I like the anti hunter knee jerk reactions in here. "Guys a moron cut off his hands. ", that is so stupid, it should be deleted.
Lets look at the facts, without emotion.
It is against the law, to let your dog run loose, accident or not.
Coyotes are in season year round, with a valid PA hunters lic.
He was on his own property, which means, he has the right to shoot any dog, that is trespassing.
Now, if he did see the tag that indentified it as a police dog, I'm fairly certain he would not have shot. But maybe not, He was no doubt angry that somebodys dog was running the game away.
If he did think it was a coyote,(which is quite possible, low light, and with the inbreeding going on easy mistake. ) he had every right to shoot.
If anyone should be charged with anything, the police should be charged for not keeping their animal under control.
BTW, if I see a GS in my woods, its dead. Along with any other breed I consider dangerous, or I don't know the dog. And I like dogs.