Yes, a building permit is required to create any finished space in the home. You will be required to provide a simple floor plan showing the proposed finished and unfinished areas of the basement. It is helpful to show the location of the heating system, fuel tank, windows, and doors.
Generally, the Building Official will make a pre-inspection of the basement before the construction begins. In most cases, this will only take a few minutes, and in many cases will help identify potential problems or issues that may come up later in the project.
If you have any questions as you plan your project please contact the Building Department.