Demo:

Download:

Forked Flat-UI Free on GitHub

For the list of changes, please see this commit.

HTML:

<div class="form-group">
   <input name="tagsinput" class="tagsinput" value="Pennsylvania" />
</div>

NOTE: The <div class="form-group"> block is needed to have a parent element with position: relative style so the dropdown could be displayed correctly.

JavaScript:

$(".tagsinput").tagsInput(
   autocomplete : {
     name: 'states',
     limit: 4,
     local: ["Alabama","Alaska","Arizona","Arkansas","California","Colorado","Connecticut",
     "Delaware","Florida","Georgia","Hawaii","Idaho","Illinois","Indiana","Iowa","Kansas","Kentucky",
     "Louisiana","Maine","Maryland","Massachusetts","Michigan","Minnesota","Mississippi","Missouri",
     "Montana","Nebraska","Nevada","New Hampshire","New Jersey","New Mexico","New York","North Dakota",
     "North Carolina","Ohio","Oklahoma","Oregon","Pennsylvania","Rhode Island","South Carolina",
     "South Dakota","Tennessee","Texas","Utah","Vermont","Virginia","Washington","West Virginia","Wisconsin","Wyoming"]
   }
);