Area commander Inspector Pat Handcock said today he had made the decision not to prosecute Taane.
He said "parts of what actually occurred'' remained unclear but based on the reports of officers who were present, police were not confident charges would be successful.
"And it was, to a degree, coincidental that police staff were present at the time,'' Mr Handcock said.
"At the end of the day, is there sufficient evidence for us to ... secure a conviction? And the answer is no, so it's not worth ... initiating a prosecution.''
Taane's troublemaking lyrics last month came as an encore to the almost identical performance that saw him arrested during a gig at Illuminati Superclub in Tauranga last year.
Charges were later dropped in that case after he explained he was singing the same NWA song.
Mr Handcock said officers had done the right thing by reporting what had happened at Taane's performance last month.