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Morrowind doesn't have the ability to mark individual items as stolen. Instead, when you steal something, all items of that type are marked as stolen, including items of that type you acquire later.

This can get expensive if you lose track of having stolen a rare alchemy component, or soul gem, only to have all such items removed from your inventory by a guard.

What I don't know, but am afeared to find out the hard way - and don't want to go through the trouble of discovering on my own if it's already known, is whether or not having those items confiscated removes the 'stolen' flag from subsequent acquisitions.

In other words, if I steal some void salts, pick up four more in the wild(and thus now possess 5 'stolen' void salts), then get arrested and have stolen items confiscated, including those 5 void salts.... is it again safe to collect void salts? Or will those still continue to be marked 'stolen' and get confiscated by guards whenever I'm arrested?

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Once you steal an item, it will continue to be marked as "stolen" for the rest of the game, even if you acquire further copies legally.

Source: https://en.uesp.net/wiki/Morrowind:Crime#Illegal_goods

Specifically the section "2.1 Stolen Items" under Illegal Goods. It even includes an example of a Thieves' Guild quest where you are required to steal a diamond, which will make all further diamonds marked as stolen for the rest of the game:

An unusual quirk of this rule is that it applies to all items of the type that you stole, even if you get rid of the stolen ones and acquire others legally. Thus if you steal diamonds from Nalcarya of White Haven during a certain quest for the Thieves Guild, any diamond you acquire at any point for the rest of the game is marked as being stolen from Nalcarya. This is true even if you dispose of any extra diamonds you didn't give to Habasi, by selling, dropping, alchemy, etc. You simply may not sell diamonds to Nalcarya ever again, or she will accuse you of theft.

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    Space Turnip, I read that. It's not clear to me that having stolen goods removed doesn't clear the 'stolen' flag. But certainly it reads that way. It just feels like a weird oversight to mark something as stolen, even after it's been 'recovered' by the authorities... Commented Feb 2, 2023 at 16:34

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