Geo target by state in Ad Group?

I want to set up some campaigns where I target customers in US states where our competitor is subject to sales tax but we are not.

I'd like to set up a campaign with state ad groups but I believe I need a campaign for each state, is that correct?

 

Yes that's true, you'll need a Campaign for each state.

 

That's what I was afraid of. I may just set up generic campaigns by state and say that they can save sales tax without directly comparing to the competitor in that state.