We present a family of quantum error-correcting codes that support a universal set of transversal logic gates using only local operations on a two-dimensional array of physical qubits. The construction is a subsystem version of color codes where gauge fixing through local measurements dynamically determines which gates are transversal. Although the operations are local, the underlying code is not topological in structure, which is how the construction circumvents no-go constraints imposed by the Bravyi-Konig and Pastawski-Yoshida theorems. We provide strong evidence that the encoding has no error threshold in the conventional sense, though it is still possible to have logical gates with error probability much lower than that of physical gates.