If you shoot your neighbor then you go to jail.
if you call the authorities you have basically shot the dog by proxie!
A) talk directly to the owner!

B) Make friends with the owner and slowly and stealthily introduce good dog handling principles! maybe by showing him how you handle your dog without actually telling the owner that thats what your doing!

C) my favorite! steal the dog and give it to a family in Texas. (Your sisters maybe!?)