I should have tested this before asking. I just made another post using a recent tag for the second time and it now shows up in the hot tags list. So, it would appear that things are working as they should.
Let me ask this though. What options are available for displaying tags. I would like to display more tags, or at the very least, I would like to display the most popular AND most recent tags. The sort now appears to display only a certain number of tags with only a single use, and out of those tags displayed, they are the oldest tags.