Where do confiscated items go in Markarth? [duplicate]
Solution 1:
"Enter Cidhna Mine and you will have to pickpocket a key to the mine off of one of the silver-blood guards. once you have the key, there are tunnels and one leads to a cell door, on the other side is a room. unlock the door with the key and enter the two chests inside, that's where the evidence and prisoner belongings are held. It took me a while to find the Markarth evidence chest." Source.
Note that if you are arrested again, the items in the chest will disappear.