Taxonomy terms as tokens

Thank you for a great module. The admin's behind-the-scenes file control are now much improved.

However, after hours of searching I'm wondering if someone could save me more time with a heads up about whether what I'd like to do is possible or not. I'd like to be able to use taxonomy terms as part of the file path. Seems it could be done in 6.x but what about 7.x. If it is possible in 7.x could you point me in the right direction?

Thank you