Oh, drat. Sorry, yes; I forgot there is a universal "background" palette entry, shared by all tiles, and generally output "outside" of the rasterized portion of the screen.
If the background layer is always behind the sprite layer, then how do you get this: (" title="External link">VIDEO) Or the mist in the Faxanadu video linked above? Or the drills that carve through the floor and ceiling in Mega Man 2? If that isn't drawing the background in front of the sprites, then how are they achieving those visuals?
As I understand it, they're placing sprites containing those background tiles overtop of the sprites which they want to look like are behind the tilemap. So, back to front, tilemap -> mobile sprite -> background impostor sprite.