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Tags are very different from labels. You can have an infinite(?) number of uniquely-named tags, which makes working with them a little slower performance-wise. This is likely why physics only uses labels. Also, tags don't mark an entire object as having that tag; it is a single point in space within the scene and that's all. So when you use a trigger zone to detect the tag, that point in space must be within the zone to be detected; not just any point the sculpt occupies.
Labels will get you want you want; and they're pretty easy to use.
What are you specifically trying to do? Maybe there's more specific advice I could give.