fugitive property." When property is "fugitive," it means that the government has an interest in the property in question, either to develop it for tax purposes, to use it as a lender's security for a loan, or to return it to the owner if the owner does not pay off the debt. If a person does not payback taxes, for example, that person is said to "forfeit" the property. A person may be executed for criminal reasons, but also for reasons of forfeiture where it is simply impractical to return property to the person.
It is easy to see why executing someone for a crime is called forfeiture. Simply put, without compensation (compensation being paid by the owner of the property) the person who committed the crime will be executed. But just what does "forfeiture" mean?
The states and the federal government have all created different methods for imposing forfeiture. In general, forfeiture occurs when a person does not pay off the taxes owed on the property that he receives, or commits some other crime. In most states, this crime must have taken place at the same time as the receiving of the property. But in some states the crime is only necessary for the property to be seized. For example, if a person goes on a tax fraudulently for several years, that person may never be brought to trial for the crimes that he commits, because the statute of limitations governing tax fraud expires.
In the states, property seizure and forfeiture laws are usually implemented against individuals. However, some property may be seized under the Stalegal Act, which permits seizures of bank or savings accounts, and certain written materials. Seizures can also be made under the laws covering criminal forfeitures, including those that occur when a person fails to appear at scheduled court appearances. Seizures can also occur under the civil process for forfeiture, including for outstanding traffic tickets. The court will issue an order for the removal of the item if the owner does not settle the payment or appears at all scheduled court proceedings.
Some people are suspicious of the very concept of forfeiture. If forfeiture law sounds suspicious, it probably means that something cannot be located to compensate an owner for something that he has wrongfully done with his property. There are two main theories about the enforcement of forfeiture laws. The first theory is that forfeiture is a punishment in itself, and the second theory is that forfeiture is an enhancement of punishment.
One might think that an innocent person is punished with forfeiture because the person has been found to have committed a crime. This is not really so, however. In most states, forfeiture is a punishment for the commission of a crime. That is to say, if a person steals something that someone else has already owned, then the thief can be punished for stealing that property. But if a thief tries to hide or ship stolen property without actually having the goods at his own expense, then the thief may face the forfeiture of that property for the crime he committed.
A different view of what forfeiture is really is the view that a person who owns property can be seized and forced to give it up by either the state or the government. Usually this is done if the owner is found to have violated some type of law. He may have engaged in organized crime, he may have been involved in business scams, or he may have been involved in any other way that makes it unsafe for him to retain possession of his property. States usually only seize and sell seized property if the owner is delinquent on his tax returns or other financial obligations to the state.
Another view of forfeiture is that it is actually a punishment. The state punishes a person who fails to pay his tax bill, for example, and then goes into exile. If the fugitive returns to the state and is prosecuted again for his crime, then the second time he goes to prison he has to pay the full amount of back taxes plus fines. If the second time he does not pay, then the third time he is imprisoned, and so on.
