dnsmasq driver not compatible with dnsmasq pre 2.53
The above email thread does a great job of explaining what's wrong. When using dnsmasq 2.48 with centos 6.3, the set:TAG and referencing that tag do not work. The attached hacked patch solves my problem. However, a more elegant solution would be to detect the version of dnsmasq via dnsmasq --version, and change the options that way.