Get rid of background on indentation

[matejkramny]

See screenshot:

I have no idea what i'm doing wrong. Config:

set listchars=tab:\ \ ,trail:·,nbsp:_
set tabstop=4
set shiftwidth=4
set expandtab
set list

let g:solarized_visibility='low'
let g:solarized_termcolors=16
color solarized
syntax enable
set background=dark
colorscheme solarized

Tried variations of solarized_visibility as well as noset, but it still shows light background on second level of indentation.
I should note that when shiftwidth is 2 (or below tabstop) it won't show.

How can I fix this?

Cheers

[Hyvi]

let g:solarized_visibility='low' let g:solarized_termcolors=16
it works for me (iterm @ mac os )