It's basically outlined at Create Folder Structures based on Tags in the Mac Documentation.
You can use /Users/YourUserName/Some/Other/Folders/ as absolute path or ~/Some/Other/Folders/ as path relative to your home directory.
If you only want to rename an existing folder, you can also use an action Format tag field for field _DIRECTORY, but I'm not sure what you're trying to achieve.
Can you share how you think you've deleted the files?