Why can I not delete the locality name on my 1099-G? There were not any local taxes deducted, but the amount can not be zero as long as a locality name is listed.

If you are in the review section, exit the review and go back to the income section.   Search for 1099-G, use the jump to link to go back to your forms.   Select the 1099-G and edit it from there.   Then go back to the review.