The government of Taiwan enacted a 50% tax cut on the Land Value Increment Tax in order to stimulate construction industry during the period from February 2002 to January 2005. This study examines the effect on land transactions times of the Land Value Increment Tax-Cut policy and explores the relation between the gain on sale of land of the tax policy and firm characteristics. Empirical results show that the land transactions times were increased during the period of the Land Value Increment Tax-Cut. The tax-cut policy was regarded as an effective measure to stimulate the local real estate market and inspire the economy prosperity. Moreover, companies with greater land-to-asset ratios and debt-to-asset ratios tended to have greater gain on sale of land. The findings of this study provide empirical evidence on the land transaction impacts of the tax cut policy.