Taylor could be heard saying for police to "bring their guns" in the background of the call.
That was according to Inspector Dean Anderson, who was second in charge of the criminal investigation into Taylor's death and who read his statement to the inquest.
He said Taylor armed himself with a machete and slasher and was sitting outside the home "as if waiting for police".
Two police officers in one car and a third officer in a second car arrived about 8.30am and Taylor moved quickly towards the first patrol car, which had two officers in it.
Anderson said Taylor ran at them and threw the sickle (slasher) blade at the car, hitting the side of the car and front window.
The officer in the front passenger seat, known as officer D as his name is suppressed, was shouting at Taylor to drop his weapons.
Officer D drew his Glock pistol but Taylor raised his arm as if to swing the machete at him in the passenger seat.
Still sitting in the passenger seat and fearing for his life, the officer fired four shots at Taylor.
As Taylor was walking away towards the front of the police car, injured, the officer driving the car, known as officer E, presented his Taser and told him to surrender.
Taylor eventually raised his hands and fell to the ground, where he died.
Avery and her children, who were at the property, have always disputed the police version of events, saying instead police shot him in the back as he surrendered and walked away with his hands in the air.
Coroner Peter Ryan told those at the inquest - including Taylor's family - the hearing wasn't to attribute blame.
"It is to understand what happened and why it happened and if there is something that can be done in the future to prevent further death in similar circumstances in the future."
The inquest heard Taylor had more than 40 previous convictions between 1976 and 2013 for drugs, dishonesty, violence and threatening behaviour. He had served prison time for aggravated assault.
It also heard Taylor had previously been involved in a number of threats and intimidation-related incidents with members of the public involving perceived land injustices relating to Avery's property.
Avery and Taylor had a "difficult" relationship with the Hauraki District Council because they disagreed over access to a paper road on the property. The issues over the paper road had caused "angst in the community".
There had been numerous complaints made to police and the council regarding Taylor locking the gates on the road, denying public access, dogs attacking stock and motorbikes being on a rail trail.
Under questioning from Taylor family lawyer Adam Couchman, Anderson confirmed that to his knowledge Taylor didn't have previous convictions for assaulting police.
Couchman also questioned Anderson as to why the officers hadn't chosen to instead fire the Taser.
Anderson said there wasn't time.
"If you don't get both prongs on the body, it won't be effective."
Anderson said if officer D had delayed any further, there might have been "fatal consequences".
He said three investigations, including one by the Independent Police Conduct Authority, had found police used reasonable force and acted in self-defence. Officer D was "justified" in doing so and therefore there was no need to prosecute the police officer, Anderson said.
"The threat was imminent and there was no way to escape ... He acted in defence of himself and others."
Coroner Ryan asked Anderson if officer E could have quickly driven off, as it would take about 3-5 seconds to release the button-style handbrake on newer police cars.
"Should he have put the handbrake on or should he have been ready to drive off forward?"
Anderson said there was no time.
Coroner Ryan also asked if he thought the police acted appropriately by staying seated in the vehicle as it restricted their ability for other actions, such as using pepper spray or a Taser.
"If they had have got out they might have had more options," Coroner Ryan asked.
Anderson said he didn't believe they had sufficient time to do anything, including getting out of the vehicle.
The coroner asked if there was a "deficiency in the planning" when the officers arrived at the farm property.
Anderson said there had been changes to the police's "command and control" since the incident but said, in his view, the officers perhaps should have stopped and worked out a plan before going to the farm.
Officer E gave evidence from behind a screen and said under questioning from the lawyer for the police officers, Susan Hughes, that he had been to Taylor and Avery's property about twice before.
He said Taylor would normally tell police to get off their property but the threats had always been verbal.
"I expected him to be agitated but when he saw me I expected him to work through what had gone on."
Officer E, who had been in the police for 21 years, said he was "pretty stressed" after Taylor threw the weapon at the police car.
"For someone to throw an object at a police car when you turn up is pretty unusual. It's never happened to me before."
He said he thought Taylor was going to "chop" the officer or chop the window with his weapon.
Officer E said he told officer D to "shoot him, shoot him".
He described his stress levels on a scale of one to 10 as being "well past 10".
"I'd never been that stressed in my life. I thought there is no way I can save either of us, one of us is going to be cut or dead. The only person who could save officer D was himself."
Lawyer for Taylor's immediate family, Louis Wilkins, questioned officer E and said it was a difficult day for all involved.
"You're an old school country policeman, you thought you could show up, show your face and talk him down."
Wilkins said officer D was pretty much "trapped" in the passenger seat but he asked officer E if it would have helped if they had a better contingency plan.
"Possibly but it was a domestic with no violence involved and you go out and do your job," officer E said.
"I was thinking 'there he is, I will hop out and have a word'."
The inquest continues.
