old_contents: # sourced from GIS StackExchange
  # http://gis.stackexchange.com/a/78986/15499
  # with a little help from ESRI
  # http://resources.arcgis.com/en/help/main/10.1/index.html#//00170000006p000000
  
  import arcpy
  from arcpy import env
  
  # Make Feature Layers
  arcpy.MakeFeatureLayer_management("C:/Export/address/600ScaleGrid.shp", "polylyr")
  arcpy.MakeFeatureLayer_management("C:/Export/address/address.shp", "pntlyr")
  
  # loop through the unique list of polygons
  for x in range(1,150):
      # Select Polygon Layer
      arcpy.SelectLayerByAttribute_management("polylyr", "NEW_SELECTION", "TAXMAP = " + str.zfill(3)(x))
      # Select Intersecting Points
      arcpy.SelectLayerByLocation_management("pntlyr","INTERSECT","polylyr", "#", "NEW_SELECTION")
      # Copy Selected points to new shapefile in C:/Export folder
      arcpy.CopyFeatures_management("pntlyr", "C:/Export/address/clip/address_" + str(x) + ".shp")
new_contents: # sourced from GIS StackExchange
  # http://gis.stackexchange.com/a/78986/15499
  # with a little help from ESRI
  # http://resources.arcgis.com/en/help/main/10.1/index.html#//00170000006p000000
  
  import arcpy
  from arcpy import env
  
  # Make Feature Layers
  arcpy.MakeFeatureLayer_management("C:/Export/address/600ScaleGrid.shp", "polylyr")
  arcpy.MakeFeatureLayer_management("C:/Export/address/address.shp", "pntlyr")
  
  # loop through the unique list of polygons
  for x in range(1,150):
      # Select Polygon Layer
      arcpy.SelectLayerByAttribute_management("polylyr", "NEW_SELECTION", "TAXMAP = " + str(x))
      # Select Intersecting Points
      arcpy.SelectLayerByLocation_management("pntlyr","INTERSECT","polylyr", "#", "NEW_SELECTION")
      # Copy Selected points to new shapefile in C:/Export folder
      arcpy.CopyFeatures_management("pntlyr", "C:/Export/address/clip/address_" + str(x).zfill(3) + ".shp")
subject: put padding in wrong call