This year New Zealand was represented for the first time, by Wing Commander Barry Nelson, who said the service "was a poignant time to reflect on service and sacrifice".
Flt Lt Taylor was born in Wandsworth, London, in 1915, but grew up in New Zealand and was educated in Hastings.
He joined the air force in 1941 and trained in Canada, before joining the RAF's No 7 Squadron and flying operational missions from late 1942, until shot down.
The courage of German-occupied Sassenay was remarkable, Wng Cdr Nelson said.
After the crash the villagers held a funeral for the eight airmen as an act of resistance, despite German orders not to, he said.
The mayor of Sassenay was arrested by the Gestapo for his part in the funeral.
"I am proud to honour the bravery of the people of Sassenay and those who are responsible for the memorial that marks the fallen members of the RAF Lancaster bomber, including Flight Lieutenant Taylor."
The service also remembered a young Frenchman killed by downed power lines as he approached the crash site to help the crew.
- NZPA