He has been charged with disorderly behaviour likely to cause violence and will appear in court this week.
Taane, 34, was performing at a Tauranga club early Sunday when police arrived to carry out a standard inspection of the premises.
It's understood he began singing "f**k the police" while officers did their inspection.
Taane today said he was arrested about 3.30am for reciting the lyrics of a song by N.W.A. He said he was handcuffed and spent the rest of the night in a police cell.
"This song is a protest song written by Ice Cube in 1988, and I have often played and sang along to it at my R18 concerts with no trouble at all," he said in a statement.
Taane said he usually had an excellent rapport with police and wanted to retain a positive relationship.
"I'm 34-years-old and this is my first ever offence, and I feel it is unfortunate that one particular police officer became upset with the N.W.A. lyrics I sang that night.
"It was an awesome concert with an amazing crowd, and this is why I always come back to Tauranga to play."
He thanked his family and friends for support and said he hoped the matter would be resolved positively and quickly.
Taane, a former member of New Zealand band Salmonella Dub, is best known for his No 1 solo hit Always On My Mind.
He is due to appear in Tauranga District Court on Friday.
Western Bay of Plenty police have confirmed they arrested a 34-year-old musician at a Tauranga tavern early Sunday for disorderly behaviour likely to cause violence.
A 24-year-old man was also charged with obstruction and resisting arrest.
Acting area commander, Inspector Karl Wright-St Clair, said police would not comment further because the case was before the court.
