Hmm, that's a good question and I don't have a particularly firm answer. I would personally be resistant to the idea in most cases as it's generally possible to answer questions broadly. If there are specific regulations that are relevant to a particular question, it might possibly make more sense to have the legislation as a tag, though that might not be easily discoverable.
My fear with location tags is two fold, first, there is likely to be a proliferation of locations that people try to tag, often for the wrong reasons.
Second it is likely to result in people location tagging things that could be answered more generally, which would be of more use to the community at large. In general, the more situations a question/answer can cover, without sacrificing quality or depth, the better. Sometimes there truly are specific factors that must limit the question and answer, but over tagging will likely lead to self limiting even when it is not necessary.
I'm not saying it couldn't end up being where we need to go anyway, but I don't see a ton of value being added by it, but I do see a lot of potential maintenance headaches and filling issues along with potential content problems that it could cause. In this particular case, I'd say it doesn't seem strong enough of an argument without more cases that cumulatively push for a need, but that's just my personal take on it. I wouldn't personally create one, but I also probably wouldn't raise a problem with it unless the issues I mentioned above started occuring.
