diff --git a/app/assets/javascripts/admin/enterprises/controllers/tag_rules_controller.js.coffee b/app/assets/javascripts/admin/enterprises/controllers/tag_rules_controller.js.coffee
index 4b007c7744..e8c95558df 100644
--- a/app/assets/javascripts/admin/enterprises/controllers/tag_rules_controller.js.coffee
+++ b/app/assets/javascripts/admin/enterprises/controllers/tag_rules_controller.js.coffee
@@ -1,7 +1,26 @@
 angular.module("admin.enterprises").controller "TagRulesCtrl", ($scope) ->
-  $scope.groupedTagRules = $scope.Enterprise.tag_rules.reduce (groupedTagRules, rule) ->
-    key = rule.preferred_customer_tags
-    groupedTagRules[key] ||= []
-    groupedTagRules[key].push rule
-    groupedTagRules
-  , {}
+  $scope.tagGroups = $scope.Enterprise.tag_groups
+
+  updateRuleCounts = ->
+    index = 0
+    for tagGroup in $scope.tagGroups
+      tagGroup.startIndex = index
+      index = index + tagGroup.rules.length
+
+  updateRuleCounts()
+
+  $scope.updateTagsRulesFor = (tagGroup) ->
+    for tagRule in tagGroup.rules
+      tagRule.preferred_customer_tags = (tag.text for tag in tagGroup.tags).join(",")
+
+  $scope.addNewRuleTo = (tagGroup) ->
+    tagGroup.rules.push
+      id: null
+      preferred_customer_tags: (tag.text for tag in tagGroup.tags).join(",")
+      type: "TagRule::DiscountOrder"
+      calculator:
+        preferred_flat_percent: 0
+    updateRuleCounts()
+
+  $scope.addNewTag = ->
+    $scope.tagGroups.push { tags: [], rules: [] }
diff --git a/app/assets/javascripts/admin/enterprises/enterprises.js.coffee b/app/assets/javascripts/admin/enterprises/enterprises.js.coffee
index 6be7e00ffa..4537620512 100644
--- a/app/assets/javascripts/admin/enterprises/enterprises.js.coffee
+++ b/app/assets/javascripts/admin/enterprises/enterprises.js.coffee
@@ -1 +1 @@
-angular.module("admin.enterprises", [
  "admin.payment_methods",
  "admin.utils",
  "admin.shipping_methods",
  "admin.users",
  "textAngular",
  "admin.side_menu",
  "admin.taxons",
  'admin.indexUtils',
  'admin.dropdown',
  'pasvaz.bindonce',
  'ngSanitize']
)
\ No newline at end of file
+angular.module("admin.enterprises", [
  "admin.payment_methods",
  "admin.utils",
  "admin.shipping_methods",
  "admin.users",
  "textAngular",
  "admin.side_menu",
  "admin.taxons",
  'admin.indexUtils',
  'admin.dropdown',
  'pasvaz.bindonce',
  'ngSanitize',
  'ngTagsInput']
)
\ No newline at end of file
diff --git a/app/assets/javascripts/templates/admin/tag_rules/discount_order.html.haml b/app/assets/javascripts/templates/admin/tag_rules/discount_order.html.haml
index 19b4af427e..bc2ddc5c75 100644
--- a/app/assets/javascripts/templates/admin/tag_rules/discount_order.html.haml
+++ b/app/assets/javascripts/templates/admin/tag_rules/discount_order.html.haml
@@ -1,26 +1,36 @@
 %div
   %input{ type: "hidden",
-    id: "enterprise_tag_rules_attributes_{{rule.id}}_id",
-    name: "enterprise[tag_rules_attributes][{{rule.id}}][id]",
+    id: "enterprise_tag_rules_attributes_{{tagGroup.startIndex + $index}}_id",
+    name: "enterprise[tag_rules_attributes][{{tagGroup.startIndex + $index}}][id]",
     ng: { value: "rule.id" } }
 
   %input{ type: "hidden",
-    id: "enterprise_tag_rules_attributes_{{rule.id}}_calculator_attributes_id",
-    name: "enterprise[tag_rules_attributes][{{rule.id}}][calculator_attributes][id]",
-    ng: { value: "rule.calculator.id" } }
+    id: "enterprise_tag_rules_attributes_{{tagGroup.startIndex + $index}}_type",
+    name: "enterprise[tag_rules_attributes][{{tagGroup.startIndex + $index}}][type]",
+    value: "TagRule::DiscountOrder" }
 
   %input{ type: "hidden",
-    id: "enterprise_tag_rules_attributes_{{rule.id}}_calculator_attributes_type",
-    name: "enterprise[tag_rules_attributes][{{rule.id}}][calculator_attributes][type]",
-    value: "TagRule::FlatPercentItemTotal" }
+    id: "enterprise_tag_rules_attributes_{{tagGroup.startIndex + $index}}_preferred_customer_tags",
+    name: "enterprise[tag_rules_attributes][{{tagGroup.startIndex + $index}}][preferred_customer_tags]",
+    ng: { value: "rule.preferred_customer_tags" } }
 
-  %span.text-big Apply a discount of
+  %input{ type: "hidden",
+    id: "enterprise_tag_rules_attributes_{{tagGroup.startIndex + $index}}_calculator_type",
+    name: "enterprise[tag_rules_attributes][{{tagGroup.startIndex + $index}}][calculator_type]",
+    value: "Spree::Calculator::FlatPercentItemTotal" }
+
+  %input{ type: "hidden",
+    id: "enterprise_tag_rules_attributes_{{tagGroup.startIndex + $index}}_calculator_attributes_id",
+    name: "enterprise[tag_rules_attributes][{{tagGroup.startIndex + $index}}][calculator_attributes][id]",
+    ng: { value: "rule.calculator.id" } }
+
+  %span.text-normal {{ $index + 1 }}. Apply a discount of
   %span.input-symbol.after
-    %span.text-big %
+    %span.text-normal %
     %input.text-big{ type: "number",
-      id: "enterprise_tag_rules_attributes_{{rule.id}}_calculator_attributes_preferred_flat_percent",
-      name: "enterprise[tag_rules_attributes][{{rule.id}}][calculator_attributes][preferred_flat_percent]",
+      id: "enterprise_tag_rules_attributes_{{tagGroup.startIndex + $index}}_calculator_attributes_preferred_flat_percent",
+      name: "enterprise[tag_rules_attributes][{{tagGroup.startIndex + $index}}][calculator_attributes][preferred_flat_percent]",
       min: 0,
       max: 100,
       ng: { model: "rule.calculator.preferred_flat_percent" } }
-  %span.text-big to order subtotals
+  %span.text-normal to order subtotals
diff --git a/app/assets/stylesheets/admin/offsets.css.scss b/app/assets/stylesheets/admin/offsets.css.scss
index 762b7469f6..190ed49243 100644
--- a/app/assets/stylesheets/admin/offsets.css.scss
+++ b/app/assets/stylesheets/admin/offsets.css.scss
@@ -2,6 +2,10 @@
   margin-bottom: 20px;
 }
 
+.margin-bottom-30 {
+  margin-bottom: 30px;
+}
+
 .margin-bottom-50 {
   margin-bottom: 50px;
 }
diff --git a/app/assets/stylesheets/admin/tag_rules.css.scss b/app/assets/stylesheets/admin/tag_rules.css.scss
index eafc5826f7..cbaed55587 100644
--- a/app/assets/stylesheets/admin/tag_rules.css.scss
+++ b/app/assets/stylesheets/admin/tag_rules.css.scss
@@ -1,5 +1,13 @@
+.no_tags {
+  margin-bottom: 40px;
+  color: #aeaeae;
+  font-size: 1rem;
+  font-weight: bold;
+}
+
 .customer_tag {
   border: 1px solid #cee1f4;
+  margin-bottom: 40px;
 
   .header {
     padding: 8px 10px;
@@ -7,7 +15,21 @@
     border-bottom: 1px solid #cee1f4;
   }
 
+  .no_rules {
+    padding: 8px 10px;
+    margin-bottom: 10px;
+    color: #aeaeae;
+    font-size: 1rem;
+    font-weight: bold;
+  }
+
   .tag_rule {
     padding: 8px 10px;
+    margin-bottom: 10px;
+  }
+
+  .add_rule {
+    padding: 8px 10px;
+    margin-bottom: 10px;
   }
 }
diff --git a/app/controllers/admin/enterprises_controller.rb b/app/controllers/admin/enterprises_controller.rb
index d692984885..377186b604 100644
--- a/app/controllers/admin/enterprises_controller.rb
+++ b/app/controllers/admin/enterprises_controller.rb
@@ -35,6 +35,8 @@ module Admin
 
     def update
       invoke_callbacks(:update, :before)
+      tag_rules_attributes = params[object_name].delete :tag_rules_attributes
+      update_tag_rules(tag_rules_attributes) if tag_rules_attributes.present?
       if @object.update_attributes(params[object_name])
         invoke_callbacks(:update, :after)
         flash[:success] = flash_message_for(@object, :successfully_updated)
@@ -180,6 +182,27 @@ module Admin
       @taxons = Spree::Taxon.order(:name)
     end
 
+    def update_tag_rules(tag_rules_attributes)
+      # Due to the combination of trying to use nested attributes and type inheritance
+      # we cannot apply all attributes to tag rules in one hit because mass assignment
+      # methods that are specific to each class do not become available until after the
+      # record is persisted. This problem is compounded by the use of calculators.
+      @object.transaction do
+        tag_rules_attributes.select{ |i, attrs| attrs[:type].present? }.each do |i, attrs|
+          rule = @object.tag_rules.find_by_id(attrs.delete :id) || attrs[:type].constantize.new(enterprise:  @object)
+          create_calculator_for(rule, attrs) if rule.type == "TagRule::DiscountOrder" && rule.calculator.nil?
+          rule.update_attributes(attrs)
+        end
+      end
+    end
+
+    def create_calculator_for(rule, attrs)
+      if attrs[:calculator_type].present? && attrs[:calculator_attributes].present?
+        rule.update_attributes(calculator_type: attrs[:calculator_type])
+        attrs[:calculator_attributes].merge!( { id: rule.calculator.id } )
+      end
+    end
+
     def check_can_change_bulk_sells
       unless spree_current_user.admin?
         params[:enterprise_set][:collection_attributes].each do |i, enterprise_params|
diff --git a/app/models/enterprise.rb b/app/models/enterprise.rb
index 62462ac425..dfc5050a38 100644
--- a/app/models/enterprise.rb
+++ b/app/models/enterprise.rb
@@ -48,7 +48,7 @@ class Enterprise < ActiveRecord::Base
 
   accepts_nested_attributes_for :address
   accepts_nested_attributes_for :producer_properties, allow_destroy: true, reject_if: lambda { |pp| pp[:property_name].blank? }
-  accepts_nested_attributes_for :tag_rules, allow_destroy: true
+  accepts_nested_attributes_for :tag_rules, allow_destroy: true, reject_if: lambda { |tag_rule| tag_rule[:preferred_customer_tags].blank? }
 
   has_attached_file :logo,
     styles: { medium: "300x300>", small: "180x180>", thumb: "100x100>" },
diff --git a/app/models/tag_rule.rb b/app/models/tag_rule.rb
index 1a3986e2ea..cf0a105e80 100644
--- a/app/models/tag_rule.rb
+++ b/app/models/tag_rule.rb
@@ -7,6 +7,8 @@ class TagRule < ActiveRecord::Base
 
   validates :enterprise, presence: true
 
+  attr_accessible :enterprise, :enterprise_id, :preferred_customer_tags
+
   def set_context(subject, context)
     @subject = subject
     @context = context
diff --git a/app/serializers/api/admin/enterprise_serializer.rb b/app/serializers/api/admin/enterprise_serializer.rb
index 1d9c37595d..8f70da1a0d 100644
--- a/app/serializers/api/admin/enterprise_serializer.rb
+++ b/app/serializers/api/admin/enterprise_serializer.rb
@@ -3,9 +3,25 @@ class Api::Admin::EnterpriseSerializer < ActiveModel::Serializer
   attributes :producer_profile_only, :email, :long_description, :permalink
   attributes :preferred_shopfront_message, :preferred_shopfront_closed_message, :preferred_shopfront_taxon_order, :preferred_shopfront_order_cycle_order
   attributes :preferred_product_selection_from_inventory_only
-  attributes :owner, :users
+  attributes :owner, :users, :tag_groups
 
   has_one :owner, serializer: Api::Admin::UserSerializer
   has_many :users, serializer: Api::Admin::UserSerializer
-  has_many :tag_rules, serializer: Api::Admin::TagRuleSerializer
+
+  def tag_groups
+    tag_groups = []
+    object.tag_rules.each do |tag_rule|
+      tag_group = find_match(tag_groups, tag_rule.preferred_customer_tags.split(",").map{ |t| { text: t } })
+      tag_groups << tag_group if tag_group[:rules].empty?
+      tag_group[:rules] << Api::Admin::TagRuleSerializer.new(tag_rule).serializable_hash
+    end
+    tag_groups
+  end
+
+  def find_match(tag_groups, tags)
+    tag_groups.each do |tag_group|
+      return tag_group if tag_group[:tags].length == tags.length && (tag_group[:tags] & tags) == tag_group[:tags]
+    end
+    return { tags: tags, rules: [] }
+  end
 end
diff --git a/app/views/admin/enterprises/_form.html.haml b/app/views/admin/enterprises/_form.html.haml
index d602f7418d..e363078733 100644
--- a/app/views/admin/enterprises/_form.html.haml
+++ b/app/views/admin/enterprises/_form.html.haml
@@ -55,6 +55,6 @@
   %legend Shop Preferences
   = render 'admin/enterprises/form/shop_preferences', f: f
 
-%fieldset.alpha.no-border-bottom{ ng: { show: "menu.selected.name=='Tag Rules'" } }
+%fieldset.alpha.no-border-bottom{ ng: { if: "menu.selected.name=='Tag Rules'" } }
   %legend Tag Rules
   = render 'admin/enterprises/form/tag_rules', f: f
diff --git a/app/views/admin/enterprises/edit.html.haml b/app/views/admin/enterprises/edit.html.haml
index 19ae0f3b44..5d3a623f40 100644
--- a/app/views/admin/enterprises/edit.html.haml
+++ b/app/views/admin/enterprises/edit.html.haml
@@ -7,6 +7,7 @@
 - content_for :page_actions do
   %li= button_link_to "Back to enterprises list", main_app.admin_enterprises_path, icon: 'icon-arrow-left'
 
+
 = render 'admin/enterprises/form_data'
 
 = render 'admin/enterprises/ng_form', action: 'edit'
diff --git a/app/views/admin/enterprises/form/_tag_rules.html.haml b/app/views/admin/enterprises/form/_tag_rules.html.haml
index 44b1148058..ecb8b54f2e 100644
--- a/app/views/admin/enterprises/form/_tag_rules.html.haml
+++ b/app/views/admin/enterprises/form/_tag_rules.html.haml
@@ -1,10 +1,21 @@
 .row{ ng: { controller: "TagRulesCtrl" } }
   .eleven.columns.alpha.omega
     .eleven.columns.alpha.omega
-      .customer_tag{ ng: { repeat: "(tags, rules) in groupedTagRules" }, bindonce: true }
+      .no_tags{ ng: { show: "tagGroups.length == 0" } }
+        No tags apply to this enterprise yet
+      .customer_tag{ ng: { repeat: "tagGroup in tagGroups" }, bindonce: true }
         .header
           %h3
-            For customers tagged
-            %span.text-red &#35;{{ tags.split(",").join(", #") }}
-        .tag_rule{ ng: { repeat: "rule in rules" } }
+            For customers tagged:
+          %tags-input{ ng: { model: 'tagGroup.tags'},
+            min: { tags: "1" },
+            on: { tag: { added: "updateTagsRulesFor(tagGroup)", removed: "updateTagsRulesFor(tagGroup)" } } }
+
+        .no_rules{ ng: { show: "tagGroup.rules.length == 0" } }
+          No rules apply to this tag yet
+        .tag_rule{ ng: { repeat: "rule in tagGroup.rules" } }
           %discount-order{ bo: { if: "rule.type == 'TagRule::DiscountOrder'" } }
+        .add_rule
+          %input.button.icon-plus{ type: 'button', value: "+ Add A New Rule", ng: { click: 'addNewRuleTo(tagGroup)' } }
+      .add_tag
+        %input.button.icon-plus{ type: 'button', value: "+ Add A New Tag", ng: { click: 'addNewTag()' } }
diff --git a/spec/controllers/admin/enterprises_controller_spec.rb b/spec/controllers/admin/enterprises_controller_spec.rb
index 8b972a3321..05498010bb 100644
--- a/spec/controllers/admin/enterprises_controller_spec.rb
+++ b/spec/controllers/admin/enterprises_controller_spec.rb
@@ -181,6 +181,58 @@ module Admin
             end
           end
         end
+
+        describe "tag rules" do
+          let(:enterprise) { create(:distributor_enterprise) }
+          let!(:tag_rule) { create(:tag_rule, enterprise: enterprise) }
+
+          before do
+            login_as_enterprise_user [enterprise]
+          end
+
+          context "discount order rules" do
+            it "updates the existing rule with new attributes" do
+              spree_put :update, {
+                id: enterprise,
+                enterprise: {
+                  tag_rules_attributes: {
+                    '0' => {
+                      id: tag_rule,
+                      type: "TagRule::DiscountOrder",
+                      preferred_customer_tags: "some,new,tags",
+                      calculator_type: "Spree::Calculator::FlatPercentItemTotal",
+                      calculator_attributes: { id: tag_rule.calculator.id, preferred_flat_percent: "15" }
+                    }
+                  }
+                }
+              }
+              tag_rule.reload
+              expect(tag_rule.preferred_customer_tags).to eq "some,new,tags"
+              expect(tag_rule.calculator.preferred_flat_percent).to eq 15
+            end
+
+            it "creates new rules with new attributes" do
+              spree_put :update, {
+                id: enterprise,
+                enterprise: {
+                  tag_rules_attributes: {
+                    '0' => {
+                      id: "",
+                      type: "TagRule::DiscountOrder",
+                      preferred_customer_tags: "tags,are,awesome",
+                      calculator_type: "Spree::Calculator::FlatPercentItemTotal",
+                      calculator_attributes: { id: "", preferred_flat_percent: "24" }
+                    }
+                  }
+                }
+              }
+              expect(tag_rule.reload).to be
+              new_tag_rule = TagRule::DiscountOrder.last
+              expect(new_tag_rule.preferred_customer_tags).to eq "tags,are,awesome"
+              expect(new_tag_rule.calculator.preferred_flat_percent).to eq 24
+            end
+          end
+        end
       end
 
       context "as owner" do
diff --git a/spec/features/admin/enterprises_spec.rb b/spec/features/admin/enterprises_spec.rb
index 3e9008968b..2b77d6e18b 100644
--- a/spec/features/admin/enterprises_spec.rb
+++ b/spec/features/admin/enterprises_spec.rb
@@ -285,6 +285,32 @@ feature %q{
   describe "tag rules", js: true do
     let!(:enterprise) { create(:distributor_enterprise) }
 
+    context "creating" do
+      before do
+        login_to_admin_section
+        visit main_app.edit_admin_enterprise_path(enterprise)
+      end
+
+      it "creates a new rule" do
+        click_link "Tag Rules"
+
+        expect(page).to_not have_selector '.customer_tag'
+        expect(page).to have_content 'No tags apply to this enterprise yet'
+        click_button '+ Add A New Tag'
+        find(:css, "tags-input .tags input").set "volunteer\n"
+
+        expect(page).to have_content 'No rules apply to this tag yet'
+        click_button '+ Add A New Rule'
+        fill_in "enterprise[tag_rules_attributes][0][calculator_attributes][preferred_flat_percent]", with: 22
+
+        click_button 'Update'
+
+        tag_rule = TagRule::DiscountOrder.last
+        expect(tag_rule.preferred_customer_tags).to eq "volunteer"
+        expect(tag_rule.calculator.preferred_flat_percent).to eq 22
+      end
+    end
+
     context "updating" do
       let!(:tag_rule) { create(:tag_rule, enterprise: enterprise, preferred_customer_tags: "member" ) }
 
@@ -296,12 +322,15 @@ feature %q{
       it "saves changes to the rule" do
         click_link "Tag Rules"
 
-        expect(first('.customer_tag .header')).to have_content "For customers tagged #member"
-        expect(page).to have_input "enterprise[tag_rules_attributes][#{tag_rule.id}][calculator_attributes][preferred_flat_percent]", with: "0"
-        fill_in "enterprise[tag_rules_attributes][#{tag_rule.id}][calculator_attributes][preferred_flat_percent]", with: 45
+        expect(first('.customer_tag .header')).to have_content "For customers tagged:"
+        expect(first('tags-input .tag-list ti-tag-item')).to have_content "member"
+        find(:css, "tags-input .tags input").set "volunteer\n"
+        expect(page).to have_input "enterprise[tag_rules_attributes][0][calculator_attributes][preferred_flat_percent]", with: "0"
+        fill_in "enterprise[tag_rules_attributes][0][calculator_attributes][preferred_flat_percent]", with: 45
 
         click_button 'Update'
 
+        expect(tag_rule.preferred_customer_tags).to eq "member,volunteer"
         expect(tag_rule.calculator.preferred_flat_percent).to eq 45
       end
     end
diff --git a/spec/javascripts/unit/admin/enterprises/controllers/tag_rules_controller_spec.js.coffee b/spec/javascripts/unit/admin/enterprises/controllers/tag_rules_controller_spec.js.coffee
index 1b4ca0f34e..dd2fcee449 100644
--- a/spec/javascripts/unit/admin/enterprises/controllers/tag_rules_controller_spec.js.coffee
+++ b/spec/javascripts/unit/admin/enterprises/controllers/tag_rules_controller_spec.js.coffee
@@ -6,10 +6,9 @@ describe "TagRulesCtrl", ->
   beforeEach ->
     module('admin.enterprises')
     enterprise =
-      tag_rules: [
-        { id: 1, preferred_customer_tags: "member" },
-        { id: 2, preferred_customer_tags: "member" },
-        { id: 3, preferred_customer_tags: "local" }
+      tag_groups: [
+        { tags: "member", rules: [{ id: 1, preferred_customer_tags: "member" }, { id: 2, preferred_customer_tags: "member" }] },
+        { tags: "volunteer", rules: [{ id: 3, preferred_customer_tags: "local" }] }
       ]
 
     inject ($rootScope, $controller) ->
@@ -17,9 +16,12 @@ describe "TagRulesCtrl", ->
       scope.Enterprise = enterprise
       ctrl = $controller 'TagRulesCtrl', {$scope: scope}
 
-  describe "initialization", ->
-    it "groups rules by preferred_customer_tags", ->
-      expect(scope.groupedTagRules).toEqual {
-        member: [{ id: 1, preferred_customer_tags: "member" }, { id: 2, preferred_customer_tags: "member" }],
-        local: [{ id: 3, preferred_customer_tags: "local" }]
-      }
+  describe "tagGroup start indices", ->
+    it "updates on initialization", ->
+      expect(scope.tagGroups[0].startIndex).toEqual 0
+      expect(scope.tagGroups[1].startIndex).toEqual 2
+
+    it "updates when tags are added to a tagGroup", ->
+      scope.addNewRuleTo(scope.tagGroups[0])
+      expect(scope.tagGroups[0].startIndex).toEqual 0
+      expect(scope.tagGroups[1].startIndex).toEqual 3