I'm not sure how this should work but I have a view that spits out taxonomy terms. I would like to create an article and add tags to the article that will update the taxonomy terms. I was also thinking it would make sense to update the path so the terms links to the article. Is this possible or how is this done? I have already created a tags field on my custom data type.
A path is the name for the term or article. Giving a tag an alias that matches an article (or vice versa) is not creating an override to reroute the display. To link a term to an article, you will want to add a field to the content type (article) that is based upon the vocabulary. You access this through admin/structures/content type/manage fields/add.