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UPDATED: April 20, 2022, at 12:27 p.m.

M

ike Dahl celebrated 4/20 for the first time in 1991.

Thirty one years later, Dahl and all New Yorkers over 21 that use marijuana will be able to legally celebrate the cannabis-centered holiday for the second year. Though the state legalized cannabis shortly before April 20 last year, COVID-19 restrictions and unclear regulations during last year’s celebration makes this year a pivotal landmark for the cannabis industry, Dahl said.

“(4/20) was always a big thing even when (marijuana) was illegal,” said Dahl, owner of Flower City Home Grown Consulting. “It’s definitely a big day for the industry all across the board.”

Dahl, various cannabis entrepreneurs, Syracuse University students and other experts told The Daily Orange they hope this year’s 4/20 celebrations are just one step toward growth in the industry and de-stigmatization of cannabis use both in New York state and across the U.S.

Although many state governments, including New York’s, made plans to bring legal cannabis to market quickly, the process often takes longer than expected, said Sumer Thomas, director of regulatory operations at Canna Advisors. New York is rolling out its regulations at a normal pace, she added, but in doing so, the state is able to create an even stronger program.

“New York is being vanguard with the program,” she said. “They are not just going about it the way we’ve seen other states try and fail with licensing, specifically social equity licensing. They have a really good thing going here.”

Federal tax policies only allow cannabis entrepreneurs to deduct cost of goods sold as an expense, and they cannot claim overhead costs such as rent or utilities, making their gross profit seem higher. But New York opted out from this policy at the state level, providing some tax relief to cannabis entrepreneurs, said Nick Agrippino, tax manager at Bowers & Company and head of the firm’s cannabis and hemp consulting group practice.

On April 9, the state approved Gov. Kathy Hochul’s 2023 budget, which included an exemption to this rule, allowing cannabis entrepreneurs to deduct some overhead costs from gross income, rather than only deducting the cost of the product they sold, Agrippino said.

“Generally their cost of goods sold is what they buy their product for,” he said. “But they have all these overhead expenses like utilities, rent, budtenders.”

Cannabis entrepreneurs in New York will be able to save on their state tax return, though they will still have to file the federal return without deducting the overhead costs, Agrippino said. Other states have been slower to adopt similar policies, he said.

While policy changes are important, changing the negative stigma surrounding marijuana use is essential, and will take time, Dahl and Agrippino said. Marijuana is still a schedule one drug at the federal level — it is seen as a dangerous drug with no medical use.

“We grew up in the war on drugs. (Marijuana) has a very bad stigma, and I’m trying to break that stigma,” Dahl said.

Charles Messina, a partner at Genova Burns LLC and co-chair of the firm’s cannabis practice group, noted that the stigma stems from marijuana’s deep-rooted history and could take years to undo. Many states originally criminalized cannabis in the early 20th century to prevent Mexican immigration following the Mexican Revolution.

SU students agreed with experts that there is more work to be done to remove negative stigma.

“It’s legal, it’s not like I’m doing heroin in the park,” said Payne Edelman, an SU sophomore studying policy studies. “I just want to see dispensaries, see (marijuana) sold and consumed, and treated like it would be alcohol, which practically every adult uses in their life.”

SU senior Zach Kalt said that while there still is a stigma surrounding marijuana usage, he expects some adults to also become more open about their personal experience with cannabis going forward, especially because its use is often looked down upon post-college.

“People drink alcohol ‘cause they want to get drunk. People smoke weed ‘cause they want to get high,” Kalt said. “People that were once secretive about it, shy about it, they’ll start to be more open about it.”

Jennifer Roselle, another partner at Genova Burns LLC and co-chair of the firm’s cannabis practice group, said alcohol and marijuana consumption are legally the same in New York state.

Aggripino said that once recreational sales start and people see that their day to day lives are unaffected, the stigma could start to fade, though it may never go away completely.

“The stigma (is) always going to be there in some form or another,” he said. “It’s kind of the unfortunate truth.”

But for Mike Golden and Byron Cage, co-founders of The Higher Calling, destigmatizing marijuana use is critical, and the two hope to use their brand to help stop the stigma and diversify the cannabis industry.

“Hopefully it’ll begin to get a little more normalized, that’s what we’ve been trying to do as a brand and organization,” Golden said. “Right now our mission is to break some of the drug, race and neighborhood stigmas around cannabis and cannabis users.”

Golden and Cage’s brand currently focuses on encouraging people who may have previous experiences in the industry’s illicit market to pursue careers within the legal realm and develop “generational wealth” for their families. The duo also sells clothing items and has already begun plans to expand their businesses into a small-plate infused THC cafe, which will open once licenses become available.

Messina said that the state is attempting to be equitable and prioritize welfare throughout the legalization process.

“They’re trying to do it the right way and be socially conscious about it,” he said. “We want to try to right the wrongs of the War on Drugs and how much it bludgeoned our communities of color.”

When recreational cannabis sales begin, Kalt said he will feel safer knowing that the product has been tested and approved for sale, given the protocols in place. While “weed trucks” roam around New York City selling actual marijuana flower to consumers, they may not know where the product is coming from and if it’s safe since the state hasn’t administered recreational licenses yet, he said.

“You just have no idea how these companies got it, where they got it, if it’s legal for you to buy it,” he said.

Roselle said that safety regulations are one of the biggest concerns for consumers and distributors as the market prepares to launch.

Still, entrepreneurs and students are eager to celebrate 4/20.

Golden and Cage are planning a 4/20 concert at the Westcott Theater featuring five sets of performers. They expect the event to be one of many celebrations of cannabis culture across the city.

Kalt and Edelman said that they expect to see people out and about celebrating 4/20, especially given the cannabis culture associated with college campuses. COVID-19 curbed some celebrations last year, and Edelman hopes to spend time with friends outside during the day, he said.

New York state laws are unique in that they allow for cannabis consumption anywhere tobacco is permitted, which could encourage more widespread 4/20 celebrations, Thomas said.

“People are going to be smoking on the streets with no repercussions,” she said.

Hillary Peckham, chief operating officer of Etain Health, said 4/20 is an opportunity to celebrate the industry and cannabis culture.

“4/20 provides a wonderful opportunity to celebrate how far the cannabis industry in New York has come and continue to educate the public on how the plant can be used,” she said in a statement to The D.O.

Beyond just 4/20 celebrations, experts and entrepreneurs said that New York state has the potential to be a leader in the cannabis industry going forward.

Dahl said the amount of money circulating in the state gives it the opportunity to be successful. Messina and Roselle said that New York City’s cultural influence could turn it into the epicenter for the cannabis industry. New York has seen what other states have done to roll out the legal market and can adapt its processes accordingly, Cage said.

“As New Yorkers, we want to be the best at everything we do,” Cage said. “We’ll be able to develop a really strong system to be at the forefront of this industry.”

Messina and Roselle said that there is a certain pressure for New York to get started because of its bordering states — New Jersey legalized marijuana in February 2021, while Connecticut legalized it in June 2021, shortly after New York state.

Agrippino said that while the primary market will be in New York City, central New York has the opportunity to use its agricultural skill to help with cultivation and processing, and dispensaries will have opportunities as well.

“How we fit into that niche field is that upstate can handle the cultivation and processing end of it and then has the opportunity to meet that demand downstate as well,” he said.

Still, to Thomas, New York City will be a leader in destigmatizing marijuana use nationwide and worldwide as the industry continues to grow.

“When you see folks in suits and ties working on Wall Street smoking up a doobie, it’s going to relieve some of that stigma from the rest of the country,” Thomas said.

Banner Illustration by Maya Goosmann, Digital Design Director

CORRECTION: A previous version of this post misstated the date in which marijuana was legalized in New Jersey. It was legalized in February 2021. The Daily Orange regrets this error.