  Let $G$ be a finite group. For a $G$-ring $A,$ let ${\rm Pic}^{\it G}({\it
A})$ denote the equivariant Picard group of $A.$ We show that if $A$ is a
finite type algebra over a field $k$ then ${\rm Pic}^{\it G}({\it A})$ is
contracted in the sense of Bass with contraction $H_{et}^{1}(G; Spec(A),
\mathbb{Z}).$ This gives a natural decomposition of the group ${\rm Pic}^{\it
G}({\it A[t, t^{-1}]}).$
