Things like this are probably handled on a situational basis. There are different laws in different states, of course, and each must handle this situation the way that suits them best. Me personally, I am not interested in keeping good relations or any relations at all with my neighbors if they are allowing dogs to roam all over the place. I have perimeter fenced two of my five acres so that a dog would have to dig or climb over to get to my birds. Recently, I caught the neighbor's dog way up on my property (rooster warned me), outside the fence, watching the birds. We called the neighbor, told him that the dog was up here near the chickens and he said he would handle it. Just found out that he put up an invisible fence to help contain the dog. Not all neighbors are so cooperative, however.
I do not wish to kill someone's pet. It would be very upsetting to shoot any dog, unless it's attacking a human, however, why do their pets take precedence over my pets, my birds? Realistically, they don't and shouldn't.