The coveted award caps a remarkable season for the English teenager who became the youngest winner of the Ladies' British Open Amateur Championship when she took the title in June aged only 16. Taylor also played in the senior Women's British Open and represented Europe in the Junior Solheim Cup.
The Woburn-based 17-year-old beat cyclist Lucy Garner and swimmer Eleanor Simmonds to the award.
She shared the spotlight at the live awards show with fellow golfers Rory McIlroy, Luke Donald and Darren Clarke, who finished runner-up for the main BBC Sports Personality of the Year honour.
Steve Robinson, English Women's Golf Association national coach, added: "Lauren has always impressed me with her work-rate, attitude and ambition along with her desire to compete - the attributes all top-class athletes require. "Lauren is a very talented, down to earth sportsperson and has a very bright future ahead of her."
The youngster made a memorable debut on the Ladies European Tour, qualifying for the Slovak Open and then hitting a hole-in-one during the first round.
Taylor, who has signed to join Baylor University in Texas next year, helped England win a silver medal at the European Girls Team Championships and was also a member of England's winning Ladies' Home Internationals team. Speaking about her achievements, Ryder Cup player and world number 25 Ian Poulter said: "She is not only a great golfer but an extremely well-rounded young woman.
"Lauren is a deserving winner of the award and has my full support as she moves forward with her golfing career."