For the 2007 tax year (filings for which are due Tuesday, April 15), the Legislature established a "dual tax system" with two methods for calculating tax rates.

The first is the traditional, graduated-rate method that allows personal exemptions and itemized or standard deductions that taxpayers have become familiar with. This option ensures that no taxpayer will pay more tax for 2007 than he or she would have paid in the absence of tax reform.

The second method is a new "flat tax" option, which is unique to the 2007 tax year. That option has a lower rate, but does not allow deductions. Taxpayers are instructed to calculate their taxes under both systems, but to pay the lower of the two amounts. For most taxpayers, that lower amount will be the traditional, multirate method.

For the 2008 tax year, this dual rate income tax system will go away. Instead of having two rates for calculation, taxpayers with have a uniform system with a single tax rate. This new system for tax year 2008 will allow most taxpayers to claim credits that are not allowable on the 2007 "flat tax" option. In fact, the 2008 "single rate" system allows credits for most of the personal exemptions and itemized deductions that have traditionally been allowed.

Although these credits phase out at higher income levels, most taxpayers will still benefit from them to some extent. Accordingly, the 2007 "flat tax" is not a good indicator of what most taxpayers' liabilities will be in 2008. It will significantly overstate those liabilities.

We urge concerned taxpayers to visit our Web site at http://tax.utah.gov for more information. Taxpayers who wish to estimate their 2008 liability should visit Gov. Jon Huntsman's Web site, www.utah.gov/governor, where an interactive tax calculator is available.

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* PAM HENDRICKSON is a commissioner and chair of the Utah State Tax Commission.