diff --git a/app/models/chargeback/consumption_with_rollups.rb b/app/models/chargeback/consumption_with_rollups.rb
index 5a96dd35809..1aba22c7c84 100644
--- a/app/models/chargeback/consumption_with_rollups.rb
+++ b/app/models/chargeback/consumption_with_rollups.rb
@@ -22,7 +22,7 @@ def hash_features_affecting_rate
 
     def tag_names
       @tag_names ||= @rollups.inject([]) do |memo, rollup|
-        memo |= rollup.tag_names.split('|') if rollup.tag_names.present?
+        memo |= rollup.all_tag_names
         memo
       end
     end
diff --git a/app/models/chargeback_vm.rb b/app/models/chargeback_vm.rb
index 149a6d0fa68..6fb57c58484 100644
--- a/app/models/chargeback_vm.rb
+++ b/app/models/chargeback_vm.rb
@@ -83,7 +83,8 @@ def self.build_results_for_report_ChargebackVm(options)
   def self.where_clause(records, options, region)
     scope = records.where(:resource_type => "VmOrTemplate")
     if options[:tag] && (@report_user.nil? || !@report_user.self_service?)
-      scope.for_tag_names(options[:tag].split("/")[2..-1])
+      scope_with_current_tags = scope.where(:resource => Vm.find_tagged_with(:any => @options[:tag], :ns => '*'))
+      scope.for_tag_names(options[:tag].split("/")[2..-1]).or(scope_with_current_tags)
     else
       scope.where(:resource => vms(region))
     end
diff --git a/app/models/metric/chargeback_helper.rb b/app/models/metric/chargeback_helper.rb
index 1af763b7324..916bb736789 100644
--- a/app/models/metric/chargeback_helper.rb
+++ b/app/models/metric/chargeback_helper.rb
@@ -26,7 +26,7 @@ def tag_list_with_prefix
       end
     end
 
-    "#{image_tag_name}#{tag_names}".split("|").reject(&:empty?).map { |x| "#{tag_prefix}#{x}" } + (labels || [])
+    "#{image_tag_name}#{all_tag_names.join("|")}".split("|").reject(&:empty?).map { |x| "#{tag_prefix}#{x}" } + (labels || [])
   end
 
   def resource_parents
@@ -47,4 +47,16 @@ def parents_determining_rate
       [parent_ems].compact
     end
   end
+
+  def resource_current_tag_names
+    resource ? resource.tags.collect(&:name).map { |x| x.gsub("/managed/", "") } : []
+  end
+
+  def resource_tag_names
+    tag_names ? tag_names.split("|") : []
+  end
+
+  def all_tag_names
+    resource_current_tag_names | resource_tag_names
+  end
 end
diff --git a/spec/models/chargeback_vm_spec.rb b/spec/models/chargeback_vm_spec.rb
index bb4a46b4412..dde47f902f5 100644
--- a/spec/models/chargeback_vm_spec.rb
+++ b/spec/models/chargeback_vm_spec.rb
@@ -627,6 +627,21 @@ def result_row_for_vm(vm)
 
         subject { ChargebackVm.build_results_for_report_ChargebackVm(options).first.first }
 
+        context "when MetricRollup#tag_names are not considered" do
+          before do
+            # report filter is set to different tag
+            @vm1.metric_rollups.each { |mr| mr.update(:tag_names => 'registered/no|folder_path_yellow/datacenters') }
+          end
+
+          it "cpu" do
+            expect(subject.cpu_allocated_metric).to eq(cpu_count)
+            used_metric = used_average_for(:cpu_usagemhz_rate_average, hours_in_month, @vm1)
+            expect(subject.cpu_used_metric).to be_within(0.01).of(used_metric)
+            expect(subject.cpu_used_cost).to be_within(0.01).of(used_metric * hourly_rate * hours_in_month)
+            expect(subject.cpu_allocated_cost).to be_within(0.01).of(cpu_count * count_hourly_rate * hours_in_month)
+          end
+        end
+
         context "chargeback rate contains rate unrelated to chargeback vm" do
           let!(:chargeback_rate) do
             FactoryGirl.create(:chargeback_rate, :detail_params => detail_params.merge(:chargeback_rate_detail_cpu_cores_allocated => {:tiers => [count_hourly_variable_tier_rate]}))
@@ -905,19 +920,24 @@ def result_row_for_vm(vm)
           FactoryGirl.create(:metric_rollup_vm_hr, :timestamp => report_run_time - 1.day - 17.hours,
                              :parent_host_id => @host1.id, :parent_ems_cluster_id => @ems_cluster.id,
                              :parent_ems_id => ems.id, :parent_storage_id => @storage.id,
-                             :resource => @vm1)
+                             :resource => @vm)
         end
         let(:consumption) { Chargeback::ConsumptionWithRollups.new([metric_rollup], nil, nil) }
 
         before do
           @storage.tag_with([classification_1.tag.name, classification_2.tag.name], :ns => '*')
           ChargebackRate.set_assignments(:storage, [rate_assignment_options_1, rate_assignment_options_2])
+          @vm = FactoryGirl.create(:vm_vmware, :name => "test_vm_1", :evm_owner => admin, :ems_ref => "ems_ref", :created_on => month_beginning)
         end
 
         it "return only one chargeback rate according to tag name of Vm" do
+          skip('this feature needs to be added to new chargeback') if Settings.new_chargeback
+
           [rate_assignment_options_1, rate_assignment_options_2].each do |rate_assignment|
             metric_rollup.tag_names = rate_assignment[:tag].first.tag.send(:name_path)
-            uniq_rates = chargeback_vm.get(consumption)
+            @vm.tag_with(["/managed/#{metric_rollup.tag_names}"], :ns => '*')
+            @vm.reload
+            uniq_rates = Chargeback::RatesCache.new.get(consumption)
             consumption.instance_variable_set(:@tag_names, nil)
             consumption.instance_variable_set(:@hash_features_affecting_rate, nil)
             expect([rate_assignment[:cb_rate]]).to match_array(uniq_rates)