Stripe Didn't Shoot the Sheriff…but He Did Blow Up the Deputy
Sheriff Frank's patronizing and ineffective, and his bad policing puts innocent lives at risk. Plus, he tries to get a Christmas tree for free just because he's the sheriff.
During the movie's climax, the Sheriff and his deputy sit and watch a man in a Santa Claus suit get eaten by gremlins. They don't intervene. While they're goggling at this scene, Stripe cuts the brake cable, leading to their car going out of control and crashing. There's an explosion in the background, suggesting that neither the Sheriff nor deputy made it out alive.
Yes, this is a PG-rated comedy movie in which cops die. The '80s were weird.