This kind of outrage has been going on for a decade or more in some locations. It is govt THEFT. It also violates the equal protection clause of the constitution since one drunk may be driving a new Mercedes and another a 20 year old Chevy. The penalty for the one is vastly greater than the other. The sale of these proceeds often goes to buy the local police new equipment so they directly benefit from this THEFT.
It has been widespread on the federal level since the Reagan Administration, as part of the "war on drugs." But the legal principle goes back to the very First Congress, in 1789, which passed a law allowing fofeiture of a ship used in smuggling (evasion of customs duties), regardless of whether the owner of the ship knew about smuggling.