Burnouts with cars are a form of anti-social behaviour. It should not be impounded the person should actually learn a lesson and acknowledge they have been bad an therefore, they will know not to do it again next time. Teens especially will never learn a lesson since most of them tend to find that a good idea.
Damage from burnouts are in the form of rubber marks left on the surface (concrete or asphalt).
Assuming the donut/burnout is not done on private property that belongs to the person performing the burnout, either the public or the owner of the property will ultimately pay for it. It should be classified as destruction of property for this reason and the violator should be ticketed (and the rightful owner should have the option to sue for damages). Normal procedures will take place from there - tickets come with due dates, failure to pay/appear results in a bench warrant and at that point the violator will be held in jail until the court has a hearing on their case.
They Should not go to jail because they are doing donuts/burnouts unless they are in a public area people break the law everyday and its fine if a person j walks in a busy street but if they decide to do a burnout all hell brakes out and how they are breaking the law and stuff so please just stop before you embarrass yourself
If they are doing it in a public place, sure, arrest them, that is rather anti-social, but if they are doing it away from people and are just having fun, then there is no harm in it and no reason for them to be arrested. It's like arresting a 6 year old for waving a toy gun around a saying "pow pow" on grounds that the child is threatening to shoot people and may become a terrorist.