Town's title tilt is over
Needing a victory to take the issue to the last game, Town were all out for 156, with only Gareth Purshouse (35) able to achieve a reasonable score.
In reply York made 157-4 to ensure they retained their title.
Despite the defeat, Town are guaranteed to finish second as they are out of the reach of third-placed Cleethorpes.
Scarborough are the visitors to Clifton Lane on Saturday.