You can sell used tires as long as they are sold as used and meet the standards for safe operating conditions. There is a law in front of the state assembly now that reads:
"AB 9683, a tire repair would be considered improper if the repaired tire had a tread depth is 2/32-inch or less on any area of the tread; or if there is damage is to a tire sidewall; or the injury extends into the tread shoulder/belt edge area or exceeds ΒΌ-inch; or if the tire has an existing improper repair; or if attempting to repair the tire would result in an overlap on an existing proper repair."
http://www.tirereview.com/Article/98685/new_york_state_considers_tire_repair_law.aspx