I wouldn't go as far as turning someone in, sure it's wrong but you probably haven't spent time in jail, those people who have know it's not a fun place to be (me, for some bullshit, not stealing or anything like that).
Something of that nature shouldn't land you in jail, pay the person back or give them their shit back the way it was, if they don't pay then put them there. The US is retarded, they want to keep tabs on everyone and are putting everyone in jail any chance they can get to get a record on them, even for a minor traffic offense.
I know some people will have completely different opinions because they were never in jail on some bullshit charges or something they didn't do. Either way stealing shouldn't put you in jail, the person stealing should have to pay the person back for the full cost of the item plus intrest and extra for personal use (can't remember the name). If they don't pay then put them in jail for not abiding the situation.
.02 from a convict, lol.