Shannon Butterworth shared the sad news to Mr Taylor's Facebook page on Saturday.
"The family of Lea Taylor wishes to let all his family and friends know he lost his battle with cancer and slipped away peacefully in the early hours of this morning," Ms Butterworth's Facebook post read.
"We will post information for his funeral when it has been arranged."
Mr Taylor, who was 66 years old, served as mayor of Rockhampton City Council between 1991 and 1997.
He last ran for mayor in Rockhampton Regional Council's 2016 election, where the position went to former mayor Margaret Strelow.
Former Rockhampton councillor Rose Swadling said she had known Mr Taylor since he was 16 and a half years old.