diff --git a/vmware_nsxlib/v3/utils.py b/vmware_nsxlib/v3/utils.py
index e5e2dec0..3c71755b 100644
--- a/vmware_nsxlib/v3/utils.py
+++ b/vmware_nsxlib/v3/utils.py
@@ -48,9 +48,13 @@ def update_v3_tags(current_tags, tags_update):
     current_scopes = set([tag['scope'] for tag in current_tags])
     updated_scopes = set([tag['scope'] for tag in tags_update])
 
+    # All tags scopes which are either completley new or arleady defined on the
+    # resource are left in place, unless the tag value is empty, in that case
+    # it is ignored.
     tags = [{'scope': tag['scope'], 'tag': tag['tag']}
             for tag in (current_tags + tags_update)
-            if tag['scope'] in (current_scopes ^ updated_scopes)]
+            if tag['tag'] and
+            tag['scope'] in (current_scopes ^ updated_scopes)]
 
     modified_scopes = current_scopes & updated_scopes
     for tag in tags_update: