diff --git a/hggit/git_handler.py b/hggit/git_handler.py
index f4155ea921..ed41a9149f 100644
--- a/hggit/git_handler.py
+++ b/hggit/git_handler.py
@@ -710,24 +710,24 @@ class GitHandler(object):
                          ' bookmarks enabled?\n'))
 
     def update_remote_branches(self, remote_name, refs):
-        heads = dict([(ref[11:],refs[ref]) for ref in refs
-                      if ref.startswith('refs/heads/')])
-
-        for head, sha in heads.iteritems():
+        def _set_hg_tag(head, sha):
             # refs contains all the refs in the server, not just the ones
             # we are pulling
             if sha not in self.git.object_store:
-                continue
+                return
             hgsha = bin(self.map_hg_get(sha))
             tag = '%s/%s' % (remote_name, head)
             self.repo.tag(tag, hgsha, '', True, None, None)
 
-        for ref_name in refs:
+        for ref_name, sha in refs.iteritems():
             if ref_name.startswith('refs/heads'):
-                new_ref = 'refs/remotes/%s/%s' % (remote_name, ref_name[11:])
-                self.git.refs[new_ref] = refs[ref_name]
+                head = ref_name[11:]
+                _set_hg_tag(head, sha)
+
+                new_ref = 'refs/remotes/%s/%s' % (remote_name, head)
+                self.git.refs[new_ref] = sha
             elif ref_name.startswith('refs/tags'):
-                self.git.refs[ref_name] = refs[ref_name]
+                self.git.refs[ref_name] = sha
 
 
     ## UTILITY FUNCTIONS
diff --git a/tests/test-hg-author.out b/tests/test-hg-author.out
index dc68089f93..518c824cdf 100644
--- a/tests/test-hg-author.out
+++ b/tests/test-hg-author.out
@@ -19,8 +19,8 @@ creating and sending data
     default::refs/heads/master => GIT:2b9ec6a4
 @  changeset:   2:92d33c0dd6e1
 |  tag:         master
-|  tag:         default/master
 |  tag:         tip
+|  tag:         default/master
 |  user:        test <test@example.com> (comment)
 |  date:        Mon Jan 01 00:00:12 2007 +0000
 |  summary:     modify beta
@@ -45,8 +45,8 @@ importing Git objects into Hg
 2 files updated, 0 files merged, 0 files removed, 0 files unresolved
 @  changeset:   2:92d33c0dd6e1
 |  tag:         master
-|  tag:         default/master
 |  tag:         tip
+|  tag:         default/master
 |  user:        test <test@example.com> (comment)
 |  date:        Mon Jan 01 00:00:12 2007 +0000
 |  summary:     modify beta
diff --git a/tests/test-hg-branch.out b/tests/test-hg-branch.out
index a64562c733..6a1e4ed182 100644
--- a/tests/test-hg-branch.out
+++ b/tests/test-hg-branch.out
@@ -21,8 +21,8 @@ creating and sending data
 @  changeset:   2:d93a72262a83
 |  branch:      gamma
 |  tag:         master
-|  tag:         default/master
 |  tag:         tip
+|  tag:         default/master
 |  user:        test
 |  date:        Mon Jan 01 00:00:12 2007 +0000
 |  summary:     started branch gamma
@@ -48,8 +48,8 @@ importing Git objects into Hg
 o  changeset:   2:d93a72262a83
 |  branch:      gamma
 |  tag:         master
-|  tag:         default/master
 |  tag:         tip
+|  tag:         default/master
 |  user:        test
 |  date:        Mon Jan 01 00:00:12 2007 +0000
 |  summary:     started branch gamma
diff --git a/tests/test-hg-tags.out b/tests/test-hg-tags.out
index 8ca59c6798..6963da297e 100644
--- a/tests/test-hg-tags.out
+++ b/tests/test-hg-tags.out
@@ -15,8 +15,8 @@ creating and sending data
     default::refs/heads/master => GIT:9a2616b9
 @  changeset:   1:d529e9229f6d
 |  tag:         master
-|  tag:         default/master
 |  tag:         tip
+|  tag:         default/master
 |  user:        test
 |  date:        Mon Jan 01 00:00:11 2007 +0000
 |  summary:     Added tag alpha for changeset 3442585be8a6
@@ -39,8 +39,8 @@ importing Git objects into Hg
 2 files updated, 0 files merged, 0 files removed, 0 files unresolved
 @  changeset:   1:d529e9229f6d
 |  tag:         master
-|  tag:         default/master
 |  tag:         tip
+|  tag:         default/master
 |  user:        test
 |  date:        Mon Jan 01 00:00:11 2007 +0000
 |  summary:     Added tag alpha for changeset 3442585be8a6