From the Federal Law Relating to Display:
"Nature of Codification of Customs and Rules
The Flag Code is a codification of customs and rules established for the use of certain civilians and civilian groups. No penalty or punishment is specified in the Flag Code for display of the flag of the United States in a manner other than as suggested. Cases which have construed the former 36 U.S.C. § 17521 have concluded that the Flag Code does not proscribe conduct, but is merely declaratory and advisory."
I am sure that the city of Reno has a penalty for destruction of private property, however.
However, theft is against the law in Reno and where ever the Stars and Stripes flies.