There is no reason why the FairTax can't work at the state level. I know there have been some discussions in the legislature in the past, but to no avail. Since the lege is now in session, please consider contacting your state rep and state senator about replacing property taxes with the FairTax.
If we can get the FairTax instituted at the state level, it can serve as test for the FairTax on the national level. Unfortunately, my state rep and state senator are both opposed (they are Democrats).