The land value increment tax in Taiwan is not an ordinary tax but a tax with the specific purpose of meeting specific needs. It was designed to impose a heavy tax burden on the value of land, for the purpose of sharing profits with the general public. The justification for this is that the increased value of land is attributable to surrounding social factors, rather than the result of labor or capital investment. The land value increment tax is to be collected at a favorable rate, where ever the sale of owner-occupied residential land (by the title owner) satisfies the provisions of the Land Tax Act. In addition, if the title owner reacquires owner-occupied residential land within two years, the owner may apply to the taxing authority for a refund of a portion of the tax already paid (if that owner satisfies the provisions of the Act.) This study discusses the fairness and adequacy of the coexistence of the two tax preferences, and provides some opinions for amendment.